-
作者：Armstrong, Daphne M.; Glaeser, Stephen; Hoopes, Jeffrey L.
作者单位：University of North Carolina; University of North Carolina Chapel Hill
摘要：We use textual analysis of mandatory accounting filings to develop firm-level, time-varying measures of exposure to individual government agencies including the Securities Exchange Commission (SEC) and Internal Revenue Service (IRS). The measures vary predictably across industries and with agency-specific events such as the Sarbanes Oxley Act at the SEC and budget cuts at the IRS. The measures positively relate to undisclosed agency investigations and financial statement downloads. Firms' tota...
-
作者：Cowx, Mary
作者单位：Arizona State University; Arizona State University-Tempe
摘要：Tax enforcement deters noncompliance, increasing tax revenue, but may also discourage taxpayer investment in activities that policymakers aim to incentivize through tax credits and deductions. This paper investigates this investment-revenue trade-off through the lens of the research and development (R&D) tax credit, a federal tax incentive that is highly scrutinized by the Internal Revenue Service (IRS). My results suggest that expectations about IRS corporate tax scrutiny are negatively assoc...
-
作者：Blankespoor, Elizabeth; deHaan, Ed; Guay, Wayne; Lang, Mark; Shroff, Nemit; Wu, Joanna
-
作者：Chen, Chuan; Jia, Yanrong; Martin, Xiumin; Silveira, Bernardo
作者单位：Washington University (WUSTL); City University of New York (CUNY) System; Baruch College (CUNY); Washington University (WUSTL); University of California System; University of California Los Angeles
摘要：We examine the objective function of the SEC against financial misconduct by estimating a structural model of the interactions between the SEC and a regulated firm. The SEC considers social costs, enforcement costs, and firms' compliance costs when making enforcement decisions. Identification exploits SOX as a shock to enforcement intensity. Four insights emerge from counterfactual analyses. First, marginal social costs have a greater impact on the SEC's perceived welfare than marginal enforce...
-
作者：Liu, Betty; Moss, Austin
作者单位：Indiana University System; IU Kelley School of Business; Indiana University Bloomington; University of Colorado System; University of Colorado Boulder
摘要：We offer empirical evidence on the role of accounting information in shaping the incentives to produce fake news. We document that fake news authors strategically (1) publish their articles near earnings announcements, leveraging the widespread market attention these events attract, and (2) within the near-announcement window, avoid publishing post-announcement when investors are less susceptible to fake news due to the disclosure of accounting information. In extending our analyses to the bro...
-
作者：Ru, Hong; Yang, Endong; Zou, Kunru
作者单位：Nanyang Technological University; University of Macau; University of Macau; Hong Kong Baptist University
摘要：This study investigates how CEOs' experience of natural disasters and severe disease outbreaks in their formative years influences their firms' responses to the COVID-19 pandemic in the United States. We observe that firms whose CEOs experienced disease outbreaks akin to COVID-19 early in their lives demonstrated more conservative responses to the emergence of the COVID-19 in late February 2020, notably through a substantial slowdown in capital expenditure growth. Moreover, firms led by CEOs w...
-
作者：Chen, Jie; Su, Xunhua; Tian, Xuan; Xu, Bin; Zuo, Luo
作者单位：University of Leeds; Norwegian School of Economics (NHH); Tsinghua University; University of Reading; National University of Singapore
摘要：We examine whether major corporate customers can deter misconduct among their suppliers. Our findings indicate that firms with concentrated customer bases are less likely to commit misconduct and face lower penalties in equilibrium. We also observe a significant decline in supplier misconduct following the establishment of a major customer relationship. Furthermore, the deterrent effect of major customers is more pronounced when customer pressure to reduce supplier misconduct risk is higher. A...
-
作者：Bertomeu, Jeremy; Lin, Yupeng; Liu, Yibin; Ni, Zhenghui
作者单位：Washington University (WUSTL); National University of Singapore; Renmin University of China
摘要：This paper explores how the emergence of generative artificial intelligence is reshaping the information environment in capital markets. Leveraging an unexpected ban on ChatGPT in Italy, we examine its impact on the information processing capabilities of market participants. We employ metrics for AI-generated text detection to show that the ban coincides with decreased AI usage by domestic financial analysts and fewer earnings forecasts issued relative to foreign analysts covering the same fir...
-
作者：Cheng, Qiang; Lin, Pengkai; Zhao, Yue
作者单位：Singapore Management University
摘要：In this paper, we use ChatGPT outages to provide early evidence on whether investors rely on generative artificial intelligence (GenAI) to perform professional tasks and the associated impact on stock price informativeness. We document a significant decline in stock trading volume during ChatGPT outages. The effect is stronger for firms with corporate news released immediately before or during the outages and for firms with higher ownership held by transient institutional investors. We then do...
-
作者：Ryan, Stephen G.
作者单位：New York University
摘要：Basu, Roychowdhury, and Sinha (BRS, this issue) examine effects of U.S. bank regulators' provision of guidance regarding the incorporation of the current expected credit loss (CECL) approach in capital regulation two and a half years after the issuance of ASU 2016-13. BRS argue and provide evidence that, for CECL-adopting banks and their borrowers in syndicated corporate loans, this lagged provision of guidance adversely affected (1) the amounts and interest rates for more affected term loan A...
