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作者：Hepfer, Bradford F.; Judd, Hannah W.; Rice, Sarah C.
作者单位：Texas A&M University System; Texas A&M University College Station; Brigham Young University
摘要：Using the IPO setting, we test whether firms signal the quality of their investments in innovation activities by claiming R&D tax credits. We find the presence and amount of the R&D credit are each associated with lower information asymmetry and with higher investor demand at IPO. Conservatively, we estimate that sample firms realize additional IPO proceeds of 32-45 percent of their creditable R&D expenditures, indicating economically significant non-tax benefits associated with the R&D credit...
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作者：Breuer, Matthias; Leuz, Christian; Vanhaverbeke, Steven
作者单位：Columbia University; University of Chicago; KU Leuven
摘要：We investigate the impact of reporting regulation on corporate innovation. Exploiting thresholds in Europe's regulation, we find that forcing firms to disclose financial statements reduces the number of innovating firms and the average firm's innovation spending, but it does not reduce industry-wide total innovation spending. Our results suggest that the regulation imposes proprietary costs on firms, which discourages innovation activity, especially by smaller firms. We also show that the regu...
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作者：Granja, Joao; Nagel, Fabian
作者单位：University of Chicago; Northwestern University
摘要：We use data from TransUnion, a large U.S. credit bureau covering millions of individual consumer loans, to examine the transition to the Current Expected Credit Loss (CECL) accounting standard and to provide novel evidence about the impact that raising reserve requirements has on banks' pricing and lending decisions in the U.S. consumer lending market. We find that greater reserve requirements following the adoption of CECL induce a statistically significant but economically moderate increase ...
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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...
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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...
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作者：Blankespoor, Elizabeth; deHaan, Ed; Guay, Wayne; Lang, Mark; Shroff, Nemit; Wu, Joanna
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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...
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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...
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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...
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作者：Cuny, Christine; Li, Ken; Nakhmurina, Anya; Watts, Edward M.
作者单位：New York University; McMaster University; Yale University
摘要：This paper examines which municipal disclosures provide informational value to investors. Using the entire universe of post-issuance financial and event disclosures from 2009 to 2022, we find that most municipal bonds do not trade in the weeks following a disclosure. However, some disclosures do provide enough new information to increase trading. Investors trade more on credit-relevant disclosures, such as adverse credit event disclosures, and less on required annual financial statements. Trad...
