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作者：Kang, Jung Koo
作者单位：Harvard University
摘要：I explore whether big-data sources can crowd out the value of private information acquired through lending relationships. Institutional lenders have been shown to exploit their access to borrowers' private information by trading on it in financial markets. As a shock to this advantage, I use the release of the satellite data of car counts in store parking lots of U.S. retailers. This data provides accurate and near-real-time signals of firm performance, which can undermine the value of borrowe...
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作者：Sloan, Richard G.
作者单位：University of Southern California
摘要：Li, Watts, and Zhu (2024) provide evidence that retail investors trade in response to financially material ESG news. This evidence is consistent with retail investors trading in response to the financial implications of ESG-related information in much the same way that they trade in response to the financial implications of other information. The authors suggest that their evidence is inconsistent with retail investors making investment decisions based on their nonpecuniary preferences. I sugg...
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作者：Vanhaverbeke, Steven; Balsmeier, Benjamin; Doherr, Thorsten
作者单位：KU Leuven; University of Luxembourg; Leibniz Association; Zentrum fur Europaische Wirtschaftsforschung (ZEW)
摘要：When firms are forced to publicly disclose financial information, credit rating agencies are generally expected to improve their risk assessments. Theory predicts such an information quality effect but also suggests an adverse reputational concerns effect since credit analysts may become increasingly concerned about alleged rating failures. We empirically examine these predictions using a large-scale quasi-natural experiment in Germany, where a new compliance regime required firms to disclose ...
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作者：Laux, Christian; Laux, Volker
作者单位：Vienna University of Economics & Business; Vienna University of Economics & Business; University of Texas System; University of Texas Austin
摘要：We study the interaction between optimal financial reporting rules and managers' incentives to gather additional information about firm performance. Accounting -based covenants transfer control rights to lenders, allowing them to take corrective actions. After the accounting report is released, the manager can exert effort to uncover whether the report is a false alarm or unduly optimistic. The manager's incentive to gather information stems from optimal incentive contracts and private benefit...
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作者：Pierce, Andrew T.
作者单位：University System of Georgia; Georgia State University
摘要：This study examines the capital -market effects of tipper-tippee insider trading laws. To do so, I exploit the unexpected decision issued by the Court of Appeals for the Second Circuit in U.S. v. Newman 773 F.3d 438, which reduced legal jeopardy for Second Circuit -based market participants prior to being overturned. Consistent with Newman constraining insider trading enforcement, I find strong evidence of plausible insider trading in the Second Circuit following the ruling. I also document a ...
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作者：Arif, Salman; Donovan, John; Gopalan, Yadav; Morris, Arthur
作者单位：University of Minnesota System; University of Minnesota Twin Cities; University of Notre Dame; Indiana University System; IU Kelley School of Business; Indiana University Bloomington; Federal Reserve System - USA; Federal Reserve Bank - St. Louis; Hong Kong University of Science & Technology
摘要：We provide the first evidence that prudential principles shape bankers' executive compensation, a phenomenon we call pay for prudence (PfP). We conjecture that PfP incentivizes bankers to balance shareholders' preference for risk with regulators' preference for prudence. Although PfP terms are often used in bank compensation contracts, we find that the use of detailed and concrete PfP terms are positively associated with equity incentives for risk-taking. Furthermore, detailed and concrete PfP...
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作者：Defond, Mark; Li, Zengquan; Wong, T. J.; Wu, Kaiwen
作者单位：University of Southern California; Shanghai University of Finance & Economics
摘要：Prior research finds that auditors' social connections with their clients harms audit quality. We examine auditors' social connections with members of their clients' business community, a setting in which auditors' connections may improve audit quality. While social ties within a client's business community should improve auditor competency, they also threaten auditor independence. We test the effects of auditors' network connections audit quality using data from China, where data on social co...
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作者：Gad, Mahmoud; Nikolaev, Valeri; Tahoun, Ahmed; van Lent, Laurence
作者单位：Lancaster University; University of Chicago; University of London; London Business School
摘要：We take advantage of a new composite measure of political risk (Hassan et al., 2019) to study the effects of firm-level political risk on private debt markets. First, we use panel data tests and exploit the redrawing of US congressional districts to uncover plausibly exogenous variation in firm-level political risk. We show that borrowers' political risk is linked to interest rates set by lenders. Second, we test for the transmission of political risk from lenders to borrowers. We predict and ...
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作者：Dekeyser, Simon; He, Xianjie; Xiao, Tusheng; Zuo, Luo
作者单位：KU Leuven; Shanghai University of Finance & Economics; Central University of Finance & Economics; National University of Singapore; Cornell University
摘要：We develop the concept of auditor industry range as the extent to which an auditor has experiences in auditing clients from different industries, and we link this construct to auditor performance, drawing on prior research in psychology and cognitive science. We find that auditors with a wide range of industry experiences are more likely to require audit adjustments than auditors with a narrow range. We conduct an extensive set of analyses to mitigate the concern that our results are driven by...
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作者：Jiao, Yawen
作者单位：University of California System; University of California Riverside
摘要：Prior literature shows decision fatigue reduces analysts' forecast accuracy. We study whether analysts strategically manage their decision fatigue. Firms within an analyst's research portfolio can differentially affect the analyst's reputation and career, with larger firms with greater trading volumes and institutional ownership being more important. We find that analysts choose to issue forecasts for more important firms when they are less decision fatigued, i.e., when the number of prior for...
