-
作者：Hsu, Charles; Wang, Rencheng; Whipple, Benjamin C.
作者单位：Hong Kong University of Science & Technology; Singapore Management University; University System of Georgia; University of Georgia
摘要：We investigate whether non-GAAP earnings disclosures increase stock price crash risk. Consistent with non-GAAP disclosures allowing managers to inflate investors' perceptions about firm performance, our results indicate that income increasing non-GAAP reporting increases crash risk. We also find that managers can use non-GAAP reporting as a substitute for earnings management to withhold bad news from investors (the traditional explanation for crashes). Finally, we find a positive association b...
-
作者：Lee, Charles M. C.; Zhong, Qinlin
作者单位：Stanford University; University of Washington; University of Washington Seattle; Fudan University
摘要：Between 2010 and 2017, Chinese investors used an investor interactive platform (IIP) to ask public companies around 2.5 million questions, the vast majority of which received a reply within two weeks. We analyze these IIP dialogues using a BERT-based algorithm and provide preliminary evidence on their causes and consequences. Our analyses show most questions reflect investors' difficulties in processing information already in the public domain. Controlling for other news, higher IIP activity i...
-
作者：Whited, Toni M.
作者单位：University of Michigan System; University of Michigan; National Bureau of Economic Research
摘要：Armstrong et al. (2022) review the various econometric methods that have been used to draw causal inference in the accounting literature and offer an alternative method for conducting research when causal methods are not applicable. This discussion provides background for the emphasis on causal inference in accounting. It also draws parallels between the authors' proposed quasi-causal method and the structural estimation methods that have been used in finance and that are starting to be used i...
-
作者：Maffett, Mark; Nakhmurina, Anya; Skinner, Douglas J.
作者单位：University of Miami; University of Chicago; Yale University
摘要：We analyze nearly 7,000 shareholder activist campaigns across 56 countries and show that shareholder activism is now a global phenomenon. Our analyses provide evidence on factors that explain the spread of activism and two related questions. First, we measure the extent to which country-level governance regulations facilitate shareholder engagement, a necessary condition for activism, and show that our measure of shareholder-empowering governance regulation explains cross-country variation in ...
-
作者：Tseng, Kevin
作者单位：National Taiwan University
摘要：This paper provides empirical evidence for the role of technology spillover, an important innovation externality, in asset pricing. Using patent and R&D data, I show that firms with more technology spillover earn 7.7% higher annualized returns than firms with less technology spillover. Exploiting three quasi-natural experiments, I find that the return effect is strengthened (attenuated) when there is a plausibly exogenous increase (decrease) in the flow of technological information across firm...
-
作者：Davidson, Robert H.
作者单位：Virginia Polytechnic Institute & State University
摘要：In within-firm analysis of 1,805 executives, executives implicated in financial reporting fraud cases have significantly stronger equity incentives than their within-firm peers who are not implicated in the fraud. Executives implicated in fraud cases also have significantly stronger equity incentives than executives at non-fraud firms in similar roles. However, the equity incentives of non-implicated executives at fraud firms are no different than those for executives at non-fraud firms. The r...
-
作者：Penman, Stephen; Zhu, Julie
作者单位：Columbia University; Bocconi University; Fudan University
摘要：This paper recasts the consumption asset pricing model in terms of accounting numbers that connect to consumption and the risk to consumption under accounting principles. The modeling yields an expected return measure that forecasts realized returns and the risk to those returns. It leads to the construction of a pricing factor from the accounting infor-mation. The factor performs well relative to extant factors in explaining cross-sectional returns. The factor return has negative correlation ...
-
作者：Yue, Heng; Zhang, Liandong; Zhong, Qinlin
作者单位：Singapore Management University; Fudan University
摘要：The distribution of power in the political system shapes the financial reporting opacity of banks. Specifically, banks located in states with senators on the Senate Banking Committee (BC senators) have greater abnormal loan loss provisions than banks in other states. The result is stronger for larger banks and banks with higher risk. In addition, BC senators have a negative effect on the likelihood of banks in their home states receiving enforcement actions, and, more importantly, this effect ...
-
作者：Xiong, Yan; Jiang, Xu
作者单位：Hong Kong University of Science & Technology; Duke University
摘要：We analytically study the economic consequences of the disclosure of managerial compensation contracts in a setting where two firms, by designing compensation contracts for their respective managers, compete for a new investment opportunity. Each manager is privately informed about her firm's profitability from this investment. We find that the disclosure leads to firms' emphasizing short-term stock performance in their managers' contracts. This, in turn, induces managers to signal favorable p...
-
作者：Minnis, Michael
作者单位：University of Chicago
摘要：One of the most significant capital market developments over the last two decades has been the growth of private capital markets-markets that raise capital outside of publicly traded venues and can face substantially less mandated public financial reporting. Un-derstanding the causes and consequences of the relative growth of private capital markets is a first order research question. As private capital markets have grown, interest in regulating and researching private markets has increased. R...
