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作者：DeFond, Mark; Hu, Jinshuai; Hung, Mingyi; Li, Siqi
作者单位：University of Southern California; Xiamen University; Hong Kong University of Science & Technology; Santa Clara University
摘要：We study the effect of fair value accounting on the association between net income and cash pay following the 2005 worldwide adoption of IFRS. We find that, while IFRS's non-fair-value provisions are associated with an increase in this association, its fair value provisions are associated with a decrease in this association. Overall, we contribute to the literature on the usefulness of fair value accounting by presenting evidence that fair value accounting is associated with a decrease in this...
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作者：Erhard, Ryan; Sloan, Richard G.
作者单位：University of Southern California
摘要：Chordia and Miao (2020) provide evidence that low-latency trading (LLT) improves the long-term informational efficiency of stock prices. This discussion raises two primary concerns with their analysis. First, the mechanism through which LLT enhances long-term efficiency is unclear. Second, CM's measure of LLT trading activity is correlated with non-LLT trading activity, which may in turn cause the documented improvements in efficiency. We close by proposing an alternative explanationdchanges i...
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作者：Banerjee, Snehal; Breon-Drish, Bradyn; Engelberg, Joseph
作者单位：University of San Diego
摘要：In their review of investor processing costs, Blankespoor, deHaan, and Marinovic (2020) encourage researchers to consider rational inattention as a way to explain stock market underreaction to public information. We formalize their argument and propose alternatives using a set of formal models. To distinguish between the various drivers of under reaction, we encourage future researchers to consider the opportunity cost of being inattentive, the historical evolution of underreaction, and the di...
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作者：Barua, Abhijit; Lennox, Clive; Raghunandan, Aneesh
作者单位：State University System of Florida; Florida International University; University of Southern California; University of London; London School Economics & Political Science
摘要：Many studies report that audit fees are discounted in the year of an auditor change and regulators have long been concerned that such fee discounting could impair audit quality. We find significant bias in the way studies have tested for fee discounting. The bias exists because interim procedures are usually performed by both the predecessor and successor auditors but only the successor's fee needs to be disclosed. Accordingly, the disclosed fee during the auditor change year usually relates t...
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作者：Du, Kai; Huddart, Steven; Xue, Lingzhou; Zhang, Yifan
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; U.S. Securities & Exchange Commission (SEC); Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
摘要：We propose and validate a new measure of earnings quality based on a hidden Markov model. This measure, termed earnings fidelity, captures how faithful earnings signals are in revealing the true economic state of the firm. We estimate the measure using a Markov chain Monte Carlo procedure in a Bayesian hierarchical framework that accommodates cross-sectional heterogeneity. Earnings fidelity is positively associated with the forward earnings response coefficient. It significantly outperforms ex...
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作者：Basu, Sudipta; Vitanza, Justin; Wang, Wei
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University
摘要：Large net loan charge-offs are frequently associated with large decreases in nonperforming loans and large increases in loan loss provisions, inducing a V-shaped relation between loan loss provisions and nonperforming loan changes. Failure to model the asymmetry attributable to net loan charge-offs can change inferences about the presence of earnings management and the effects of delayed loan loss recognition in prior papers that assumed linearity. Future researchers should either include net ...
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作者：Blankespoor, Elizabeth; deHaan, Ed; Marinovic, Ivan
作者单位：University of Washington; University of Washington Seattle; Stanford University
摘要：This paper reviews the literature examining how costs of monitoring for, acquiring, and analyzing firm disclosures - collectively, disclosure processing costs - affect investor information choices, trades, and market outcomes. The existence of disclosure processing costs means that disclosures are not public information as traditionally defined, but instead can be a form of costly private information. Conceptualizing disclosures as private information makes it clear that learning from disclosu...
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作者：Bhojraj, Sanjeev; Mohanram, Partha; Zhang, Suning
作者单位：Cornell University; University of Toronto; Iowa State University
摘要：This paper examines the role that exchange-traded funds (ETFs) play in the transfer of information across firms around earnings announcements. Our analysis focuses on the differences in information transfer between broad-based and sector ETFs. We find that firms with sector ETF ownership are associated with reduced over-extrapolation of intra-industry information, increased earnings response coefficients (ERCs), greater responsiveness to the industry and idiosyncratic components of earnings su...
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作者：Holthausen, Robert W.; Core, John E.; Hanlon, Michelle; Guay, Wayne; Wu, Joanna; Lang, Mark
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作者：Zhang, Ivy Xiying; Zhang, Yong
作者单位：University of California System; University of California Riverside; Hong Kong Polytechnic University
摘要：Using the setting of IFRS adoption, DeFond, Hu, Hung, and Li (2020) examine the impact of fair value accounting on the usefulness of earnings in executive performance evaluation and compensation. In this discussion, we review the research design, discuss the implications of the findings, and provide suggestions for future research. In particular, DeFond et al.'s measure of the impact of fair value accounting may contain substantial measurement error, which calls for additional analyses. We bel...
