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作者：Kim, Yongtae; Su, Lixin (Nancy); Zhou, Gaoguang (Stephen); Zhu, Xindong (Kevin)
作者单位：Santa Clara University; Korea Advanced Institute of Science & Technology (KAIST); Lingnan University; Hong Kong Baptist University; City University of Hong Kong
摘要：This study examines how PCAOB international inspections of non-U.S. auditors affect international Merger and Acquisition (M&A) outcomes. We find that clients of inspected auditors are more likely to become acquisition targets after the public disclosure of auditor's inspection report. We also find that deal completion is more likely and deal announcement returns are higher if deals involve targets with auditors for which inspection reports are available. Engagement deficiencies and unremediate...
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作者：Engelberg, Joseph; McLean, R. David; Pontiff, Jeffrey
作者单位：University of California System; University of California San Diego; Georgetown University; Boston College
摘要：Analysts' price targets and recommendations contradict stock return anomaly variables. Using an index based on 125 anomalies, we find that analysts' annual stock return forecasts are 11% higher for anomaly-shorts than for anomaly-longs. Anomaly-shorts' return forecasts are excessively optimistic, exceeding realized returns by 34%. Recommendations also tend to be more favorable for anomaly-shorts, although this result varies across anomaly types. Consistent with analysts' slowly incorporating a...
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作者：Laurion, Henry
作者单位：University of Colorado System; University of Colorado Boulder
摘要：Managers almost always define non-GAAP earnings to exclude the effects of acquisition and restructuring expenses, the amortization of intangibles, and impairments. I find that managers with a history of reporting non-GAAP earnings act as if they place lower weight on these excluded expenses when making real activities and accounting choices. They pursue more and larger acquisitions, have higher total capital investment, are more likely to restructure, and are more likely to recognize discretio...
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作者：Gao, Pingyang; Jiang, Xu
作者单位：University of Chicago; Duke University
摘要：Discrete recognition is a long-standing and ubiquitous accounting practice, but it has been widely criticized for suppressing information and inducing accounting-motivated transactions. We study a model to examine the economic consequences of shifting away from discrete recognition to a continuous measurement approach. Without manipulation, discrete recognition is less informative than the continuous approach. However, the continuous regime induces more manipulation. The equilibrium informativ...
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作者：Bushee, Brian; Cedergren, Matthew; Michels, Jeremy
作者单位：University of Pennsylvania
摘要：We examine how the media influences retail trade and market returns during the quiet period that follows a firm's IPO. We find that more media coverage during this period is associated with more purchases by retail investors and that such purchases are attention-driven, rather than information-based. Further, these retail trades are negatively associated with stock returns at the firm's first earnings announcement post-IPO. Our results suggest that media coverage, combined with market friction...
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作者：Beaver, William H.; McNichols, Maureen F.; Wang, Zach Z.
作者单位：Stanford University; University of Illinois System; University of Illinois Urbana-Champaign
摘要：We examine the role of concurrent information in the striking increase in investor response to earnings announcements from 2001 to 2016, as measured by return variability and volume following Beaver (1968). We find management guidance, analyst forecasts, and disaggregated financial statement line items are more frequently bundled with earnings announcements, and each of these items explains part of the increase in market response. Furthermore, collectively, these concurrent information release...
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作者：Penman, Stephen; Zhang, Xiao-Jun
作者单位：University of California System; University of California Berkeley; Columbia University
摘要：We connect conservative accounting to the cost of capital by developing an accounting model within an asset pricing framework. The model has three distinctive features: (1) transaction-cycle-conformity, where the book value equals the value of cash at the beginning and the end of a cash-to-cash transaction cycle; (2) a revenue recognition principle, where uncertainty affects the amount of revenues recognized; (3) a matching principle, where expenses are matched with revenue with a conservative...
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作者：Schantl, Stefan F.; Wagenhofer, Alfred
作者单位：University of Melbourne; University of Graz
摘要：This paper studies strategic interactions between public and private enforcement of accounting regulation and their consequences for the deterrence of financial misreporting. We develop an economic model with a manager, a public enforcement agency, and an investor and derive equilibrium strategies for manipulative effort, routine investigative effort, and costly private litigation. Our main results are as follows. (i) Strengthening private enforcement unambiguously enhances deterrence, whereas...
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作者：Boland, Matthew; Godsell, David
作者单位：Saint Marys University - Canada; University of Illinois System; University of Illinois Urbana-Champaign
摘要：We test the political cost hypothesis using local soldier fatalities as a source of as-if-random variation in the threat of political costs for local defense firms. Soldier fatalities vary the threat of political costs for defense firms because the U.S. tradition of shared sacrifice during war vulgarizes war profits amid dead soldiers. Local defense firms record more income-decreasing accruals, equal to 1.17 percent of total assets, in response to a one standard deviation increase in local sol...
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作者：He, Shuoyuan; Narayanamoorthy, Ganapathi (Gans)
作者单位：Tulane University; California State University System; San Francisco State University
摘要：We document that earnings acceleration, defined as the quarter-over-quarter change in earnings growth, has significant explanatory power for future excess returns. These excess returns are robust to a wide range of previously documented anomalies and a battery of risk controls. The future return predictability appears to be consistent with investors assuming a seasonal random walk model for quarterly earnings and missing predictable implications of earnings acceleration for future earnings gro...
