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作者：Beck, Matthew J.; Gunn, Joshua L.; Hallman, Nicholas
作者单位：University of Kansas; Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh; University of Texas System; University of Texas Austin
摘要：Audit firms are organized as collections of geographically decentralized offices. Decentralization allows for increased proximity between offices and clients, improving the efficiency of auditors' interactions with client personnel. Yet decentralization also decreases the proximity between offices within each firm, potentially impeding auditors' interactions with each other. We show that decreased proximity between offices reduces inter-office audit quality spillovers and that this effect is d...
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作者：Chen, Shuping; Huang, Ying; Li, Ningzhong; Shevlin, Terry
作者单位：University of Texas System; University of Texas Austin; University of Texas System; University of Texas Dallas; University of California System; University of California Irvine
摘要：We study whether, and more importantly, through what mechanisms, quasi-indexers affect portfolio firms' tax planning by employing the discontinuity in quasi-indexer ownership around the Russell 1000/2000 index cutoff. Using a regression discontinuity design, we find that higher quasi-indexer ownership leads to greater tax saving. With respect to the mechanisms, we find that the greater tax saving is a result of a focus on improved overall firm performance, not a specific focus on improved tax ...
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作者：Demerjian, Peter
作者单位：University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital
摘要：Credit default swaps (CDS) represent a major innovation in debt markets, allowing lenders to transfer credit risk to a counterparty by paying a premium. Shan, Tang, and Winton (2019) explore whether the availability of CDS affects the monitoring incentives of lenders. Their paper finds that CDS leads to looser loan terms (less collateral and looser covenants), consistent with a reduction in monitoring incentives. I examine several aspects of their study, including whether loan provisions and C...
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作者：Shan, Chenyu; Tang, Dragon Yongjun; Winton, Andrew
作者单位：Shanghai University of Finance & Economics; University of Hong Kong; University of Minnesota System; University of Minnesota Twin Cities; Shanghai Jiao Tong University
摘要：The rise of credit default swaps (CDS) provides creditors with a market-based approach to obtaining protection, but it can also affect lenders' monitoring of the borrowers. We find that after CDS begin trading on a given firm, new loans to that firm are less likely to require collateral and have less strict financial covenants, even controlling for endogeneity. The effects are stronger when lenders have easier access to CDS, for safer firms, credit lines, and performance-based covenants. Our e...
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作者：Gao, Pingyang; Jiang, Xu; Zhang, Gaoqing
作者单位：University of Chicago; Duke University; University of Minnesota System; University of Minnesota Twin Cities
摘要：The adoption of common accounting standards generates both a precision effect and a network effect. When firms use common standards, investors can leverage their knowledge about the standards to process more financial reports. Embedding both effects into the economic framework of Baiman and Verrecchia (1995, 1996), we study the adoption's effects on reporting precision, firm value, and liquidity of both the switcher and the early adopter. The model helps address the identification challenge an...
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作者：Noh, Suzie; So, Eric C.; Weber, Joseph P.
作者单位：Massachusetts Institute of Technology (MIT)
摘要：We examine the relation between firms' voluntary guidance and mandatory 8K filings. We find a negative relation between guidance and 8Ks, which strengthens following the 2004 expansion of mandatory 8K requirements, consistent with firms using the disclosures as substitutes. Increases in 8Ks coincide with declines in firms' profits, but this negative relation weakens after the 2004 regulation, consistent with firms broadening the scope of information conveyed through 8Ks. Together, our findings...
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作者：Lewellen, Jonathan; Resutek, Robert J.
作者单位：Dartmouth College; University System of Georgia; University of Georgia
摘要：Higher accruals are associated with lower subsequent earnings. We show this phenomenon can be explained by the way sales, profits, and working capital respond to changes in a firm's product markets. Empirically, high accruals predict high subsequent sales growth but a long-lasting drop in both profits and profitability. Accruals also predict an increase in future competition, suggesting that accruals are correlated with abnormally high-and, in equilibrium, transitory-true profitability that at...
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作者：Lel, Ugur; Miller, Darius
作者单位：University System of Georgia; University of Georgia; Southern Methodist University
摘要：We find that the directorial labor market's ability to align the incentives of managers and shareholders depends on investor protection in a country. For example, following a shareholder unfriendly signal in common law countries, directors lose 2.64 times more outside board seats and are 57% more likely to be turned over at their own firm than in civil law countries. Further, outside director appointments are value relevant only strong investor protection countries. Our findings suggest that t...
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作者：Kyung, Hangsoo; Lee, Hakyin; Marquardt, Carol
作者单位：Chinese University of Hong Kong; City University of New York (CUNY) System; Baruch College (CUNY)
摘要：We examine the effect of voluntary adoption of clawback provisions on non-GAAP earnings disclosures. Prior literature documents that voluntary clawback adoption improves financial reporting quality by increasing the costs of misstating GAAP earnings. However, managers may respond to perceptions of reduced discretion over GAAP reporting by increasing their reliance on non-GAAP earnings disclosures. Using a propensity score matched sample, we find that non-GAAP earnings disclosure frequency incr...
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作者：Pacelli, Joseph
作者单位：Indiana University System; Indiana University Bloomington; IU Kelley School of Business
摘要：This study examines the relation between financial institutions' corporate culture and the quality of analysts' research services. Using data collected from the Financial Industry Regulatory Authority, I measure the weakness of financial institutions' corporate culture based on violations observed in securities activities unrelated to equity research. I find evidence demonstrating an association between weak corporate culture and analysts' providing research products catered to institutional c...
