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作者：Gallo, Lindsey A.; Hann, Rebecca N.; Li, Congcong
作者单位：University of Michigan System; University of Michigan; University System of Maryland; University of Maryland College Park; Singapore Management University
摘要：This paper examines whether the negative association between aggregate earnings and returns is explained by the monetary policy news in aggregate earnings. Using Federal funds futures data to construct a measure of policy news, we find that aggregate earnings convey information about the Fed's policy actions. Additionally, the negative aggregate earnings-returns association is muted when we control for policy surprises. This result is more pronounced in periods with negative policy surprises, ...
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作者：Dhaliwal, Dan S.; Lamoreaux, Phillip T.; Litov, Lubomir P.; Neyland, Jordan B.
作者单位：University of Arizona; Korea University; Arizona State University; Arizona State University-Tempe; University of Oklahoma System; University of Oklahoma - Norman; University of Melbourne
摘要：We examine the impact of shared auditors, defined as audit firms that provide audit services to a target and its acquirer firm prior to an acquisition, on transaction outcomes. We find shared auditors are observed in nearly a quarter of all public acquisitions and targets are more likely to receive a bid from a firm that has the same auditor. Moreover, these shared auditor deals are associated with significantly lower deal premiums, lower target event returns, higher bidder event returns, and ...
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作者：Rhodes, Adrienne
作者单位：Texas A&M University System; Texas A&M University College Station
摘要：I investigate how implicit incentives provided by earnings-based debt covenants affect the structure of CEO compensation contracts. This provides a new and unique view of how the CEO's incentives are shaped by not only his compensation contract but also debt contracts. I find when debt contracts contain an earnings-based covenant, the CEO's pay sensitivity to earnings is muted. Additionally, I find some evidence that pay sensitivity to earnings varies with earnings-based covenant slack. This s...
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作者：Arif, Salman; Marshall, Nathan; Yohn, Teri Lombardi
作者单位：Indiana University System; Indiana University Bloomington; IU Kelley School of Business; University of Colorado System; University of Colorado Boulder
摘要：Accruals are fundamental to financial reporting and are the underlying innovation of accounting. Despite this, accounting research has provided little understanding of how economic forces affect a firm's level of accruals and limited guidance for forming expectations of accruals based on ex ante firm characteristics. We consider accruals as a form of investment and examine whether theoretical predictions from a real options-based investment framework provide insight into the relation between a...
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作者：Garcia Lara, Juan Manuel; Garcia Osma, Beatriz; Penalva, Fernando
作者单位：Universidad Carlos III de Madrid; Autonomous University of Madrid; University of Navarra; IESE Business School
摘要：We argue that conservatism improves investment efficiency. In particular, we predict that it resolves debt-equity conflicts, facilitating a firm's access to debt financing and limiting under investment. This permits the financing of prudent investments that otherwise might not be pursued. Our empirical results confirm these predictions. We find that more conservative firms invest more and issue more debt in settings prone to underinvestment and that these effects are more pronounced in firms c...
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作者：Chen, Peter F.; He, Shaohua; Ma, Zhiming; Stice, Derrald
作者单位：Hong Kong University of Science & Technology; Lancaster University; Peking University
摘要：This study examines the relevance of modified audit opinions (MAO) in private debt contracting. We use the auditor's explanatory language to partition MAOs into Inconsistency opinions, resulting from an accounting change or a restatement; and Inadequacy opinions, arising from a material uncertainty or a going concern (GC) opinion. Using the loan contracts of firms with MAOs, we find that, compared with loans issued in the year after a clean opinion, loans issued in the year after an MAO are as...
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作者：Cuny, Christine
作者单位：New York University
摘要：I investigate the trade-off between capital market incentives, reputational concerns, and administrative costs in the public disclosure decisions of municipal bond issuers. After Ambac's bankruptcy, issuers of insured debt increase disclosure relative to issuers of uninsured debt. After local per capita income declines or expenditures increase, issuers, particularly those with strong electoral incentives and weak voter oversight, reduce disclosure. After the implementation of an online filing ...
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作者：Cai, Ye; Kim, Yongtae; Park, Jong Chool; White, Hal D.
作者单位：Santa Clara University; Old Dominion University; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
摘要：We examine merger and acquisition (M&A) transactions in which the acquirer and the target share a common auditor. We predict that a common auditor can help merging firms reduce uncertainty throughout the acquisition process, which allows managers to more efficiently allocate their capital, resulting in higher quality M&As. Consistent with our prediction, we find that deals with common auditors have higher acquisition announcement returns than do non-common-auditor deals. Further, we find that ...
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作者：Dou, Yiwei; Khan, Mozaffar; Zou, Youli
作者单位：New York University; Harvard University; University of Minnesota System; University of Minnesota Twin Cities; George Washington University
摘要：We provide new evidence that firms appear to manage long-run earnings upward in order to manage rank and file employees' perceptions of employment security. In particular, we exploit exogenous state-level changes in unemployment insurance benefits and test for partial unwinding of prior upward earnings management when benefits increase. Consistent with the hypothesis, we find a significant reduction in abnormal accruals, increased recognition of special items and write downs, and greater likel...
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作者：Kausar, Asad; Shroff, Nemit; White, Hal
作者单位：Nanyang Technological University; Massachusetts Institute of Technology (MIT); Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
摘要：We hypothesize that the choice to obtain a financial statement audit provides external financiers with incremental information about the firm, which helps reduce information asymmetry and financing frictions. Using a natural experiment, we show that when external financiers observe a firm's choice to voluntarily obtain an audit, the firms obtaining an audit significantly increase their debt, investment, and operating performance, and become more responsive to their investment opportunities. Fu...
