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作者：Demerjian, Peter R.; Owens, Edward L.
作者单位：University of Washington; University of Washington Seattle; Emory University
摘要：We measure the probability that a borrower will violate financial covenants in private debt contracts. We analyze hand-coded data and specify standard covenant definitions using Compustat data that minimize measurement error for all individual Dealscan covenants. We use these definitions to create a measure of aggregate probability of violation, which can be used across all covenants in a loan or among covenant subsets of interest. We provide evidence that our aggregate probability measure is ...
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作者：Li, Ningzhong; Vasvari, Florin P.; Wittenberg-Moerman, Regina
作者单位：University of Texas System; University of Texas Dallas; University of London; London Business School; University of Southern California
摘要：We examine the role of dynamic covenant threshold values in syndicated loan agreements. We document that 45% of syndicated loans specify dynamic covenant thresholds in earnings-based covenants and that these changing thresholds typically become tighter over the life of a loan. We find that covenants with a tight trend provide an important signaling mechanism that meets the needs of borrowers that experience an inferior financial performance at loan initiation but expect future performance impr...
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作者：Huyghebaert, Nancy; Xu, Weidong
作者单位：KU Leuven
摘要：Investment banks and issuers of Chinese domestic IPOs became fully responsible for IPO offer prices only on June 10, 2009. Before this regulatory reform, the optimistic bias in post-IPO earnings forecasts is highly comparable across affiliated and unaffiliated analysts. Afterward, the forecasts of affiliated analysts are 33 percentage points more positively distorted on average. In the first 90 days after an IPO, this relative forecast bias even increases to 63 percentage points and enlarges f...
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作者：Guan, Yuyan; Su, Lixin (Nancy); Wu, Donghui; Yang, Zhifeng
作者单位：City University of Hong Kong; Hong Kong Polytechnic University; Chinese University of Hong Kong
摘要：We identify connected auditors as those who attended the same university as the executives of their clients. Using manually collected data from China, we find that connected auditors are more likely to issue favorable audit opinions, especially for financially distressed clients. Moreover, companies audited by connected auditors report significantly higher discretionary accruals, are more likely to subsequently restate earnings downward, and have lower earnings response coefficients. Lastly, c...
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作者：Call, Andrew C.; Kedia, Simi; Rajgopal, Shivaram
作者单位：Arizona State University; Arizona State University-Tempe; Rutgers University System; Rutgers University New Brunswick; Columbia University
摘要：We find that firms grant more rank and file stock options when involved in financial reporting violations, consistent with managements' incentives to discourage employee whistle-blowing. Violating firms grant more rank and file options during periods of misreporting relative to control firms and to their own option grants in non-violation years. Moreover, misreporting firms that grant more rank and file options during violation years are more likely to avoid whistle-blowing allegations. Althou...
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作者：Shroff, Nemit
作者单位：Massachusetts Institute of Technology (MIT)
摘要：Bernard (2016) proposes that financially constrained firms susceptible to product market predation are more likely to avoid complying with a mandatory requirement to publicly disclose financial statements. Bernard tests and finds that financially constrained private firms in Germany are less likely to disclose their financial statements despite being subject to a law requiring them to do so and interprets this evidence as consistent with predation risk affecting firms' disclosure decisions. I ...
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作者：Baldenius, Tim; Glover, Jonathan; Xue, Hao
作者单位：New York University; Columbia University
摘要：We study a dynamic multi-agent model with a verifiable team performance measure and non-verifiable individual measures. The optimal contract can be interpreted as an explicit contract that specifies a minimum bonus pool as a function of the verifiable measure and an implicit contract that gives the principal discretion to increase the size of the pool and to allocate it among the agents. To mitigate the threat of collusion, the optimal contract often converts any exogenous productive interdepe...
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作者：Guay, Wayne; Samuels, Delphine; Taylor, Daniel
作者单位：University of Pennsylvania
摘要：A growing literature documents that complex financial statements negatively affect the information environment. In this paper, we examine whether managers use voluntary disclosure to mitigate these negative effects. Employing cross-sectional and within-firm designs, we find a robust positive relation between financial statement complexity and voluntary disclosure. This relation is stronger when liquidity decreases around the filing of the financial statements, is stronger when firms have more ...
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作者：Hoitash, Rani; Hoitash, Udi; Kurt, Ahmet C.
作者单位：Bentley University; Northeastern University; Suffolk University
摘要：We examine whether chief financial officers (CFOs) with accounting backgrounds (accountant CFOs) are associated with more conservative corporate outcomes. We find that, in high-growth industries, firms with accountant CFOs invest less in research and development and capital expenditures and are less likely to engage in external financing. In low-growth industries, we find that firms with accountant CFOs exhibit greater cost efficiency. Our results are consistent with risk aversion on the part ...
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作者：Ham, Charles; Koharki, Kevin
作者单位：Washington University (WUSTL); Washington University (WUSTL)
摘要：This paper examines whether bond market participants alter their credit risk assessments of firms that appoint the corporate general counsel (GC) to senior management. GCs may place less emphasis on their gatekeeping responsibilities upon appointment to senior management, thus potentially resulting in increased firm credit risk. Using changes in firm-level credit ratings and credit default swap spreads to proxy for changes in credit risk, we find a positive association between GC promotions to...
