-
作者：Devos, Erik; Elliott, William B.; Warr, Richard S.
作者单位：University of Texas System; University of Texas El Paso; University System of Ohio; John Carroll University; North Carolina State University
摘要：Decades of research confirm that, on average, stock split announcements generate positive abnormal returns. In our sample, 80% of CEO stock option grants are timed to occur on or before the split announcement date. With the average market-adjusted announcement return of 3.1%, awarding the grant before the split announcement results in an average gain per CEO-grant of $451,748. We find additional evidence consistent with timing of CEO stock trading around the split announcement. In the case of ...
-
作者：Ghosh, Aloke (Al); Tang, Charles Y.
作者单位：City University of New York (CUNY) System; Baruch College (CUNY); Pace University
摘要：We analyze audit fees and audit risk to extract auditors' assessment of family-firm's financial reporting quality. Relative to non-family firms, we find that auditors charge family firms significantly less, and the fee difference shrinks in magnitude when family firms have high audit risk. Using constructs for audit risk and audit effort, we show that family firms have lower audit risk, and that their auditors work less to provide assurance. Our findings suggest that superior reporting quality...
-
作者：Koh, Ping-Sheng; Reeb, David M.
作者单位：Hong Kong University of Science & Technology; National University of Singapore
摘要：We investigate whether missing R&D expenditures in financial statements indicates a lack of innovation activity. Patent records reveal that 10.5% of missing R&D firms file and receive patents, which is 14 times greater than zero R&D firms. Pseudo-Blank R&D firms (missing R&D firms with patent activity) demonstrate patent filings analogous to the bottom 90-95% of the positive R&D population. Multivariate difference-in-differences tests indicate that Pseudo-Blank R&D firms are more likely to rep...
-
作者：Armstrong, Christopher S.; Blouin, Jennifer L.; Jagolinzer, Alan D.; Larcker, David F.
作者单位：University of Pennsylvania; University of Colorado System; University of Colorado Boulder; Stanford University
摘要：We examine the link between corporate governance, managerial incentives, and corporate tax avoidance. Similar to other investment opportunities that involve risky expected cash flows, unresolved agency problems may lead managers to engage in more or less corporate tax avoidance than shareholders would otherwise prefer. Consistent with the mixed results reported in prior studies, we find no relation between various corporate governance mechanisms and tax avoidance at the conditional mean and me...
-
作者：Haggard, K. Stephen; Howe, John S.; Lynch, Andrew A.
作者单位：Missouri State University; University of Missouri System; University of Missouri Columbia; State University of New York (SUNY) System; Binghamton University, SUNY
摘要：We examine the information environments of firms following large, non-recurring charges (baths). We test competing hypotheses about the consequences of a bath a bath either improves the information environment (the transparency hypothesis) or degrades it (the opacity hypothesis). Difference-in-differences analysis suggests that after a bath (I) earnings become smoother, (2) firm-level information asymmetry decreases, and (3) stock returns become more responsive to unexpected earnings. We inter...
-
作者：Marinovic, Ivan; Sridhar, Sri S.
作者单位：Stanford University; Northwestern University
摘要：This paper studies two disclosure regimes when a firm with superior private information must rely on a strategic certifier to disclose credibly its prospects. In the ex ante (ex post) disclosure regime, the firm must decide on whether to hire the certifier before (after) observing the certifier's noisy assessment. Endogenously determined certification fees can actually cause the disclosure probability to decrease in disclosure precision. In the ex ante regime, favorable disclosures are more in...
