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作者：Larcker, David F.; So, Eric C.; Wang, Charles C. Y.
作者单位：Stanford University; Massachusetts Institute of Technology (MIT); Harvard University
摘要：Firms with central boards of directors earn superior risk-adjusted stock returns. A long (short) position in the most (least) central firms earns average annual returns of 4.68%. Firms with central boards also experience higher future return-on-assets growth and more positive analyst forecast errors. Return prediction, return-on-assets growth, and analyst errors are concentrated among high growth opportunity firms or firms confronting adverse circumstances, consistent with boardroom connection...
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作者：Banker, Rajiv D.; Byzalov, Dmitri; Chen, Lei (Tony)
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University; Peking University
摘要：Central to the economic theory of sticky costs is the proposition that managers consider adjustment costs when changing resource levels. We test this proposition using employment protection legislation (EPL) provisions in different countries as a proxy for labor adjustment costs. Using a large sample of firms in 19 OECD countries during 1990-2008, we find that the degree of cost stickiness at the firm level varies with the strictness of the country-level EPL provisions. This finding supports t...
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作者：Allen, Eric J.; Larson, Chad R.; Sloan, Richard G.
作者单位：University of Southern California; University of Houston System; University of Houston; University of California System; University of California Berkeley
摘要：We show that accruals consist of at least two distinct underlying processes, one with positive serial correlation and the other with negative serial correlation. We also find that the accrual reversals characterizing the negatively serially correlated process are predominantly good accruals that correctly anticipate fluctuations in working capital. Accrual estimation error is the least persistent component of earnings, while accruals relating to firm growth are less persistent than cash flows....
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作者：Dichev, Ilia D.; Graham, John R.; Harvey, Campbell R.; Rajgopal, Shiva
作者单位：Emory University; Duke University; National Bureau of Economic Research
摘要：We provide insights into earnings quality from a survey of 169 CFOs of public companies and in-depth interviews of 12 CFOs and two standard setters. CFOs believe that (i) above all, high-quality earnings are sustainable and repeatable; specific characteristics include consistent reporting choices, backing by actual cash flows, and absence of one-time items and long-term estimates; (ii) about 50% of earnings quality is driven by non-discretionary factors such as industry and macro-economic cond...
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作者：Alexander, Cindy R.; Bauguess, Scott W.; Bernile, Gennaro; Lee, Yoon-Ho Alex; Marietta-Westberg, Jennifer
作者单位：U.S. Securities & Exchange Commission (SEC); Singapore Management University; University of Southern California
摘要：We use survey responses from 2,901 corporate insiders to assess the costs and benefits of compliance with Section 404 of the Sarbanes-Oxley Act. The majority of respondents recognize compliance benefits, but they do not perceive these benefits to outweigh the costs, on average. This is particularly true among smaller companies where the start-up costs are proportionately larger. However, the perceived efficiency of compliance increased with auditor attestations, years of compliance experience,...
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作者：Gerakos, Joseph; Lang, Mark; Matfett, Mark
作者单位：University of Chicago; University of North Carolina; University of North Carolina Chapel Hill
摘要：We investigate the experience of companies listing and raising capital on the AIM, which is privately regulated and relies on Nominated Advisors who compete for listings and provide regulatory oversight. AIM firms underperform newly listed firms on traditionally regulated exchanges based on post-listing returns and failure rates, comparable to firms listing on the unregulated US Pink Sheets, and exhibit abnormally high pre-listing accruals and post-listing reversals. High quality auditors and ...
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作者：Gormley, Todd A.; Matsa, David A.; Milbourn, Todd
作者单位：University of Pennsylvania; Northwestern University; Washington University (WUSTL)
摘要：This paper examines the two-way relationship between managerial compensation and corporate risk by exploiting an unanticipated change in firms' business risks. The natural experiment provides an opportunity to examine two classic questions related to incentives and risk-how boards adjust incentives in response to firms' risk and how these incentives affect managers' risk-taking. We find that, after left-tail risk increases, boards reduce managers' exposure to stock price movements and that les...
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作者：Armstrong, Christopher S.
作者单位：University of Pennsylvania
摘要：Gormley, Matsa, and Milbourn (in this issue) examine the design and causal effects of CEOs' equity portfolio incentives on firm risk in a novel research setting in which certain firms experience a large exogenous shock that increases their left-tail risk and reduces their investment opportunities. Gormley et al. find that boards and CEOs both make adjustments to CEOs' equity portfolios following the shock. They also find that CEOs with more convex equity portfolios (i.e., Vega) prior to the sh...
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作者：Barth, Mary E.; Konchitchki, Yaniv; Landsman, Wayne R.
作者单位：Stanford University; University of California System; University of California Berkeley; University of North Carolina; University of North Carolina Chapel Hill
摘要：We provide evidence that firms with more transparent earnings enjoy a lower cost of capital. We base our earnings transparency measure on the extent to which earnings and change in earnings covary contemporaneously with returns. We find a significant negative relation between our transparency measure and subsequent excess and portfolio mean returns, and expected cost of capital, even after controlling for previously documented determinants of cost of capital. (C) 2013 Elsevier B.V. All rights ...
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作者：Barth, Mary E.; Israeli, Doron
作者单位：Stanford University; Reichman University
摘要：We discuss Mandatory IFRS Reporting and Changes in Enforcement by Christensen, Hail, and Leuz (CHL, in this issue). We begin by discussing CHL in the context of prior literature, and subsequently discuss the research design, results, and inferences. CHL seeks to contribute to the literature by disentangling the liquidity benefits of changes in accounting standards from those of changes in enforcement. Taken at face value, we believe that the evidence in CHL suggests that both change in enforce...
