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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：Lawrence, Alastair
作者单位：University of California System; University of California Berkeley
摘要：Using detailed data of individual investors, this study shows that, on average, individuals invest more in firms with clear and concise financial disclosures. The results indicate this relation is less pronounced for high frequency trading and financially-literate individuals. The study also shows that individuals' returns are increasing with clearer and more concise disclosures, implying such disclosures reduce individuals' relative information disadvantage. Together, the findings suggest imp...
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作者：Tan, Liang
作者单位：George Washington University
摘要：I examine the impact of state-contingent allocation of creditor control rights on financial reporting. Using a discontinuity analysis, I find that firms' financial reporting becomes more conservative immediately after covenant violations and this effect persists for at least eight quarters. The conservatism effect is more pronounced when creditors possess greater bargaining power, when firms' operations are more volatile, and when creditors put Chief Restructuring Officers in place. My finding...
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作者：Costello, Anna M.
作者单位：Massachusetts Institute of Technology (MIT)
摘要：Using a sample of long-term supply contracts collected from SEC filings, I show that hold-up concerns and information asymmetry are important determinants of contract design. Asymmetric information between buyers and suppliers leads to shorter term contracts. However, when longer duration contracts facilitate the exchange of relationship specific assets, the parties substitute short-term contracts with financial covenants in order to reduce moral hazard. Covenant restrictions are more prevalen...
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作者：Chuk, Elizabeth; Matsumoto, Dawn; Miller, Gregory S.
作者单位：University of Southern California; University of Washington; University of Washington Seattle; University of Michigan System; University of Michigan
摘要：This paper examines the characteristics of management forecasts available on Thomson First Call's Company Issued Guidance (CIG) database relative to a sample of forecasts hand-collected through a search of company press releases. Due to the significantly lower cost of using CIG (relative to hand-collecting data), academics have increasingly relied on this database as a source of management forecasts. However, it is important for researchers to consider the properties of this database (such as ...
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作者：Cheng, Mei; Dhaliwal, Dan; Zhang, Yuan
作者单位：University of Arizona; Korea University; University of Texas System; University of Texas Dallas
摘要：We provide more direct evidence on the causal relation between the quality of financial reporting and investment efficiency. We examine the investment behavior of a sample of firms that disclosed internal control weaknesses under the Sarbanes-Oxley Act. We find that prior to the disclosure, these firms under-invest (over-invest) when they are financially constrained (unconstrained). More importantly, we find that after the disclosure, these firms' investment efficiency improves significantly. ...
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作者：Denis, David J.; Xu, Jin
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh; Purdue University System; Purdue University
摘要：The use of equity incentives is significantly greater in countries with stronger insider trading restrictions, and these higher incentives are associated with higher total pay. These findings are robust to alternative definitions of insider trading restrictions and enforcement, and to panel regressions with country fixed effects. We also find significant increases in top executive pay and the use of equity-based incentives in the period immediately following the initial enforcement of insider ...
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作者：Allen, Abigail; Ramanna, Karthik
作者单位：Harvard University
摘要：We investigate the effect of standard setters in standard setting. We examine how certain professional and political characteristics of FASB members and SEC commissioners predict the accounting reliability and relevance of proposed standards. Notably, we find FASB members with backgrounds in financial services are more likely to propose standards that decrease reliability and increase relevance, partly due to their tendency to propose fair-value methods. We find opposite results for FASB membe...
