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作者：Chakrabarty, Bidisha; Moulton, Pamela C.
作者单位：Cornell University; Saint Louis University
摘要：We identify a new channel - market makers' attention constraints - through which earnings announcements for one stock affect the liquidity of other stocks. When some stocks handled by a designated market maker have earnings announcements, liquidity is lower for non-announcement stocks handled by the same market maker, with the largest effects coming from earnings surprises and stocks with high earnings response coefficients. Half of the liquidity decline reflects attention constraints binding ...
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作者：Dutta, Sunil; Fan, Qintao
作者单位：University of California System; University of California Berkeley
摘要：We study a setting wherein a divisional manager undertakes personally costly effort to improve the profitability of an investment project. The manager's choice of innovation effort is subject to a holdup problem because of the ex post opportunism on the part of headquarters. We analyze and contrast the performance of centralized and delegated forms of investment decision-making. We find that delegation improves the manager's innovation incentives. We identify conditions for each of the two org...
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作者：Laux, Volker; Stocken, Phillip C.
作者单位：Dartmouth College; University of Texas System; University of Texas Austin
摘要：We examine how the threat of litigation affects an entrepreneur's reporting behavior when the entrepreneur (i) can misrepresent his privately observed information, (ii) pays legal damages out of his own pocket, and (iii) is optimistic about the firm's prospects relative to investors. We find higher expected legal penalties imposed on the culpable entrepreneur do not always cause the entrepreneur to be more cautious but instead can increase misreporting. We highlight how this relation depends c...
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作者：Masulis, Ronald W.; Wang, Cong; Xie, Fei
作者单位：George Mason University; Chinese University of Hong Kong; University of New South Wales Sydney
摘要：We examine the benefits and costs associated with foreign independent directors (FIDs) at U.S. corporations. We find that firms with FIDs make better cross-border acquisitions when the targets are from the home regions of FIDs. However, FIDs also display poor board meeting attendance records and are associated with a greater likelihood of intentional financial misreporting, higher CEO compensation, and a lower sensitivity of CEO turnover to performance. Finally, firms with FIDs exhibit signifi...
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作者：Ettredge, Michael; Huang, Ying; Zhang, Weining
作者单位：University of Louisville; University of Kansas
摘要：We examine whether Basu's (1997) differential timeliness metric and the related C-Score metric are effective in detecting predictable differences in conservatism surrounding corrections of overstated earnings. Cross-sectional and time-series analyses, employing 2132 firms making restatements during 1999-2005, suggest Basu-based metrics capture variation in conservatism. Further, we find that increases in conservatism following restatements are contingent on improvements in corporate governance...
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作者：Hou, Kewei; van Dijk, Mathijs A.; Zhang, Yinglei
作者单位：University System of Ohio; Ohio State University; Erasmus University Rotterdam - Excl Erasmus MC; Erasmus University Rotterdam; Chinese University of Hong Kong
摘要：We use earnings forecasts from a cross-sectional model to proxy for cash flow expectations and estimate the implied cost of capital (ICC) for a large sample of firms over 1968-2008. The earnings forecasts generated by the cross-sectional model are superior to analysts' forecasts in terms of coverage, forecast bias, and earnings response coefficient. Moreover, the model-based ICC is a more reliable proxy for expected returns than the ICC based on analysts' forecasts. We present evidence on the ...
