2011

最新文章

• Accounting standards and debt covenants: Has the balance sheet approach led to a decline in the use of balance sheet covenants? AI翻译
  作者：Demerjian, Peter R.
  作者单位：Emory University
  摘要：Recent years have seen a sharp decline in the use of balance sheet-based covenants in private debt contracts. I hypothesize that changes in accounting standards can explain part of this decline. Standard setting has shifted towards a balance sheet approach, which I predict has made the balance sheet less useful for contracting. I measure the effect of the balance sheet approach on specific borrowers using a volatility ratio. I find that borrowers with greater volatility ratios are less likely ...
• Consistency in meeting or beating earnings expectations and management earnings forecasts AI翻译
  作者：Kross, William J.; Ro, Byung T.; Suk, Inho
  作者单位：Purdue University System; Purdue University; State University of New York (SUNY) System; University at Buffalo, SUNY; Yonsei University
  摘要：This paper provides evidence that firms that have consistently met or beaten analysts' earnings expectations (MBE) provide more frequent bad news management forecasts than firms with no established string of MBE, particularly when existing analyst forecasts are optimistic. This suggests that firms with a consistent MBE record are more likely to guide analysts' expectations downward to avoid breaking the consistency. Subsequent analyst forecast revisions following bad news management forecasts ...
• Pension plan accounting estimates and the freezing of defined benefit pension plans AI翻译
  作者：Comprix, Joseph; Muller, Karl A., III
  作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; Syracuse University
  摘要：This study provides evidence that, when hard freezing their defined benefit pension plans, employers select downward biased accounting assumptions to exaggerate the economic burden of their benefit plans. Downward biased expected rates of return and discount rates allow managers to increase reported pension expenses and, for discount rates, allow managers to increase reported pension liabilities. We find that prior to the Sarbanes-Oxley Act, both rates are downward biased when firms freeze the...
• Do delays in expected loss recognition affect banks' willingness to lend? AI翻译
  作者：Beatty, Anne; Liao, Scott
  作者单位：University System of Ohio; Ohio State University; University of Toronto
  摘要：Banks can decrease their future capital inadequacy concerns by reducing lending. The capital crunch theory predicts that lending is particularly sensitive to regulatory capital constraints during recessions, when regulatory capital declines and external-financing frictions increase. Regulators and policy makers argue that the current loan loss provisioning rules magnify this pro-cyclicality. Exploiting variation in the delay in expected loss recognition under the current incurred loss model, w...
• Hometown advantage: The effects of monitoring institution location on financial reporting discretion AI翻译
  作者：Ayers, Benjamin C.; Ramalingegowda, Santhosh; Yeung, P. Eric
  作者单位：University System of Georgia; University of Georgia
  摘要：We examine the impact of institutional ownership on financial reporting discretion, focusing on whether the impact varies with institutions' cost of acquiring monitoring information. Using geographic distance between the firm and the institutional investor as a proxy for the cost of acquiring monitoring information, we find that corporate managers are less likely to use financial reporting discretion in the presence of local monitoring institutions than distant monitoring institutions. We also...
• Panacea, Pandora's box, or placebo: Feedback in bank mortgage-backed security holdings and fair value accounting AI翻译
  作者：Bhat, Gauri; Frankel, Richard; Martin, Xiumin
  作者单位：Washington University (WUSTL)
  摘要：We examine the relation between bank holdings of mortgage-backed securities (MBS) and MBS prices. Theory suggests feedback between MBS holdings and underlying asset markets can be aggravated by mark-to-market accounting. We measure feedback by the relation between asset returns and the changes in bank MBS holdings. Consistent with the existence of feedback effects related to mark-to-market, we find that for banks with high MBS, more nonperforming loans, and lower total capital ratio, changes i...
• The quality of accounting information in politically connected firms AI翻译
  作者：Chaney, Paul K.; Faccio, Mara; Parsley, David
  作者单位：Purdue University System; Purdue University; Vanderbilt University
  摘要：We document that the quality of earnings reported by politically connected firms is significantly poorer than that of similar non-connected companies. Our results are not due to firms with ex-ante poor earnings quality establishing connections more often. Instead, our results suggest that, because of a lesser need to respond to market pressures to increase the quality of information, connected companies can afford disclosing lower quality accounting information. In particular, lower quality re...
• The impact of mandatory IFRS adoption on foreign mutual fund ownership: The role of comparability AI翻译
  作者：DeFond, Mark; Hu, Xuesong; Hung, Mingyi; Li, Siqi
  作者单位：University of Southern California; University of Oregon; Santa Clara University
  摘要：Proponents of IFRS argue that mandating a uniform set of accounting standards improves financial statement comparability that in turn attracts greater cross-border investment. We test this assertion by examining changes in foreign mutual fund investment in firms following mandatory IFRS adoption in the European Union in 2005. We measure improved comparability as a credible increase in uniformity, defined as a large increase in the number of industry peers using the same accounting standards in...
• The effect of cash flow forecasts on accrual quality and benchmark beating AI翻译
  作者：McInnis, John; Collins, Daniel W.
  作者单位：University of Iowa; University of Texas System; University of Texas Austin
  摘要：When analysts provide forecasts of both earnings and operating cash flow, they also implicitly provide a forecast of total operating accruals. We posit that this increases the transparency and the expected costs of accrual manipulations used to manage earnings. As a consequence, we predict and find that accrual quality improves and firms' propensity to meet or beat earnings benchmarks declines following the provision of cash flow forecasts. We also predict and find that firms turn to other ben...
• Are voluntary disclosures that disavow the reliability of mandated fair value information informative or opportunistic? AI翻译
  作者：Blacconiere, Walter G.; Frederickson, James R.; Johnson, Marilyn F.; Lewis, Melissa F.
  作者单位：Utah System of Higher Education; University of Utah; Indiana University System; Indiana University Bloomington; IU Kelley School of Business; Michigan State University; Michigan State University's Broad College of Business
  摘要：One consequence of the shift to fair value measurement is the emergence of voluntary disclosures in audited financial statements that question the reliability of mandated fair value information. We refer to these disclosures as reliability disavowals. We examine stock option volatility estimates disclosed under SFAS 123 and test whether disavowals are informative (opportunistic) by examining whether ex ante firm characteristics, forecast bias, and prediction difficulty are consistent with info...