-
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...
-
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...
-
作者：Hilary, Gilles; Hsu, Charles
作者单位：Hong Kong University of Science & Technology; INSEAD Business School
摘要：We examine whether attribution bias leads managers who have experienced short-term forecasting success to become overconfident in their ability to forecast future earnings. Importantly, this form of overconfidence is endogenous and dynamic. We also examine the effect of this cognitive bias on the managerial credibility. Consistent with the existence of dynamic overconfidence, managers who have predicted earnings accurately in the previous four quarters are less accurate in their subsequent ear...
