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作者：Beatty, Anne; Weber, Joseph; Yu, Jeff Jiewei
作者单位：Massachusetts Institute of Technology (MIT); University System of Ohio; Ohio State University
摘要：Despite the unquestionable influence of conservatism, disagreement remains about what economic demands lead to financial reporting conservatism. Research examining lenders' demands for reporting conservatism has been questioned for ignoring conservative contract modifications. We document that these modifications exist but are not ubiquitous. We find contract modifications are more likely when agency costs are higher and litigation, tax and equity demands for conservatism are lower. However, w...
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作者：Caramanis, Constantinos; Lennox, Clive
作者单位：Hong Kong University of Science & Technology; Athens University of Economics & Business
摘要：We test the effect of audit effort on earnings management using a unique database of hours worked by auditors on 9,738 audits in Greece between 1994 and 2002. When audit hours are lower, (1) abnormal accruals are more often positive than negative, (2) positive abnormal accruals are larger, and (3) companies are more likely to manage earnings upwards in order to meet or beat the zero earnings benchmark. These results persist after we control for endogeneity between audit hours and earnings mana...
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作者：Dye, Ronald A.; Sridhar, Sri S.
作者单位：Northwestern University
摘要：We develop a positive theory of accounting standards when standards generate network externalities and differ in the amount of reporting discretion, or flexibility, they provide firms. We evaluate expected value-maximizing firms' preferences between two standards regimes, rigid and flexible, as the number of firms subject to each standard varies, as the organization of the securities market varies, and as the mapping from the underlying economics of the firms' transactions to the accounting re...
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作者：Frischmann, Peter J.; Shevlin, Terry; Wilson, Ryan
作者单位：University of Washington; University of Washington Seattle; Idaho State University; University of Iowa
摘要：Commentary during the development of FASB Interpretation no. 48 suggests the interpretation could be costly for firms because new disclosure requirements could be used by the IRS to more effectively challenge uncertain tax positions. Stock returns around FIN 48 pronouncements suggest investors were not concerned about an increase in tax costs, and investors responded favorably to initial disclosures required Under FIN 48. However, we document a significant negative market reaction to subsequen...
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作者：Wittenberg-Moerman, Regina
作者单位：University of Chicago
摘要：I explore which firm and loan characteristics decrease or exacerbate information asymmetry in the trading of private debt. I find that loans of public firms, loans with an available credit rating, loans of profit firms and loans syndicated by more reputable arrangers are traded at lower bid-ask spreads, while revolvers, distressed loans and loans issued by institutional investors are associated with higher information costs. I also find that timely loss recognition reduces the bid-ask spread. ...
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作者：Sapra, Haresh
作者单位：University of Chicago
摘要：Using a model with banking and insurance sectors, Allen and Carletti show that marking-to-market interacts with liquidity pricing to exacerbate the likelihood of financial contagion between the two sectors. In this discussion, I lay out the main ingredients of their model and explain how they interact with liquidity pricing to generate financial contagion. I then discuss some limitations of their model and propose an interesting extension. (c) 2007 Elsevier B.V. All rights reserved.
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作者：Core, John E.; Guay, Wayne R.; Verdi, Rodrigo
作者单位：University of Pennsylvania; Massachusetts Institute of Technology (MIT)
摘要：In a recent and influential empirical paper, Francis, LaFond, Olsson, and Schipper (FLOS) [2005. The market pricing of accruals quality. Journal of Accounting and Economics 39, 295-327] conclude that accruals quality (AQ) is a priced risk factor. We explain that FLOS' regressions examining a contemporaneous relation between excess returns and factor returns do not test the hypothesis that AQ is a priced risk factor. We conduct appropriate asset-pricing tests for determining whether a potential...
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作者：Skinner, Douglas J.
作者单位：University of Chicago
摘要：Ramanna [2007. The implications of unverifiable fair-value accounting: evidence from the political economy of goodwill accounting, Journal of Accounting and Economics] provides interesting and novel evidence on how firms use contributions from their political action committees (PACs) to members of Congress as a means of lobbying for preferred positions on the two exposure drafts that led to SFAS-141 and SFAS-142. My discussion raises some concerns about his main conclusion: that pooling firms ...
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作者：Allen, Franklin; Carletti, Elena
作者单位：University of Pennsylvania; Goethe University Frankfurt
摘要：When liquidity plays an important role as in financial crises, asset prices may reflect the amount of liquidity available rather than the asset's future earning power. Using market prices to assess financial institutions' solvency in such circumstances is not desirable. We show that a shock in the insurance sector can cause the current market value of banks' assets to fall below their liabilities so they are insolvent. In contrast, if values based on historic cost are used, banks can continue ...
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作者：Jin, Li; Kothari, S. P.
作者单位：Massachusetts Institute of Technology (MIT); Harvard University
摘要：We examine the effect of personal taxes on CEOs' decisions to sell their equity, controlling for diversification, managerial Overconfidence, and other determinants. While CEOs frequently sell large amounts of their unrestricted firm equity, the tax burden associated with the sale significantly deters them from selling equity even after controlling for other determinants like diversification. We also find that both taxable institutional investors and CEOs respond to taxes in their selling of eq...
