-
作者：Core, J; Guay, W
作者单位：University of Pennsylvania
摘要：We predict and find that firms use annual grants of options and restricted stock to CEOs to manage the optimal level of equity incentives. We model optimal equity incentive levels for CEOs, and use the residuals from this model to measure deviations between CEOs' holdings of equity incentives and optimal levels. We find that grants of new incentives from options and restricted stock are negatively related to these deviations. Overall, our evidence suggests that firms set optimal equity incenti...
-
作者：Ke, B; Petroni, K; Safieddine, A
作者单位：Michigan State University; Michigan State University's Broad College of Business; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
摘要：We investigate the relation between CEO compensation and accounting performance measures as a function of ownership structure. We use publicly-held property-liability insurers to consider the relation for firms with diffusely-held ownership and use privately-held property-liability insurers to consider the relation for firms with closely-held ownership. We find a significant positive association between return on assets and the level of compensation for publicly-held insurers. Consistent with ...
-
作者：Aboody, D; Barth, ME; Kasznik, R
作者单位：Stanford University; University of California System; University of California Los Angeles
摘要：We find, as predicted, that upward revaluations of fixed assets by UK firms are significantly positively related to changes in future performance, measured by operating income and cash from operations, indicating revaluations reflect asset value changes. Current year revaluations (revaluation balances) also are significantly positively related to annual returns (prices). Relations between revaluations and future performance and prices are weaker for higher debt-to-equity ratio firms, indicatin...
-
作者：DeFond, ML; Park, CW
作者单位：University of Southern California; Hong Kong University of Science & Technology
摘要：Relative performance evaluation (RPE) is likely to improve boards of director's ability to identify unfit CEOs, and competition is likely to enhance the usefulness of RPE. Consistent with our hypotheses, the frequency of CEO turnover is greater in highly competitive industries than in less competitive industries. We also find that RPE-based (firm-specific) accounting measures are more closely associated with CEO turnover in high (low) competition industries than in low (high) competition indus...
-
作者：Lee, CWJ; Liu, CW; Wang, TC
作者单位：Tulane University; Yuan Ze University; National Taiwan University; Hong Kong University of Science & Technology
摘要：This paper adapts Dye's (1995) model to evaluate the effects of the 150-hour rule on the audit market. Incorporating the auditors' education as a joint input with the audit effort for determining the audit quality, we show that the audit fee is higher, pre-rule CPAs are better off, and audit clients are worse off as results of the Rule. Additionally, more pre-rule CPAs elect to enter the audit market. Some less wealthy post-rule CPAs who would otherwise get into the audit market choose not to....
-
作者：Core, JE; Schrand, CM
作者单位：University of Pennsylvania
摘要：We use an option pricing framework to model equity valuation when firms face costs associated with violating accounting-based debt covenants. Our model shows that the value of equity depends on two factors: the economic value of the firm and the probability that the firm violates the covenant. Consistent with the model's prediction that the 'covenant' effect is greatest for firms near covenant violation, we find that responses to earnings that are less informative about future cash flows (loss...
-
作者：Ahmed, AS; Takeda, C; Thomas, S
作者单位：Syracuse University; State University System of Florida; University of Florida
摘要：This paper exploits the 1990 change in capital adequacy regulations to construct more powerful tests of capital and earnings management effects on bank loan loss provisions. We find strong support for the hypothesis that loan loss provisions are used for capital management. We do not find evidence of earnings management via loan loss provisions. We also document the reasons for the conflicting results on these effects observed in prior studies. Additionally, we find that loan loss provisions a...
-
作者：Beatty, A
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
摘要：Guay (1998, Journal of Accounting and Economics, this issue) addresses potential endogeneity biases in cross-sectional studies of derivative use by examining derivative initiations. When derivatives are only part of a risk-management strategy, tests comparing derivative users versus non-users may be biased. One solution to this difficult problem is to examine an exogenous change in derivative use. Guay (1998) identifies a recent reduction in transactions costs as a potential exogenous shock to...
-
作者：Hayes, RM; Schaefer, S
作者单位：Northwestern University
摘要：We identify manager/firm separations where managers quit for a new job and study abnormal returns associated with these events. Applying analyses from labor economics, we argue that the average ability of managers who resign for a similar position at another firm should be higher than that of managers who die suddenly. Controlling for age and tenure, we find that firms losing managers to other firms experience an average abnormal return of -1.51%; compared to +3.82% for firms whose managers di...
