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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...
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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...
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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...
