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作者：Afrin, Farzana; Kim, Jinhwan; Roychowdhury, Sugata; Yost, Benjamin P.
作者单位：California State University System; California State University Fullerton; Stanford University; Northwestern University; Boston College
摘要：We explore whether firms internalize the product market concerns of their economically linked peers by examining merger and acquisition decisions in the context of customer-supplier relations. Given the extensive transfer of capital, knowledge, and information between merging parties, we hypothesize that customers' competition concerns discourage their suppliers from engaging in vertically conflicted transactions (i.e., acquisitions of their customers' rivals or suppliers to those rivals). Con...
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作者：Ciconte, William A.; Leiby, Justin; Willekens, Marleen
作者单位：University of Illinois System; University of Illinois Urbana-Champaign; KU Leuven; BI Norwegian Business School
摘要：Audit theory and regulation assumes that auditors' commercial motivation threatens audit quality. In this registered report, we use data from two Big Four firms in the Netherlands and provide empirical evidence on the relation between auditors' commercial motivation and (1) compensation, (2) total audit effort, and (3) audit quality. We proxy commercial motivation as the time that individual auditors report allocating to commercial activities. We hypothesize that auditors' commercial effort is...
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作者：Ewertz, Jonas; Knickrehm, Charlotte; Nienhaus, Martin; Reichmann, Doron
作者单位：Ruhr University Bochum; Goethe University Frankfurt
摘要：We examine the usefulness of machine learning approaches for measuring vocal tone in corporate disclosures. We document a substantial mismatch between the widely adopted actor-based training data underlying these approaches and speech in corporate disclosures. We find that existing models achieve near-perfect vocal tone classification within their training domain. However, when tested on actual executive speech during conference calls, their performance declines to chance levels. We thus intro...
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作者：Tian, Xuan; Yan, Jiawen; Zuo, Luo
作者单位：Tsinghua University; National University of Singapore
摘要：We investigate whether shared auditors promote the dissemination of innovative knowledge among their clients, thereby fostering follow-on innovation. We find that a company cites more patents from another company when they are audited by the same audit office. To address concerns about potential confounding factors stemming from commonalities in the fundamentals of the two companies, we leverage a quasi-exogenous shock to auditor sharing: the demise of Arthur Andersen and the subsequent increa...
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作者：Bastiaansen, Ilona; Lerman, Alina; Murphy, Frank; Vyas, Dushyant
作者单位：University of Notre Dame; University of Connecticut; University of Toronto
摘要：Stakeholders in the Chapter 11 reorganization process face significant information uncertainty about the post-emergence prospects of the firm. The U.S. Bankruptcy Code requires a debtor to provide a disclosure statement containing adequate information about its financial status and a proposed reorganization plan but stops short of rigidly defining the adequacy standard. We document the heterogeneity in disclosure statement information across 16 distinct attributes and examine the variation in ...
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作者：Chen, Qi; Vashishtha, Rahul; Wang, Shuyan
作者单位：Duke University; University of Minnesota System; University of Minnesota Twin Cities
摘要：Using a large sample of U.S. commercial banks from 1994 to 2019, we find that loan fair values are highly relevant for depositor decision making. A one-standard-deviation decrease in loan fair value performance is associated with more than 10% lower uninsured deposit flows than the sample average. Information in fair values about loan credit quality is quite limited and cannot account for the bulk of the relevance. Instead, consistent with models of bank fragility, the relevance seems to stem ...
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作者：Goyal, Vidhan K.; Urban, Daniel; Zhao, Wenting
作者单位：Hong Kong University of Science & Technology; Erasmus University Rotterdam; Erasmus University Rotterdam - Excl Erasmus MC; Technical University of Munich
摘要：We study how stock index inclusion affects corporate financing using a global sample of 198 index events-primarily new index launches-across 21 markets. Firms added to indexes issue more public debt but not equity, leading to a sustained increase in leverage. Inclusion draws greater attention from analysts and the media and increases the likelihood of receiving credit ratings. As a result, indexed firms benefit from more liquid bond markets and lower yield spreads, prompting greater reliance o...
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作者：Sherwood, Matthew G.
作者单位：University of Massachusetts System; University of Massachusetts Amherst
摘要：Auditors frequently outsource audit work to offshore Shared Service Centers (SSCs) to reduce costs and ease the workload burdens of audit team members. However, concerns persist about whether these benefits come at the expense of audit quality. Using proprietary audit engagement-level data, I evaluate whether greater SSC usage by Big 4 audit teams has an association with either, or both, audit quality and audit costs. I find that SSC usage is nearly universal in Big 4 audits, with the percenta...
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作者：Cuny, Christine; Mehta, Mihir N.; Zhao, Wanli
作者单位：New York University; University of Michigan System; University of Michigan; Bocconi University
摘要：Substantial evidence suggests that regulatory agencies in the United States can be captured by the politicians who oversee them. We provide novel evidence of a federal agency in which capture is limited: the United States Patent and Trademark Office. Although patent applications from politically connected applicants are slightly more likely to be approved despite being of lower ex post quality, additional analyses suggest these outcomes are not indicative of capture. In particular, the disclos...
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作者：Nguyen, Trung; Raghunandan, Aneesh; Scherf, Alexandra
作者单位：Federal Reserve System - USA; Federal Reserve Bank - Richmond; Yale University; University of London; London School Economics & Political Science
摘要：We study whether federal judges' personal exposure to financial fraud affects their professional behavior, in the form of sentencing outcomes in white-collar cases. Following the methodology outlined in our registered report, we construct a novel measure of financial fraud exposure based on judges' direct shareholdings in firms that commit financial fraud. Using this measure, we exploit the random assignment of cases to judges to examine whether judges exposed to fraud in one firm are (1) less...
