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作者：Raghunandan, Aneesh
作者单位：University of London; London School Economics & Political Science
摘要：I study whether firms that receive targeted U.S. state-level subsidies are more likely to subsequently engage in corporate misconduct. I find that firms are more likely to engage in misconduct in subsidizing states, but not in other states that they operate in, after receiving state subsidies. Using data on both federal and state enforcement actions, and exploiting the legal principle of dual sovereignty for identification, I show that this finding reflects an increase in the underlying rate o...
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作者：Chen, Hui; Liang, Pierre Jinghong; Petrov, Evgeny
作者单位：University of Zurich; Carnegie Mellon University
摘要：We examine how financial disclosure policy affects a firm manager's strategy to innovate within a two-period bandit problem featuring two production methods: an old method with a known probability of success, and a new method with an unknown probability. Exploring the new method in the first period provides the manager with decision-useful information for the second period, thus creating a real option that is unavailable under exploiting the old known production method. Voluntary disclosure of...
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作者：Chen, Jade Huayu
作者单位：Loyola Marymount University
摘要：I examine whether employee-initiated lawsuits against an audit office adversely affect its ability to attract high-quality talent and deliver quality audits. I posit that employee lawsuits erode prospective employees' perceptions of an office, diminishing their willingness to join. Using a comprehensive data set of individual auditor profiles, I find a decline in the quality of newly hired auditors following an employee lawsuit. Cross-sectionally, the adverse effect of employee lawsuits on tal...
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作者：Xin, Xiangang; Yeung, P. Eric; Zhang, Zilong
作者单位：City University of Hong Kong; Cornell University; Zhejiang University
摘要：This study examines whether mandatory increase in reporting frequency exacerbates agency problems. Utilizing the setting of the 2004 SEC mandate on increased reporting frequency of mutual fund holdings, we show that increased reporting frequency elevates window dressing (buying winners or selling losers shortly before the end of the reporting period). This effect is driven by low-skill fund managers' incentives to generate mixed signals. Funds managed by low-skill managers experience lower ret...
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作者：Breuer, Matthias; Labro, Eva; Sapra, Haresh; Zakolyukina, Anastasia A.
作者单位：Columbia University; University of North Carolina; University of Chicago
摘要：Formal theory and empirical research are complementary in building and advancing the body of knowledge in accounting in order to understand real-world phenomena. We offer thoughts on opportunities for empiricists and theorists to collaborate, build on each other's work, and iterate over models and data to make progress. For empiricists, we see room for more descriptive work, more experimental work on testing formal theories, and more work on quantifying theoretical parameters. For theorists, w...
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作者：Bouwens, Jan; Hofmann, Christian; Schwaiger, Nina
作者单位：University of Amsterdam; University of Munich
摘要：We explore how a supervisor's hierarchical rank affects the extent to which employees' targets reflect their past performance. Literature documents that supervisors do not fully ratchet targets for past performance, arguably because the commitment not to penalize successful employees with more difficult targets alleviates the severity of the ratchet effect. We argue that commitment is less credible in organizational hierarchies where a middle manager sets employees' targets. Using data from an...
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作者：Zhang, Yue
作者单位：City University of New York (CUNY) System
摘要：This paper examines the role of peer firm disclosures in shaping corporate research and development (R&D) investments. Drawing on models of two-stage R&D races, I hypothesize that a firm could be either deterred or encouraged by peer disclosure of interim R&D success, depending on peer firms' R&D strength in the race. Using granular, project-level data on clinical trials in the drug development process, I find that a firm's R&D investments in a specific therapeutic area are deterred by disclos...
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作者：Guo, Rui; Tian, Xiaoli (Shaolee)
作者单位：Xiamen University; Georgetown University
摘要：Using the public release of comment letters on EDGAR to capture a regime shift toward regulatory transparency, we examine whether an increase in transparency affects regulators' effort and work performance. We find that the SEC staff reviews more filings and more documents per filing following the disclosure regime shift. These effects are incrementally stronger for firms with comment letters that are expected to attract greater investor or public monitoring. Furthermore, under the new regime,...
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作者：Banerjee, Shantanu; Dasgupta, Sudipto; Shi, Rui; Yan, Jiali
作者单位：Lancaster University; Chinese University of Hong Kong; University of Exeter; University of Liverpool
摘要：We show that information complementarities play an important role in the spillover of transparency shocks. We exploit the revelation of financial misconduct by S&P 500 firms, and in a Stacked Difference-in-Differences design, find that the implied cost of capital increases for close industry peers of the fraudulent firms relative to distant industry peers. The spillover effect is particularly strong when the close peers and the fraudulent firm share common analyst coverage and common instituti...
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作者：Gu, Lifeng; Xie, Jin
作者单位：Southern University of Science & Technology; Yeshiva University; Peking University; Peking University Shenzhen Graduate School (PKU Shenzhen)
摘要：Firms' inflexibility in adjusting output prices to economic shocks exacerbates information asymmetry with respect to firms' profits, but public information on firms' cost structure mitigates this problem. We construct a novel form of public information from economic statistics disclosed by the government and find that such public information significantly reduces inflexible-price firms' bid-ask spreads, the probability of informed trading, and analyst forecast dispersions, but these results do...
