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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...
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作者：Ball, Ray
作者单位：University of Chicago
摘要：The economic role of an accounting regime is to increase welfare through its effects-in conjunction with complementary institutions-on firm and household behavior. I review three major streams of the archival literature (real effects; price effects, including value relevance; and costly contracting), in terms of what they can and cannot reveal as proxies for welfare effects. One conclusion is that the partial correlations and average effects that predominate in this literature have provided va...
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作者：Beyer, Bianca; Chaskel, Rico; Euler, Simone; Gassen, Joachim; Grosskopf, Ann-kristin; Sellhorn, Thorsten
作者单位：Aalto University; Humboldt University of Berlin; University of Munich
摘要：This paper reports the results of a field experiment investigating how attributes of carbon footprint information affect consumer choice in a large dining facility. Our hypotheses and research methods were preregistered via the Journal of Accounting Research's registration-based editorial process. Manipulating the measurement units and visualizations of carbon footprint information on food labels, we quantify effects on consumers' food choices. Treated consumers choose less carbon-intensive di...
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作者：Hofmann, Christian; Indjejikian, Raffi J.
作者单位：University of Munich; University of Michigan System; University of Michigan
摘要：We use an agency model to address the benefits and costs of transparency in a hierarchical organization in which the principal employs a manager entrusted with contracting authority and several workers, all under conditions of moral hazard. We define the principal's transparency choices as a decision to allow workers to observe their coworkers' performances (observability) and as an investment in monitoring worker performance (precision). We find that whereas precision alleviates agency confli...
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作者：Gu, Zhihui; Sun, Wei; Zhou, Frank s.
作者单位：Nankai University; Nankai University; China Agricultural University; University of Pennsylvania
摘要：Can culture explain regional differences in minority shareholder expropriation? Examining regional variation in China, we document that the influence of historical Confucian values persists, despite decades of political movements clamping down on these values, and that these values reduce minority shareholder expropriation in local public firms. The effect on minority shareholder expropriation, in part, operates through the establishment of oversight mechanisms (i.e., greater financial reporti...
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作者：Maksymov, Eldar; Peecher, Mark; Sutherland, Andrew; Weber, Joseph
作者单位：Arizona State University; Arizona State University-Tempe; University of Illinois System; University of Illinois Urbana-Champaign; Massachusetts Institute of Technology (MIT)
摘要：Auditors are expected to identify and resolve material misstatements (MMs) in management's financial statements. However, beyond the audit opinion, the audit process is opaque. To address this, we independently survey 462 audit partners and interview 24 audit partners, CFOs, and audit committee members on how partners assess and address MM risk, resolve MMs, and the consequences of MMs. Partners identify MMs in approximately 9% (15%) of public (private) engagements and use qualitative factors ...
