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作者：Zimmerman, Aleksandra Ally B.; Barr-Pulliam, Dereck; Lee, Joon-suk; Minutti-Meza, Miguel
作者单位：State University System of Florida; Florida State University; University of Louisville; University of Miami
摘要：Using Public Company Accounting Oversight Board (PCAOB) inspection data from 2006 to 2018, we examine the use of auditor-employed specialists in audit engagements. First, we find that the use of specialists is increasingly prevalent and related to clients' size and complex accounting estimates. Second, the use of specialists is positively associated with the incidence of audit process deficiencies (identified by PCAOB inspections) but is not associated with output-based audit-quality proxies (...
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作者：Chircop, Justin; Fabrizi, Michele; Malaspina, Patrizia; Parbonetti, Antonio
作者单位：Lancaster University; University of Padua
摘要：Mafia firms introduce distortions in the markets in which they operate, increasing the cost of doing business for peer firms. We investigate whether peers respond by increasing their tax avoidance and thus increasing funds available to compete with the Mafia firms. Using a sample of Italian anti-Mafia police actions that resulted in the removal of Mafia firms and a difference-in-differences approach, we find that peers reduce their tax avoidance following these actions. We further show that, f...
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作者：Carnes, Robert R.; Christensen, Dane M.; Madsen, Paul E.
作者单位：State University System of Florida; University of Florida; University of Oregon
摘要：Financial statement fraud generates many negative effects, including reducing people's willingness to participate in the stock market. If it also stigmatizes accounting, it may similarly adversely affect the quantity and quality of workers willing to become accountants, thereby potentially creating negative effects for years to come. We examine the impact of fraud on the labor force entering the accounting profession, which is a key input into the production of accounting information (i.e., th...
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作者：Balakrishnan, Karthik; Copat, Rafael; De La Parra, Daniela; Ramesh, K.
作者单位：Rice University; University of Texas System; University of Texas Dallas; University of North Carolina; University of North Carolina Chapel Hill
摘要：George Floyd's murder caused many firms to reveal how exposed they are to racial diversity issues. We examine investor and firm behaviors after this socially significant event to provide evidence on the valuation effects of the exposure and ensuing corporate responses. We develop a text-based measure of a firm's exposure to racial diversity issues from conference call transcripts and find that, after the murder of George Floyd, firms with diversity exposure experience a stock price decrease of...
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作者：Mahieux, Lucas; Sapra, Haresh; Zhang, Gaoqing
作者单位：Tilburg University; University of Chicago; University of Minnesota System; University of Minnesota Twin Cities
摘要：We investigate how provisioning models interact with bank regulation to affect banks' risk-taking behavior. We study an accuracy versus timeliness trade-off between an incurred loss model (IL) and an expected loss model (EL) such as current expected credit loss model or International Financial Reporting Standards 9. Relative to IL, even though EL improves efficiency by prompting earlier corrective action in bad times, it induces banks to originate either safer or riskier loans. Trading off ex ...
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作者：Zureich, Jacob
作者单位：Tilburg University
摘要：The controllability principle suggests that employees should not be held accountable for factors outside their control. This study develops novel theory to challenge that thinking. According to the theory, holding employees accountable for uncontrollable factors like peer performance can lead to improved decision-making by increasing how much employees learn from those uncontrollable factors. I expect this effect to occur because goal-focused employees only consider information that seems goal...
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作者：Duguay, Raphael; Rauter, Thomas; Samuels, Delphine
作者单位：Yale University; University of Chicago
摘要：We examine how open procurement data affect the competitiveness of award procedures and the execution of government contracts. The European Union recently made its historical procurement notices available for bulk download in a cohesive and user-friendly database. Comparing government contracts above and below EU procurement size thresholds, we find that, after the open data initiative, procurement officials are more likely to award treated contracts through open bidding. In cross-sectional an...
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作者：Chang, Wonjae; Dambra, Michael; Schonberger, Bryce; Suk, Inho
作者单位：City University of Hong Kong; State University of New York (SUNY) System; University at Buffalo, SUNY; University of Colorado System; University of Colorado Boulder; Korea University
摘要：Beginning in 2018, U.S. public firms were required to report the ratio of the chief executive officer's (CEO) compensation to their median employee's compensation in the annual proxy statement. Exploiting the staggered reporting of pay ratios, we find little evidence that total CEO compensation changes in response to pay ratio disclosure reform. However, we do find that boards significantly adjust the mix of compensation awarded by reducing the sensitivity of CEO pay to equity price changes, p...
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作者：Bird, Andrew; Karolyi, Stephen A.; Ruchti, Thomas G.
作者单位：Chapman University System; Chapman University; United States Department of the Treasury; Office of the Comptroller of the Currency; Office of Financial Research; United States Department of the Treasury
摘要：We examine the joint response to political uncertainty along two margins: changes in real activity and voluntary disclosure. We focus on within-firm variation in exposure to ex ante competitive U.S. gubernatorial elections using data on preelection poll margins and firms' state exposures. Despite real activity falling in the years leading up to a close election, we find that voluntary disclosure increases both in frequency and content, including mentions of risk in filings that reference state...
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作者：Geertsema, Paul; Lu, Helen
作者单位：University of Auckland
摘要：We use machine learning for relative valuation and peer firm selection. In out-of-sample tests, our machine learning models substantially outperform traditional models in valuation accuracy. This outperformance persists over time and holds across different types of firms. The valuations produced by machine learning models behave like fundamental values. Overvalued stocks decrease in price and undervalued stocks increase in price in the following month. Determinants of valuation multiples ident...
