-
作者：Gregoire, Vincent; Martineau, Charles
作者单位：Universite de Montreal; HEC Montreal; University of Toronto; University Toronto Scarborough
摘要：We examine the speed and mechanism of the price discovery process following earnings announcements in the after-hours market, a very illiquid trading environment. Prices reflect earnings surprises mostly through changes in quotes rather than through trades. Following positive announcement surprises, ask prices adjust quickly while bid prices are slower to adjust, and vice versa for negative surprises. Returns computed from trade prices underestimate the speed and magnitude of price reactions f...
-
作者：Infuehr, Jakob; Laux, Volker
作者单位：University of Southern Denmark; University of Texas System; University of Texas Austin
摘要：This paper studies the effects of managerial optimism on the optimal design of debt covenants. We find that managers who are more optimistic about the future success of their investment ideas provide lenders with greater control rights via tighter covenants. This is optimal for optimistic managers even though they understand that tighter covenants increase the probability of covenant violations and lead to excessive lender intervention. The broad reason for this result is that optimists wish t...
-
作者：Hribar, Paul; Mergenthaler, Richard; Roeschley, Aaron; Young, Spencer; Zhao, Chris X.
作者单位：University of Iowa; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; University of Kentucky; Arizona State University; Arizona State University-Tempe; Hong Kong Baptist University
摘要：We examine whether managers provide more voluntary disclosure when GAAP limits their reporting discretion in financial statements. We find managers are more likely to disclose non-GAAP earnings, issue more management forecasts, and provide longer yet more readable management discussion and analysis (MD&A) disclosures when GAAP limits their discretion. These effects are stronger when there is greater demand for information and better monitoring. In contrast, these effects are weaker when manage...
-
作者：Allen, Abigail; Lewis-Western, Melissa F.; Valentine, Kristen
作者单位：Brigham Young University; University System of Georgia; University of Georgia
摘要：Firm life-cycle stage reflects a firm's current strategic direction toward exploration independent of age or size. We provide evidence that young life-cycle firms are particularly vulnerable to negative innovation consequences from financial regulation but do not appear to experience any compensating financial reporting quality (FRQ) benefits. Using a generalized difference-in-differences design around Sarbanes Oxley Act of 2002 (SOX), we document a significant reduction in both research and d...
-
作者：Aslan, Hadiye
作者单位：University System of Georgia; Georgia State University
摘要：By linking sell-side equity analysts to their deed records and LinkedIn profiles, I show that analysts with higher exposure to negative wealth shocks issue more pessimistic and less accurate forecasts. The effects are stronger when analysts have higher leverage in their homes and face career concerns. I also find that stocks recommended by exposed analysts underperform those of nonexposed counterparts, by an amount that is significant and economically large in magnitude. The results remain rob...
-
作者：Bourveau, Thomas; De George, Emmanuel T.; Ellahie, Atif; Macciocchi, Daniele
作者单位：Columbia University; University of Miami; Utah System of Higher Education; University of Utah
摘要：Using an international sample of 2,113 initial coin offerings (ICOs), we explore the role of disclosure and information intermediaries in the unregulated crypto-tokens market. First, we document substantial cross-sectional variation in the voluntary disclosure practices of ventures seeking to raise capital through ICOs, such as the extent of information released in a prospectus-type document called a white paper; releasing the technical source code; and communicating through social media platf...
-
作者：Barrios, John M.
作者单位：Washington University (WUSTL); National Bureau of Economic Research; Washington University (WUSTL)
摘要：I examine the effects of occupational licensing on the quality of certified public accountants (CPAs). I exploit the staggered adoption of the 150-hour rule, which increases the educational requirements for a CPA license. The analysis shows that the rule decreases the number of entrants into the profession, reducing both low- and high-quality candidates. Labor market proxies for quality find no difference between 150-hour rule CPAs and the rest. Moreover, rule CPAs exit public accounting at si...
-
作者：Donohoe, M. P.; Jang, H.; Lisowsky, P.
作者单位：University of Illinois System; University of Illinois Urbana-Champaign; National University of Singapore; Boston University
摘要：We examine how tax cuts that benefit some firms are related to the economic performance of their direct competitors. Consistent with tax cuts decreasing the cost of initiating competitive strategies, we find that a decrease in the tax burden for only a specific group of firms in the U.S. economy (i.e., rivals) has a negative economic effect on the performance of its direct competitors not directly exposed to the same tax cut (i.e., competitors). This negative externality is stronger when the r...
-
作者：Commerford, Benjamin P.; Dennis, Sean A.; Joe, Jennifer R.; Ulla, Jenny W.
作者单位：University of Kentucky; State University System of Florida; University of Central Florida; University of Delaware; Nevada System of Higher Education (NSHE); University of Nevada Las Vegas
摘要：Audit firms are investing billions of dollars to develop artificial intelligence (AI) systems that will help auditors execute challenging tasks (e.g., evaluating complex estimates). Although firms assume AI will enhance audit quality, a growing body of research documents that individuals often exhibit algorithm aversion-the tendency to discount computer-based advice more heavily than human advice, although the advice is identical otherwise. Therefore, we conduct an experiment to examine how al...
