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作者：Defond, Mark L.; Lennox, Clive S.
作者单位：University of Southern California
摘要：We investigate whether Public Company Accounting Oversight Board (PCAOB) inspections affect the quality of internal control audits. Our research design improves on prior studies by exploiting both cross-sectional and time-series variation in the content of PCAOB inspection reports, while also controlling for audit firm and year fixed effects, effectively achieving a difference-in-differences research design. We find that when PCAOB inspectors report higher rates of deficiencies in internal con...
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作者：Minnis, Michael; Sutherland, Andrew
作者单位：University of Chicago; Massachusetts Institute of Technology (MIT)
摘要：Using a data set that records banks' ongoing requests of information from small commercial borrowers, we examine when banks use financial statements to monitor borrowers after loan origination. We find that banks request financial statements for half the loans and this variation is related to borrower credit risk, relationship length, collateral, and the provision of business tax returns, but in complex ways. The relation between borrower risk and financial statement requests has an inverted U...
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作者：Casas-Arce, Pablo; Lourenco, Sofia M.; Martinez-Jerez, F. Asis
作者单位：Arizona State University; Arizona State University-Tempe; Universidade de Lisboa; University of Notre Dame
摘要：This paper presents the results from a field experiment that examines the effects of nonfinancial performance feedback on the behavior of professionals working for an insurance repair company. We vary the frequency (weekly and monthly) and the level of detail of the feedback that the 800 professionals receive. Contrary to what we would expect if these professionals conformed to the model of the Bayesian decision maker, more (and more frequent) information does not always help improve performan...
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作者：Bozanic, Zahn; Hoopes, Jeffrey L.; Thornock, Jacob R.; Williams, Braden M.
作者单位：University System of Ohio; Ohio State University; University of North Carolina; University of North Carolina Chapel Hill; Brigham Young University; University of Texas System; University of Texas Austin
摘要：We study how public and private disclosure requirements interact to influence both tax regulator enforcement and firm disclosure. To capture IRS enforcement activities, we introduce a novel data set of IRS acquisition of firms' public financial disclosures, which we label IRS attention. We examine the implementation of two new disclosure requirements that potentially alter IRS attention: FIN 48, which increased public tax disclosure requirements, and Schedule UTP, which increased private tax d...
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作者：Hobson, Jessen L.; Mayew, William J.; Peecher, Mark E.; Venkatachalam, Mohan
作者单位：University of Illinois System; University of Illinois Urbana-Champaign; Duke University
摘要：We experimentally study the deception detection capabilities of experienced auditors, using CEO narratives from earnings conference calls as case materials. We randomly assign narratives of fraud and nonfraud companies to auditors as well as the presence versus absence of an instruction explaining that cognitive dissonance in speech is helpful for detecting deception. We predict this instruction will weaken auditors' learned tendency to overlook fraud cues. We find that auditors' deception jud...
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作者：Bloomfield, Matthew J.; Brueggemann, Ulf; Christensen, Hans B.; Leuz, Christian
作者单位：University of Chicago; Humboldt University of Berlin; National Bureau of Economic Research
摘要：The paper examines whether international regulatory harmonization increases cross-border labor migration. To study this question, we analyze European Union initiatives that harmonized accounting and auditing standards. Regulatory harmonization should reduce economic mobility barriers, essentially making it easier for accounting professionals to move across countries. Our research design compares the cross-border migration of accounting professionals relative to tightly matched other profession...
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作者：Kisser, Michael; Kiff, John; Soto, Mauricio
作者单位：Norwegian School of Economics (NHH); International Monetary Fund
摘要：We use historical particularities of pension funding law to investigate whether managers of U.S. corporate defined benefit pension plan sponsors strategically use regulatory freedom to lower the reported value of pension liabilities, and hence required cash contributions. For some years, pension plans were required to estimate two liabilities-one with mandated discount rates and mortality assumptions, and another where these could be chosen freely. Using a sample of 11,963 plans, we find that ...
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作者：Madsen, Joshua
作者单位：University of Minnesota System; University of Minnesota Twin Cities
摘要：I test whether the anticipation of earnings news stimulates acquisition of customer information and mitigates returns to the customer-supplier anomaly documented by Cohen and Frazzini (Economic Links and Predictable Returns. The Journal of Finance 63 (2008): 1977-2011). I find that attention to a firm's publicly disclosed customers increases shortly before the firm announces earnings, and that customer stock returns predict supplier stock returns shortly before, but not after, the supplier's e...
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作者：Manchiraju, Hariom; Rajgopal, Shivaram
作者单位：Indian School of Business (ISB); Columbia University
摘要：In 2013, a new law required Indian firms, which satisfy certain profitability, net worth, and size thresholds, to spend at least 2% of their net income on corporate social responsibility (CSR). We exploit this regulatory change to isolate the shareholder value implications of CSR activities. Using an event study approach coupled with a regression discontinuity design, we find that the law, on average, caused a 4.1% drop in the stock price of firms forced to spend money on CSR. However, firms t...
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作者：Fang, Vivian W.; Huang, Allen H.; Wang, Wenyu
作者单位：University of Minnesota System; University of Minnesota Twin Cities; Hong Kong University of Science & Technology; Indiana University System; Indiana University Bloomington
摘要：Errors and bias are both inherent features of accounting. In theory, while errors discourage bias by lowering the value relevance of accounting, they can also facilitate bias by providing camouflage. Consistent with theory, we find a hump-shaped relation between a firm's propensity to engage in intentional misstatement and the prevalence of unintentional misstatements in the firm's industry for the whole economy and a majority of the industries. The result is robust to using firms' number of i...
