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作者：Abbott, Lawrence J.; Daugherty, Brian; Parker, Susan; Peters, Gary F.
作者单位：University of Wisconsin System; University of Wisconsin Milwaukee; Santa Clara University; University of Arkansas System; University of Arkansas Fayetteville
摘要：In light of the growing importance of internal audit functions (IAF) and the limited archival evidence on internal audit quality, we examine an interactive model of IAF quality (comprised of competence and independence) to better understand the determinants of IAF effectiveness as a financial reporting monitor. Our tests support the hypothesis that the joint presence of competence and independence is a necessary antecedent to effective IAF financial reporting monitoring. In sum, our results sh...
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作者：Chen, Yasheng; Jermias, Johnny; Panggabean, Tota
作者单位：Xiamen University; Simon Fraser University; James Cook University; California State University System; California State University Sacramento
摘要：This paper investigates the role of visual attention in managerial judgments during balanced-scorecard performance evaluations. Using the Locarna eye tracker to establish the amount of time managers spent focused on visual cues, we found that managers who look more at strategically linked performance measures are more likely to make decisions consistent with the achievement of their subordinates' strategic objectives. When aware of strategy, managers focused more on strategically linked perfor...
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作者：Kumar, Praveen; Langberg, Nisan; Sivaramakrishnan, K.
作者单位：University of Houston System; University of Houston; University of Houston System; University of Houston; Tel Aviv University; Rice University
摘要：We examine voluntary disclosure and capital investment by an informed manager in an initial public offering (IPO) in the presence of informed and uninformed investors. We find that in equilibrium, disclosure is more forthcomingand investment efficiency is lowerwhen a greater fraction of the investment community is already informed. Moreover, managers disclose more information when the likelihood of an information event is higher, more equity is issued, or the cost of information acquisition is...
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作者：Bushman, Robert M.; Lerman, Alina; Zhang, X. Frank
作者单位：University of North Carolina; University of North Carolina Chapel Hill; Yale University
摘要：A fundamental property of accrual accounting is to smooth temporary timing fluctuations in operating cash flows, indicating an inherent negative correlation between accruals and cash flows. We show that the overall correlation between accruals and cash flows has dramatically declined in magnitude over the past half century and has largely disappeared in more recent years. The adjusted R-2 from regressing (changes in) accruals on (changes in) cash flows drops from about 70% (90%) in the 1960s t...
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作者：Gow, Ian D.; Larcker, David F.; Reiss, Peter C.
作者单位：Harvard University; Stanford University
摘要：This paper examines the approaches accounting researchers adopt to draw causal inferences using observational (or nonexperimental) data. The vast majority of accounting research papers draw causal inferences notwithstanding the well-known difficulties in doing so. While some recent papers seek to use quasi-experimental methods to improve causal inferences, these methods also make strong assumptions that are not always fully appreciated. We believe that accounting research would benefit from mo...
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作者：Silvers, Roger
作者单位：Utah System of Higher Education; University of Utah
摘要：This study shows that the Securities and Exchange Commission's (SEC) enforcement intensity toward the foreign firms under its jurisdiction has increased dramatically over the past two decades. Because enforcement events signify an increased threat of future enforcement, I examine the stock returns of foreign firms not targeted by the SEC during windows around enforcement actions that target foreign firms. This design captures the net effects of public enforcement and helps to rule out omitted ...
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作者：Floyd, Eric; List, John A.
作者单位：Rice University; University of Chicago; National Bureau of Economic Research
摘要：The gold standard in the sciences is uncovering causal relationships. A growing literature in economics utilizes field experiments as a methodology to establish causality between variables. Taking lessons from the economics literature, this study provides an A-to-Z description of how to conduct field experiments in accounting and finance. We begin by providing a user's guide into what a field experiment is, what behavioral parameters field experiments identify, and how to efficiently generate ...
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作者：Brown, Anna Bergman
作者单位：Utah System of Higher Education; Utah State University
摘要：Institutional differences between countries result in additional information risks between borrowers and lenders in cross-border private loans. This study examines the effect of these information risks on the structure of optimal debt contracts in international (cross-border) versus domestic private debt markets. Using mandatory IFRS adoption as an indicator for institutional changes that reduced differences between countries, I compare attributes of international versus domestic loans before ...
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作者：Demerjian, Peter R.; Donovan, John; Larson, Chad R.
作者单位：University of Washington; University of Washington Seattle; University of Notre Dame; University of Houston System; University of Houston
摘要：We examine how fair value accounting affects debt contract design, specifically the use and definition of financial covenants in private loan contracts. Using SFAS 159 adoption as our setting, we find that a small but significant proportion of loans (14.5%) modify covenant definitions to exclude the effects of SFAS 159 fair values. Only a limited number of these modifications exclude assets elected at fair value (less than 7%), while all exclude liabilities elected at fair value. Notably, we d...
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作者：Bushman, Robert M.; Hendricks, Bradley E.; Williams, Christopher D.
作者单位：University of North Carolina; University of North Carolina Chapel Hill; University of Michigan System; University of Michigan
摘要：This paper investigates whether greater competition increases or decreases individual bank and banking system risk. Using a new text-based measure of competition, and an instrumental variables analysis that exploits exogenous variation in bank deregulation, we provide robust evidence that greater competition increases both individual bank risk and a bank's contribution to system-wide risk. Specifically, we find that higher competition is associated with lower underwriting standards, less timel...
