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作者：Elliott, W. Brooke; Hobson, Jessen L.; White, Brian J.
作者单位：University of Illinois System; University of Illinois Urbana-Champaign; University of Texas System; University of Texas Austin
摘要：An enduring issue in financial reporting is whether and how salient summary measures of firm performance (earnings metrics) affect market price efficiency. In laboratory markets, we test the effects of salient earnings metrics, which vary in how they combine persistent and transitory elements, on investor information search, beliefs about value, offers to trade, and market price efficiency. We find that including transitory elements in salient earnings metrics causes traders to search unnecess...
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作者：Bell, Timothy B.; Causholli, Monika; Knechel, W. Robert
作者单位：State University System of Florida; University of North Florida; University of Kentucky; State University System of Florida; University of Florida
摘要：We use data from internal assessments of audit quality in a Big 4 firm to investigate the impact of audit firm tenure and auditor-provided non-audit services (NAS) on audit quality. We find that first-year audits receive lower assessments of audit quality and that quality improves shortly thereafter and then declines as tenure becomes very long. Partitioning our sample between SEC registrants and private clients, we find that the decline in audit quality in the long tenure range is attributabl...
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作者：Fang, Vivian W.; Maffett, Mark; Zhang, Bohui
作者单位：University of Minnesota System; University of Minnesota Twin Cities; University of Chicago; University of New South Wales Sydney
摘要：This paper investigates whether foreign institutional investors affect the global convergence of financial reporting practices. Using several measures of reporting convergence, we show that U.S. institutional ownership is positively associated with subsequent changes in emerging market firms' accounting comparability to their U.S. industry peers. We identify this association using an instrumental variable approach that exploits exogenous variation in U.S. institutional investment generated by ...
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作者：Bushman, Robert M.; 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 the extent to which delayed expected loan loss recognition (DELR) is associated with greater vulnerability of banks to three distinct dimensions of risk: (1) stock market liquidity risk, (2) downside tail risk of individual banks, and (3) codependence of downside tail risk among banks. We hypothesize that DELR increases vulnerability to downside risk by creating expected loss overhangs that threaten future capital adequacy and by degrading bank transparency, which incre...
