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作者：Feng, Mei; Li, Chan
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh
摘要：We examine whether auditors exercise professional skepticism about management earnings forecasts when making going-concern decisions. Using publicly issued management earnings forecasts as a proxy for earnings forecasts provided by managers to auditors, we find that management earnings forecasts are negatively associated with both auditors' going-concern opinions and subsequent bankruptcy. The weight auditors put on management forecasts in the going-concern decision is not significantly differ...
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作者：Garrett, Jace; Hoitash, Rani; Prawitt, Douglas F.
作者单位：Bentley University; Brigham Young University
摘要：Using unique survey data from Great Place to Work (R) Institute, we investigate the association of intraorganizational trust (i.e., employees' trust in management) with three aspects of financial reporting: accruals quality, misstatements, and internal control quality. We find that trust is associated with better accrual quality, lower likelihood of financial statement misstatements, and lower likelihood of internal control material weakness disclosures. However, these effects are not uniform ...
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作者：Jia, Yuping; Van Lent, Laurence; Zeng, Yachang
作者单位：Frankfurt School Finance & Management; Tilburg University
摘要：We examine the relation between a measure of male CEOs' facial masculinity and financial misreporting. Facial masculinity is associated with a complex of masculine behaviors (including aggression, egocentrism, riskseeking, and maintenance of social status) in males. One possible mechanism for this relation is that the hormone testosterone influences both behavior and the development of the face shape. We document a positive association between CEO facial masculinity and various misreporting pr...
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作者：Goncharov, Igor; Jacob, Martin
作者单位：Lancaster University; WHU - Otto Beisheim School of Management
摘要：This study investigates why countries mandate accruals in the definition of corporate taxable income. Accruals alleviate timing and matching problems in cash flows, which smoothes taxable income and thus better aligns it with underlying economic performance. These accrual properties can be desirable in the tax setting as tax authorities seek more predictable corporate tax revenues. However, they can also make tax revenues procyclical by increasing the correlation between aggregate corporate ta...
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作者：Griffin, Jeremy B.
作者单位：University of Notre Dame
摘要：Financial accounting standards increasingly require fair value measurements. I experimentally examine how uncertainty affects auditors' adjustment decisions when evaluating fair values. I manipulate two types of uncertainty, input subjectivity and outcome imprecision, and one reporting choice, supplemental disclosure. I find that auditors are most likely to require adjustments when fair values contain both more input subjectivity and more outcome imprecision, but that this likelihood diminishe...
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作者：Deng, Mingcherng; Lu, Tong; Simunic, Dan A.; Ye, Minlei
作者单位：University of Houston System; University of Houston; University of British Columbia; University of Toronto
摘要：Conventional wisdom holds that joint audits would improve audit quality by enhancing audit evidence precision because Two heads are better than one. Our paper challenges this wisdom. We show that joint audits by one big firm and one small firm may impair audit quality, because, in that situation, joint audits induce a free-riding problem between audit firms and reduce audit evidence precision. We further derive a set of empirically testable predictions comparing audit evidence precision and au...
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作者：Aier, Jagadison K.; Chen, Long; Pevzner, Mikhail
作者单位：George Mason University; University System of Maryland; University of Baltimore
摘要：Debtholders' demand has been widely discussed as a key determinant of conservatism but clear causal evidence is not yet established. Using a natural experiment setting, wherein a Delaware court ruled that the fiduciary duties of directors in near insolvent Delaware companies extend to creditors, we predict and find that firms subject to the ruling significantly increased their accounting conservatism. In addition, our results suggest that the increase in conservatism is more pronounced in near...
