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作者：Hail, Luzi
作者单位：University of Pennsylvania
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作者：Costello, Anna M.; Wittenberg-Moerman, Regina
作者单位：University of Chicago
摘要：We examine the effect of financial reporting quality on the trade-off between monitoring mechanisms used by lenders. We rely on Sarbanes-Oxley internal control reports to measure financial reporting quality. We find that when a firm experiences a material internal control weakness, lenders decrease their use of financial covenants and financial-ratio-based performance pricing provisions and substitute them with alternatives, such as price and security protections and credit-rating-based perfor...
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作者：Graham, John R.; Hanlon, Michelle; Shevlin, Terry
作者单位：Duke University; National Bureau of Economic Research; Massachusetts Institute of Technology (MIT); University of Washington; University of Washington Seattle
摘要：We analyze survey responses from nearly 600 tax executives to better understand corporate decisions about real investment location and profit repatriation. Our evidence indicates that avoiding financial accounting income tax expense is as important as avoiding cash income taxes when corporations decide where to locate operations and whether to repatriate foreign earnings. This result is important in light of the recent research about whether financial accounting affects investment and in light...
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作者：Minnis, Michael
作者单位：University of Chicago
摘要：I examine how verification of financial statements influences debt pricing. I use a large proprietary database of privately held U.S. firms, an important business sector in which the information environment is opaque and financial statement audits are not mandated. I find that audited firms have a significantly lower cost of debt and that lenders place more weight on audited financial information in setting the interest rate. Further, I provide evidence of a mechanism for this increased financ...
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作者：Roulstone, Darren T.
作者单位：University System of Ohio; Ohio State University
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作者：Armstrong, Christopher S.; Core, John E.; Taylor, Daniel J.; Verrecchia, Robert E.
作者单位：University of Pennsylvania; Massachusetts Institute of Technology (MIT)
摘要：This paper examines when information asymmetry among investors affects the cost of capital in excess of standard risk factors. When equity markets are perfectly competitive, information asymmetry has no separate effect on the cost of capital. When markets are imperfect, information asymmetry can have a separate effect on firms' cost of capital. Consistent with our prediction, we find that information asymmetry has a positive relation with firms' cost of capital in excess of standard risk facto...
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作者：Lambert, Tamara A.; Agoglia, Christopher P.
作者单位：University of Massachusetts System; University of Massachusetts Amherst
摘要：The PCAOB recently expressed concern regarding the sufficiency and effectiveness of review and supervision of audit fieldwork. For the audit review process to succeed as a quality control mechanism, any issues or questions identified by a reviewer must be adequately resolved and documented in the workpapers. If audit review fails to correct for errors/biases in the work of reviewees, there can be serious detrimental effects on audit quality and, in turn, financial statement quality. Our study ...
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作者：Gao, Yu
作者单位：University of Minnesota System; University of Minnesota Twin Cities
摘要：This paper examines the economic impact of the Sarbanes-Oxley Act (SOX) by studying foreign firms' choice of whether to issue bonds in the U. S. public bond market or elsewhere before and after the law's enactment in 2002. After controlling for firm characteristics, bond features, home-country attributes, and market conditions, I find that foreign firms rely less on the U. S. public bond market after SOX. Additionally, some determinants of choosing the U. S. public bond market have changed sin...
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作者：Groysberg, Boris; Healy, Paul M.; Maber, David A.
作者单位：Harvard University
摘要：We use proprietary data from a major investment bank to investigate factors associated with analysts' annual compensation. We find compensation to be positively related to All-Star recognition, investment-banking contributions, the size of analysts' portfolios, and whether an analyst is identified as a top stock picker by the Wall Street Journal. We find no evidence that compensation is related to earnings forecast accuracy. But consistent with prior studies, we find analyst turnover to be rel...
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作者：Riedl, Edward J.; Serafeim, George
作者单位：Harvard University
摘要：Using a sample of U.S. financial institutions, we exploit recent mandatory disclosures of financial instruments designated as fair value level 1, 2, and 3 to test whether greater information risk in financial instrument fair values leads to higher cost of capital. We derive an empirical model allowing asset-specific estimates of implied betas, and find evidence that firms with greater exposure to level 3 financial assets exhibit higher betas relative to those designated as level 1 or level 2. ...
