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作者：Wu, Jin (Ginger); Zhang, Lu; Zhang, X. Frank
作者单位：University System of Georgia; University of Georgia; Yale University; University of Michigan System; University of Michigan; National Bureau of Economic Research
摘要：Interpreting accruals as working capital investment, we hypothesize based on q-theory that firms optimally adjust their accruals in response to discount rate changes. A higher discount rate means less profitable investments and lower accruals, and a lower discount rate means more profitable investments and higher accruals. Our evidence supports this optimal investment hypothesis: (1) adding an investment factor into standard factor regressions substantially reduces the magnitude of the accrual...
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作者：Grace, Martin F.; Leverty, J. Tyler
作者单位：University System of Georgia; Georgia State University; University of Iowa
摘要：This paper examines the effect of rate regulation on the management of the property-liability insurer loss reserve. The political cost hypothesis predicts that managers make accounting choices to reduce wealth transfers resulting from the regulatory process. Managers may under-state reserves to justify lower rates to regulators. Alternatively, managers may have an incentive to report loss inflating discretionary reserves to reduce the cost of regulatory rate suppression. We find insurers over-...
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作者：Bushman, Robert M.; Smith, Abbie J.; Wittenberg-Moerman, Regina
作者单位：University of North Carolina; University of North Carolina Chapel Hill; University of Chicago
摘要：We delineate key channels through which flows of confidential information to loan syndicate participants impact the dynamics of information arrival in prices. We isolate the timing of private information flows by estimating the speed of price discovery over quarterly earnings cycles in both secondary syndicated loan and equity markets. We identify borrowers disseminating private information to lenders relatively early in the cycle with firms exhibiting relatively early price discovery in the s...
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作者：Ramanna, Karthik; Roychowdhury, Sugata
作者单位：Harvard University; Massachusetts Institute of Technology (MIT)
摘要：We examine the accrual choices of outsourcing firms with links to U.S. congressional candidates during the 2004 elections, when corporate outsourcing was a major campaign issue. We find that politically connected firms with more extensive outsourcing activities have more income-decreasing discretionary accruals. Further, relative to adjacent periods, the evidence is concentrated in the two calendar quarters immediately preceding the 2004 election, consistent with heightened incentives for firm...
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作者：Li, Ningzhong
作者单位：University of London; London Business School
摘要：This paper investigates contractual definitions of net income and net worth and the cross-sectional variation in definitions of net income in a large sample of private debt contracts to shed light on the debt contracting demand for accounting numbers. The descriptive evidence indicates that removing transitory earnings is one principal concern in the measurement of earnings but not in the measurement of net worth. In the extreme, contracts are never written on comprehensive income as an earnin...
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作者：Koonce, Lisa; Lipe, Marlys Gascho
作者单位：University of Oklahoma System; University of Oklahoma - Norman
摘要：Archival research shows that the market reacts to earnings trend as well as to earnings performance relative to analysts' forecasts (i.e., benchmark performance). We conduct four experiments to investigate how and why investors react to these two measures when both are available over multiple time periods. Our results show that investors rely on an earnings measure only when it is consistent over time. When both measures are consistent over time, investors use them in an additive fashion, sugg...
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作者：Langberg, Nisan; Sivaramakrishnan, K.
作者单位：University of Houston System; University of Houston
摘要：We study the resource allocation role of voluntary disclosures when feedback from financial markets is potentially useful to managers in undertaking value maximizing actions. Managers weigh the short-term price implications of disclosure against the long-term efficiency gains due to feedback while financial analysts strategically produce information. The model can explain why managers disclose bad information (e.g., grim outlook), that reduces the stock price, and why prices respond more stron...
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作者：Bushee, Brian J.; Core, John E.; Guay, Wayne; Hamm, Sophia J. W.
作者单位：University of Pennsylvania
摘要：This paper investigates whether the business press serves as an information intermediary. The press potentially shapes firms' information environments by packaging and disseminating information, as well as by creating new information through journalism activities. We find that greater press coverage reduces information asymmetry (i.e., lower spreads and greater depth) around earnings announcements, with broad dissemination of information having a bigger impact than the quantity or quality of p...
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作者：Reichelt, Kenneth J.; Wang, Dechun
作者单位：Louisiana State University System; Louisiana State University; Texas A&M University System; Texas A&M University College Station; Mays Business School
摘要：Our paper examines whether audit quality is higher for industry audit specialists at the national and city-office levels using the framework developed in Ferguson et al. [2003] and Francis et al. [2005]. We find that auditors who are both national and city-specific industry specialists have clients with the lowest abnormal accruals, suggesting that joint national and city-specific industry specialists have the highest audit quality. In addition, we find some evidence that abnormal accruals of ...
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作者：Ricchiute, David N.
作者单位：University of Notre Dame
摘要：Framed in the decision to restate financial statements, this study addresses whether behavior predicted by competing theories depends on the complexity of evidence. Two experiments observe the information-search behavior of auditors responsible for investigating their firm's prior opinion. Experiment 1 shows that auditors confronted with few (many) summarized statements that replicate in form the materials used in prior research prefer to first search statements that are inconsistent (consiste...
