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作者：Jackson, Scott B.; Liu, Xiaotao (Kelvin)
作者单位：University of South Carolina System; University of South Carolina Columbia; Northeastern University
摘要：We study the interrelation between conservatism and earnings management by examining the allowance for uncollectible accounts and its income statement counterpart, bad debt expense. We find that the allowance is conservative and that it has become more conservative over time. Conservatism may, however, facilitate earnings management. We find that firms manage bad debt expense downward (and even record income-increasing bad debt expense) to meet or beat analysts' earnings forecasts and that con...
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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：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...
