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作者：Clor-Proell, Shana; Nelson, Mark W.
作者单位：Cornell University
摘要：This paper examines interpretation of accounting standards that provide implementation guidance via affirmative or counter examples. Based on prior psychology research, we predict that practitioners engage in example-based reasoning such that they are more likely to conclude that their case qualifies for the same treatment as the example. We test our predictions in two experiments in which participants judge the appropriateness of income-statement recognition. Experiment 1 uses Masters of Busi...
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作者：Baiman, Stanley; Fischer, Paul; Rajan, Madhav V.; Saouma, Richard
作者单位：University of Pennsylvania; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; Stanford University; University of California System; University of California Los Angeles
摘要：There is growing interest in the use of markets within firms. Proponents have noted that markets are a simple and efficient mechanism for allocating resources in economies in which information is dispersed. In contrast to the use of markets in the broader economy, the efficiency of an internal market is determined in large part by the endogenous contractual incentives provided to the participating, privately informed agents. In this paper, we study the optimal design of managerial incentives w...
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作者：Jagolinzer, Alan D.; Matsunaga, Steven R.; Yeung, P. Eric
作者单位：Stanford University; University of Oregon; University System of Georgia; University of Georgia
摘要：This study examines firm performance surrounding insiders' prepaid variable forward ( PVF) transactions to infer insiders' information when they enter these off- market contracts. PVFs allow insiders to hedge downside risk, share performance gains, and obtain immediate large- sum cash payments for investment or consumption. On average, PVF transactions cover 30% of a sample insider's firm- specific wealth ($ 22 million), which is substantially larger than a typical open- market sale. PVFs syst...
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作者：Penman, Stephen H.; Richardson, Scott A.; Tuna, Irem
作者单位：Columbia University; University of Pennsylvania
摘要：This paper lays out a decomposition of book-to-price (B/P) that derives from the accounting for book value and that articulates precisely how B/P absorbs leverage. The B/P ratio can be decomposed into an enterprise book-to-price (that pertains to operations and potentially reflects operating risk) and a leverage component (that reflects financing risk). The empirical analysis shows that the enterprise book-to-price ratio is positively related to subsequent stock returns but, conditional upon t...
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作者：Covrig, Vincentiu M.; DeFond, Mark L.; Hung, Mingyi
作者单位：California State University System; California State University Northridge; University of Southern California; Chinese University of Hong Kong
摘要：We test the assertion that a consequence of voluntarily adopting International Accounting Standards (IAS) is the enhanced ability to attract foreign capital. Using a unique database that reports firm-level holdings of over 25,000 mutual funds from around the world, our multivariate tests find that average foreign mutual fund ownership is significantly higher among IAS adopters. We also find that IAS adopters in poorer information environments and with lower visibility have higher levels of for...
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作者：Bouwens, Jan; Van Lent, Laurence
作者单位：Tilburg University
摘要：Using a sample of 140 managers, we investigate the use of various performance metrics in determining the periodic assessment, bonus decisions, and career paths of business unit managers. We show that the weight on accounting return measures is associated with the authority of these managers, and we document that both disaggregated measures (expenses and revenues), and nonfinancial measures play a greater role as interdependencies between business units increase. The results suggest separate an...
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作者：Hirst, D. Eric; Koonce, Lisa; Venkataraman, Shankar
摘要：An important problem facing managers is how to enhance the credibility, or believability, of their earnings forecasts. In this paper, we experimentally test whether a characteristic of a management earnings fore cast-namely, whether it is disaggregated-can affect its credibility. We also test whether disaggregation moderates the relation between managerial incentives and forecast credibility Disaggregated forecasts include an earnings forecast as well as forecasts of other key line items compr...
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作者：Sadka, Gil
作者单位：Columbia University
摘要：In an efficient capital market, asset prices vary when investors change their expectations about cash flows, discount rates, or both. Using dividends to measure cash flows, previous research shows that the aggregate dividend-price ratio varies due to changes in expected discount rates (returns) rather than expected cash flows. In contrast, using accounting earnings instead of dividends as a measure of cash flows, this paper shows that as much as 70% of the variation in the dividend-price ratio...
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作者：Lui, Daphne; Markov, Stanimir; Tamayo, Ane
作者单位：Lancaster University; Emory University; University of London; London Business School
摘要：We examine the determinants and the informativeness of financial analysts' risk ratings using a large sample of research reports issued by Salomon Smith Barney, now Citigroup, over the period 1997-2003. We find that the cross-sectional variation in risk ratings is largely explained by variables commonly viewed as measures of risk, such as idiosyncratic risk, size, book-to-market, and leverage. In addition, earnings-based measures of risk, such as earnings quality and accounting losses, also co...
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作者：Hribar, Paul; Nichols, D. Craig
作者单位：University of Iowa; Cornell University
摘要：This paper examines the implications of using the absolute value of discretionary accruals when testing for earnings management. First, we analytically develop the mean and variance of the distribution of absolute discretionary accruals, and show that the expected value is an increasing function of the variance in the underlying error term from the first- stage discretionary accrual estimation model. Second, we highlight several firm characteristics that are related to the error variance in di...
