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作者：Xue, Hao
作者单位：Duke University
摘要：This paper studies a model in which investors' information acquisition and the manager's investment choice (hence the moments of the firm's cash flow) are jointly determined. I show that a lower information acquisition cost alters the information environment in a way that motivates the manager to prioritize reducing the variance of cash flow over improving its mean. I present conditions under which a decrease in the cost of information acquisition reduces stock valuations and investors' welfar...
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作者：Ertan, Aytekin; Lee, Yun; Wittenberg-Moerman, Regina
作者单位：University of London; London Business School; Singapore Management University; University of Southern California
摘要：Bond defaults are undesirable yet natural outcomes of risky investments. What is also crucial but hitherto underexplored is the unexpectedness of defaults. We develop a parsimonious measure of default unexpectedness and highlight its economic importance by demonstrating that unexpected defaults are associated with unfavorable recovery outcomes and adverse price changes in peer firm bonds. We then examine how default unexpectedness relates to information opacity. We find that firms with opaque ...
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作者：Bills, Kenneth L.; Cating, Ryan; Lin, Chenxi; Seidel, Timothy A.
作者单位：Michigan State University; Michigan State University's Broad College of Business; University of Central Arkansas; University of Oklahoma System; University of Oklahoma - Norman; Brigham Young University
摘要：This study examines whether auditors serve as a conduit for disseminating Securities and Exchange Commission (SEC) views on reporting and disclosure matters as the result of being privy to clients' SEC comment letters. This examination is important because auditors' involvement in and private access to clients' comment letters can enhance the timeliness of dissemination and constrain reporting or disclosure choices that diverge from SEC views. Among clients with a greater expectation of impair...
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作者：Chu, Jenny; He, Yuan; Hui, Kai Wai; Lehavy, Reuven
作者单位：University of Cambridge; Xiamen University; University of Hong Kong; University of Michigan System; University of Michigan
摘要：This study examines the properties of innovation disclosures contained in new product announcements, a form of voluntary, nonfinancial disclosure. We analyze these properties using a novel, text-based measure of the extent of product innovation disclosed in new product announcements. We find that stock prices react more positively to announcements with more extensive innovation disclosure. In our main analyses, we first find that a higher level of innovation disclosure predicts a greater incre...
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作者：Armstrong, Christopher; Chau, Jacky; Ittner, Christopher D.; Xiao, Jason J.
作者单位：Stanford University; Chinese University of Hong Kong; University of Pennsylvania; State University of New York (SUNY) System; Binghamton University, SUNY
摘要：We examine differences in CEOs' achievement of earnings per share (EPS) targets related to (1) analysts' forecasts and (2) internal cash bonus payouts. Our focus on firms with different benchmarks for the same performance metric enables us to assess the relative importance of the incentives that each EPS target provides based on its revealed achievement. Most CEOs meet analysts' final consensus EPS forecasts but are unlikely to meet bonus EPS targets that exceed forecasted EPS. Nearly all CEOs...
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作者：Lundholm, Russell; Zheng, Xin
作者单位：University of British Columbia
摘要：We study how the launch of an electronically traded fund (ETF) that holds firms in a specific industry changes the behavior of analysts who follow that firms in that industry. An industry ETF allows investors to trade the firm-specific payoff separately from the industry payoff. This causes significant changes in the value of different types of information. In particular, following an increase in a firm's industry ETF coverage, the firm's analyst coverage increases in the following year, and t...
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作者：Li, Nan
作者单位：University of Toronto
摘要：This paper studies the grouping of firms based on their labor-market connections, a significant departure from the traditional approach of grouping based on product-market connections. It also proposes a measure of labor market peers by analyzing the also viewed companies on two major online labor market platforms, LinkedIn and Glassdoor. Using the labor market peer measure, I examine whether firms that hire employees with similar skills and that are presumably exposed to the same labor-relate...
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作者：Tsang, Albert; Wang, Kun Tracy; Zhu, Nathan Zhenghang
作者单位：Southern University of Science & Technology; Australian National University; Zhejiang University
摘要：Although foreign media outlets comprise a substantial proportion of the media covering U.S. financial markets, their characteristics and role in these financial markets have not been explored. Using a novel, manually collected dataset covering 1,126 media outlets from 48 countries, we explore whether there are systematic differences in the reporting properties of foreign and domestic media when they cover U.S. firm earnings announcements. We find that the coverage of foreign media outlets tend...
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作者：Wu, Xiting; Luo, Le; You, Jiaxing
作者单位：Shandong University; Macquarie University; Xiamen University
摘要：Using the staggered establishment of environmental courts in China, we study the effect of environmental law enforcement on audit fees. We find that companies' abnormal audit fees increase significantly after the establishment of a specialized environmental court strengthens environmental law enforcement. Our cross-sectional analyses show that the increase in abnormal audit fees is greater for companies with worse environmental performance and for those in heavily polluting industries. We then...
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作者：Vincenzi, Roberto
作者单位：Bocconi University
摘要：This study investigates the influence of central bank private-sector quantitative easing (QE) policies on firms' voluntary disclosures. While the effects of QE on borrowing costs and asset prices are well documented, spillovers in the disclosure realm remain understudied. This study specifically analyzes the effects of the Corporate Sector Purchase Program (CSPP), a private-sector QE policy implemented by the European Central Bank (ECB) in 2016 targeting corporate bonds in the euro area. Apply...
