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作者：Urcan, Oktay; Yoon, Hayoung
作者单位：University of Illinois System; University of Illinois Urbana-Champaign; Southern Methodist University
摘要：This paper examines the properties of accounting numbers used in compensation contracts for S&P 500 firms from 2006 to 2017. Our data reveal wide variation in the accounting performance metrics used in compensation contracts, with some recent movement from bottom-line earnings-based measures to top-line measures. Investigating specific exclusions made to GAAP-based financial measures to arrive at realized compensation performances, we identify 27 different types of exclusions and document sign...
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作者：Krishnan, Jagan; Krishnan, Jayanthi; Maex, Steven A.
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University; George Mason University
摘要：We examine whether employees of the Public Company Accounting Oversight Board (PCAOB) that are hired by large audit firms are associated with subsequent higher audit quality at these firms. Employees at the PCAOB acquire expertise related to the industry they regulate, the audit industry. We predict that this expertise, which we label regulatory audit quality expertise, would improve audit quality at audit firms, particularly for clients with high misstatement risk. We find that regulatory aud...
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作者：Johannesson, Erik; Ohlson, James A. A.; Zhai, Sophia Weihuan
作者单位：City University of Hong Kong; Xiamen University
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作者：Johannesson, Erik; Ohlson, James A.; Zhai, Sophia Weihuan
作者单位：City University of Hong Kong; Xiamen University
摘要：This paper examines the current empirical accounting research paradigm. We ask: In general, do the estimated regressions support the promoted narratives? We focus on a regression model's main variable of interest and consider the extent to which it contributes to the explanation of the dependent variable. We replicate 10 recently published accounting studies, all of which rely on significant t-statistics, per conventional levels, to claim rejection of the null hypothesis. Our examination shows...
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作者：Zhou, Ying; Weber, David P.; Wen, Ce
作者单位：University of Connecticut
摘要：Whether audit firm tenure affects audit quality is a question of longstanding regulatory and scholarly interest. While this question centers on how audit quality changes over time within client-audit firm relationships (longitudinal variation), prior studies tend to instead compare audit quality across relationships of different lengths (cross-sectional variation). We show that conventional pooled cross-sectional tests are subject to selection bias: client-auditor pairs that select into longer...
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作者：Guest, Nicholas; Kim, Jaewoo
作者单位：Cornell University; University of Oregon
摘要：This paper examines how the media responds to the loss of analyst coverage resulting from brokerage mergers and closures. We find some evidence of an overall decrease in media coverage of affected firms, consistent with analysts serving as a useful information source for the media. However, media coverage during the earnings announcement significantly increases, consistent with the media switching their efforts to events with more non-analyst (e.g., firm-provided) information available. Both t...
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作者：Dong, Qingkai; Raghunandan, Aneesh; Rajgopal, Shivaram
作者单位：Hong Kong University of Science & Technology; University of London; London School Economics & Political Science; Columbia University
摘要：US state governments frequently provide firms with targeted subsidies. In exchange, recipients promise to create or retain a certain number of jobs in the subsidizing state. Using novel hand-collected data, we address three questions: (i) the extent to which firms meet job creation targets promised in their applications, (ii) the factors that determine which firms meet the targets, and (iii) the benefits to firms from meeting those targets. We find that 63% of subsidies awarded to publicly tra...
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作者：Rountree, Brian; Sivaramakrishnan, Konduru; Wang, Yanyan; Yu, Lisheng
作者单位：Rice University; Xiamen University; Sun Yat Sen University
摘要：This study provides a theoretical framework to help isolate persistence estimates of earnings innovations from the effects of accounting measurements. We show that estimates of persistence are biased downward when using reported earnings because of the presence of accrual estimation errors. The greater the errors, the greater the downward bias, which explains the empirically observed positive association between accrual quality and estimated earnings persistence. However, when we debias report...
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作者：Wang, Jing; Welker, Michael
作者单位：Queens University - Canada
摘要：Accounting changes, whether voluntarily undertaken by firms or mandated by standard setters, are generally implemented using one of three application methods-retrospective, modified retrospective, or prospective. This study sheds light on whether the adoption method applied to accounting changes impacts financial statement usefulness. Because individual prior year results that are presented for comparative purposes are restated under retrospective application but not under modified retrospecti...
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作者：Jiang, John Xuefeng; Kong, Jing
作者单位：Michigan State University; Michigan State University's Broad College of Business; University of Michigan System; University of Michigan
摘要：U.S. industrial plants emit around four billion pounds of toxic chemicals annually, posing health and economic risks. This study investigates the role of newspapers in influencing plants' toxic emissions. We use local newspaper closures as an exogenous shock to news coverage and observe a 10% increase in emissions in affected counties, compared to plants owned by the same firm in other counties. Our findings indicate that this increase is not attributable to variations in environmental policie...
