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作者：Belnap, Andrew; Hoopes, Jeffrey L.; Maydew, Edward L.; Turk, Alex
作者单位：University of Texas System; University of Texas Austin; University of North Carolina; University of North Carolina Chapel Hill
摘要：Tax audits are a necessary component of the tax system, but policymakers and others have expressed concerns about their potentially adverse real effects. Understanding the causal effects of tax audits has been hampered by lack of data and because typically tax audits are not randomly assigned. We use administrative data from random tax audits of small businesses to examine the real effects of being subject to a tax audit. We find that audited firms are more likely to go out of business followi...
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作者：Na, Ke; Zhang, Ivy Xiying; Zhang, Yong
作者单位：University of California System; University of California Riverside; Hong Kong Polytechnic University
摘要：We explore the informational properties of earnings that compensation contracting requires for performance measurement. While conditional conservatism could be desirable because it can help to alleviate agency conflicts, its downside relates to the trade-off between conservatism and other important properties, such as persistence. We infer boards' performance measurement preferences from a novel dataset of earnings realizations used to calculate executive bonus payouts (which we label compensa...
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作者：Schoenfeld, Jordan
作者单位：Utah System of Higher Education; University of Utah
摘要：Firms routinely manage their financial reporting systems on external cloud platforms that are susceptible to cyberattacks and data integrity issues. Therefore, the AICPA developed a special type of voluntary audit called a Service Organization Control audit (SOC audit) that evaluates this risk. This study conducts one of the first systematic analyses of the benefits and costs of these voluntary audits. Using hand-collected data from public firms, I find that (1) 29% of firms in the S&P 500 (re...
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作者：Chen, Qi; Mayew, William J.; Yan, Huihao
作者单位：Duke University; City University of New York (CUNY) System; Baruch College (CUNY)
摘要：We find that earnings forecasts by analysts with more local peers, defined as analysts working in the same brokerage office who cover different firms headquartered in the same area, are more accurate. These heightened accuracy effects are concentrated in settings where local peers are particularly valuable, such as when analysts have less access to corporate management, when earnings are harder to forecast, and when analysts have stronger incentives to work hard. In examining the nature of the...
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作者：Liu, Tingting; Shu, Tao; Towery, Erin; Wang, Jasmine
作者单位：Iowa State University; The Chinese University of Hong Kong, Shenzhen; University System of Georgia; University of Georgia; University of Virginia
摘要：This study examines the role of the Securities and Exchange Commission (SEC) in mergers and acquisitions (M&As) involving publicly traded target firms. We find that deals receiving comment letters have an increased likelihood of deal completion and deal price revision, consistent with the SEC review process reducing information asymmetry, albeit at the cost of delaying the M&A process. Further analyses suggest that the SEC review process generates new value-relevant information via firms' disc...
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作者：Even-Tov, Omri; Ryans, James; Solomon, Steven Davidoff
作者单位：University of California System; University of California Berkeley; University of London; London Business School; University of California System; University of California Berkeley
摘要：To mitigate information asymmetry in acquisitions, the seller makes contractual representations and warranties (referred to as R&W or reps) about the state of the target, such as attesting to the accuracy of the target's financial statements. While seller indemnities allow buyers to impose costs due to breaches in the reps discovered after the deal's close, these indemnities involve significant contracting costs. To mitigate these costs, the acquisition parties have increasingly turned to purc...
