2期

最新文章

• Investigating discretion in executive contracting: extracting private information from valuation allowance decisions AI翻译
  作者：Drake, Katharine D.; Engel, Ellen; Martin, Melissa A.
  作者单位：University of Arizona
  摘要：We investigate how boards incorporate private information about managerial performance in compensation and turnover decisions. Building from the literature documenting that loss firms' publicly available valuation allowance (VA) disclosures contain value-relevant private information, we show that the decision of whether to record a VA also captures contract-relevant private information. We develop an approach to extract a private, firm-specific, time-varying signal of managerial performance by...
• Auditing versus monitoring and the role of commitment AI翻译
  作者：Jost, Peter-J
  作者单位：WHU - Otto Beisheim School of Management
  摘要：This paper studies the effect of timing and commitment of verification in a principal-agent relationship with moral hazard. To acquire additional information about the agent's behavior, the principal possesses a costly technology that produces a noisy signal about the agent's effort choice. The precision of this signal is affected by the principal's verification effort. Two verification procedures are discussed: monitoring where the principal verifies the agent's behavior simultaneously with h...
• Why are expanded audit reports not informative to investors? Evidence from the United Kingdom AI翻译
  作者：Lennox, Clive S.; Schmidt, Jaime J.; Thompson, Anne M.
  作者单位：University of Southern California; University of Texas System; University of Texas Austin; University of Illinois System; University of Illinois Urbana-Champaign
  摘要：Standard-setters worldwide have passed new audit reporting requirements aimed at making audit reports more informative to investors. In the UK, the new standard expands the audit reporting model by requiring auditors to disclose the risks of material misstatement (RMMs) that had the greatest effect on the financial statement audit. Using short window tests, prior research indicates that these disclosures are not incrementally informative to investors (Gutierrez et al. in Review of Accounting S...
• Social media, signaling, and donations: testing the financial returns on nonprofits' social media investment AI翻译
  作者：Harris, Erica E.; Neely, Daniel G.; Saxton, Gregory D.
  作者单位：State University System of Florida; Florida International University; University of Wisconsin System; University of Wisconsin Milwaukee; York University - Canada
  摘要：Social media outlets provide nonprofit organizations the opportunity of opening new communication and disclosure channels. Organizations must decide whether to set up these channels. They-and in turn their target audiences-must also decide how much to use social media. In this study, we test a novel multi-level signaling theory framework to examine the relationship between social media investments and financial returns. Employing both cross-sectional and cross-temporal samples of 427 of the la...
• Auditor conservatism, audit quality, and real consequences for clients AI翻译
  作者：Hall, Curtis; Judd, J. Scott; Sunder, Jayanthi
  作者单位：Drexel University; University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital; University of Arizona
  摘要：Auditors tend to be more conservative in their audits when they face greater litigation risk. However, it is unclear whether this conservatism is always desirable or whether it can be excessive. To evaluate the usefulness of greater auditor conservatism, we examine whether auditor conservatism improves audit quality and imposes real operating consequences for clients. We examine auditor behavior in a sample of auditors' client banks, when one of the auditor's other client banks fails (as deeme...
• The effect of a warning on investors' reactions to disclosure readability AI翻译
  作者：Koonce, Lisa; Leitter, Zheng; White, Brian
  作者单位：University of Texas System; University of Texas Austin; Nanyang Technological University
  摘要：Managers may strategically use discretion over disclosure language to reduce the effect of bad news, amplify the effect of good news, or both. We experimentally test how a warning highlighting management's discretion over disclosure language affects investors' reactions to more and less readable disclosures. We find that the warning works as intended for good news disclosures, causing investors to reduce their valuations of the firm when readability choices match management incentives. In the ...
• Do auditors charge a client business risk premium? Evidence from audit fees and derivative hedging in the US oil and gas industry AI翻译
  作者：Ranasinghe, Tharindra; Yi, Lin; Zhou, Ling
  作者单位：American University; University of Houston System; University of Houston Clear Lake; University of Houston; University of New Mexico
  摘要：The literature finds that auditors charge higher fees for riskier clients. One reason for this is that auditors expend greater effort on riskier clients. However, it is unclear whether they also charge an additional client business risk premium. We investigate this issue employing a detailed, hand-collected dataset of hedging derivative usage by U.S. oil and gas exploration and production firms. Even though the auditing of derivative instruments requires greater effort, hedging significantly r...
• When doing good for society is good for shareholders: importance of alignment between strategy and CSR performance AI翻译
  作者：Banker, Rajiv D.; Ma, Xinjie; Pomare, Carol; Zhang, Yue
  作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University; National University of Singapore; Mount Allison University; Lingnan University
  摘要：We investigate the association between firms' strategy and their corporate social responsibility (CSR) performance and whether the alignment between strategy and CSR activities affects firms' financial performance. We describe firms' strategies as innovation differentiation, marketing differentiation, and cost leadership Miller, (1986). We expect a higher benefit from CSR for firms that rely more on innovation differentiation and a lower benefit for firms that rely more on marketing differenti...
• SEC comment letters on form S-4 and M&A accounting quality AI翻译
  作者：Johnson, Bret A.; Lisic, Ling Lei; Moon, Joon Seok; Wang, Mengmeng
  作者单位：George Mason University; Virginia Polytechnic Institute & State University; California State University System; California State University Northridge; University of North Carolina; University of North Carolina Greensboro
  摘要：Prior research on SEC comment letters has almost exclusively focused on reviews of periodic filings, such as 10-Ks. Transactional filing reviews, such as those related to mergers and acquisitions (M&A), are a priority of the SEC to which it dedicates significant resources. We help fill the void in the literature by examining the influence of SEC comment letters on one type of transactional filing, Form S-4, on the accounting quality of a newly merged entity. We find that S-4s that receive an S...
• Trust, social capital, and the bond market benefits of ESG performance AI翻译
  作者：Amiraslani, Hami; Lins, Karl V.; Servaes, Henri; Tamayo, Ane
  作者单位：INSEAD Business School; Utah System of Higher Education; University of Utah; Centre for Economic Policy Research - UK; University of London; London Business School; University of London; London School Economics & Political Science; Centre for Economic Policy Research - UK
  摘要：We investigate whether a firm's social capital and the trust that it engenders are viewed favorably by bondholders. Using firms' environmental and social (E&S) performance to proxy for social capital, we find no relation between social capital and bond spreads over the period 2006-2019. However, during the 2008-2009 financial crisis, which represents a shock to trust and default risk, high-social-capital firms benefited from lower bond spreads. These effects are stronger for firms with higher ...