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作者：Grieser, William; Hadlock, Charles J.; Pierce, Joshua R.
作者单位：Texas Christian University; Michigan State University; University of Alabama System; University of Alabama Tuscaloosa
摘要：We provide evidence on earnings management by exploiting temporary exogenous shocks to utility firms' sales arising from weather variation. We find that sample firms' sales are highly sensitive to annual changes in average temperatures in the region where the firm operates, but this sensitivity disappears quickly as one moves down the income statement. This evidence, while indirect, is suggestive of earnings management activities. In search of direct evidence, we study charitable giving decisi...
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作者：Cadman, Brian; Carrizosa, Richard; Peng, Xiaoxia
作者单位：Utah System of Higher Education; University of Utah; University of Texas System; University of Texas El Paso
摘要：A Correction to this paper has been published: https://doi.org/10.1007/s11142-020-09577-2
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作者：Rajgopal, Shivaram; Srinivasan, Suraj; Zheng, Xin
作者单位：Columbia University; Harvard University; University of British Columbia
摘要：We document 45 specific allegations related to audit deficiencies based on GAAS, as detailed in 141 AAERs and 153 securities class action lawsuits over the violation years 1978-2016. Next, we use these allegations to validate popular proxies of audit quality. Of all the audit quality proxies, we find that restatements consistently predict all of the top six most cited audit deficiencies. The ratio of audit fees to total fees and the presence of a city specialist auditor predict five of the mos...
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作者：Penman, Stephen H.; Zhang, Xiao-Jun
作者单位：Columbia University; University of California System; University of California Berkeley
摘要：This paper revises the standard interpretation of the book rate of return as a measure of profitability. Rather, due to conservative accounting, the book rate of return informs about risk and the expected return to the investor. In contrast to asset pricing research, where the book rate of return is viewed as positively associated with risk and expected stock returns, the paper demonstrates the opposite: with the effect of conservative accounting, the book rate of return is negatively associat...
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作者：Bertomeu, Jeremy; Cheynel, Edwige; Floyd, Eric; Pan, Wenqiang
作者单位：Washington University (WUSTL); University of California System; University of California San Diego; Columbia University
摘要：Machine learning offers empirical methods to sift through accounting datasets with a large number of variables and limiteda prioriknowledge about functional forms. In this study, we show that these methods help detect and interpret patterns present in ongoing accounting misstatements. We use a wide set of variables from accounting, capital markets, governance, and auditing datasets to detect material misstatements. A primary insight of our analysis is that accounting variables, while they do n...
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作者：Truong, Cameron; Nguyen, Thu Ha; Huynh, Thanh
作者单位：Monash University; Monash University
摘要：Using a sample of U.S. firms from 1995 through 2015 and the customer satisfaction scores from the American Customer Satisfaction Index, we find strong evidence that firms with higher customer satisfaction scores enjoy lower cost of equity capital, even after controlling for other factors that determine the cost of equity. In addition, results from a propensity score matched sample analysis, a difference-in-differences analysis, and instrumental variable regressions suggest that our findings ar...
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作者：Christ, Margaret H.; Emett, Scott A.; Summers, Scott L.; Wood, David A.
作者单位：University System of Georgia; University of Georgia; Arizona State University; Arizona State University-Tempe; Brigham Young University
摘要：Auditors increasingly employ technologies to improve audit quality. Using a design science approach, we examine whether using drones and automated counting software can improve audit quality and thus financial reporting. We assess three dimensions of audit quality-efficiency, effectiveness, and quality of documentation. We show that auditors can perform inventory counts with these technologies much more efficiently than they can with manual techniques, decreasing count time in our study from 6...
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作者：Bertomeu, Jeremy; Vaysman, Igor; Xue, Wenjie
作者单位：Washington University (WUSTL); City University of New York (CUNY) System; Baruch College (CUNY); National University of Singapore
摘要：We develop a theory of asymmetries between voluntary and mandatory disclosure. Efficiently designed mandatory disclosure policies are substitutes for excessive voluntary disclosures. The efficient policy takes the form of a lower threshold below which firms must disclose bad news and an upper threshold above which firms voluntarily disclose good news. Hence mandatory disclosures are asymmetric and feature conservative reporting of bad news. The threshold to recognize bad news increases when in...
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作者：Ellahie, Atif
作者单位：Utah System of Higher Education; University of Utah
摘要：The literature on cash flow or earnings beta is theoretically well-motivated in its use of fundamentals, instead of returns, to measure systematic risk. However, empirical measures of earnings beta based on either log-linearizing the return equation or log-linearizing the clean-surplus accounting identity are often difficult to construct. I construct simple earnings betas based on various measures of realized and expected earnings and find that an earnings beta based on price-scaled expectatio...
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作者：Lundholm, Russell J.
作者单位：University of British Columbia
摘要：This paper models the value of conducting financial statement analysis (FSA) in the presence of an electronically traded fund (ETF) that gives exposure to the firm's systematic value. FSA is characterized as a costly process that yields a private signal about the idiosyncratic portion of a firm's future payoffs. The value of this signal depends on how efficiently price transmits information to uninformed traders. A popular argument is that ETFs are attracting noise traders away from the underl...
