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作者：Donovan, John; Jennings, Jared; Koharki, Kevin; Lee, Joshua
作者单位：University of Notre Dame; Washington University (WUSTL); Purdue University System; Purdue University; Brigham Young University
摘要：We use machine learning methods to create a comprehensive measure of credit risk based on qualitative information disclosed in conference calls and in management's discussion and analysis section of the 10-K. In out-of-sample tests, we find that our measure improves the ability to predict credit events (bankruptcies, interest spreads, and credit rating downgrades), relative to credit risk measures developed by prior research (e.g., z-score). We also find our measure based on conference calls e...
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作者：Chy, Mahfuz; Hope, Ole-Kristian
作者单位：University of Missouri System; University of Missouri Columbia; University of Toronto; BI Norwegian Business School
摘要：We examine the effect of auditor conservatism on corporate innovation. We hypothesize that, because conservative auditors constrain income-increasing accounting discretion, managers may sacrifice long-term investments in innovation to boost current earnings and meet short-term performance targets. Exploiting state-level auditor legal liability shocks as a means of identification, we find evidence consistent with this hypothesis. Cross-sectional analyses reveal that the negative effect of incre...
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作者：Ecker, Frank; Francis, Jennifer; Olsson, Per; Schipper, Katherine
作者单位：Frankfurt School Finance & Management; Duke University; European School of Management & Technology
摘要：This paper investigates how data requirements often encountered in archival accounting research can produce a data-restricted sample that is a non-random selection of observations from the reference sample to which the researcher wishes to generalize results. We illustrate the effects of non-random sampling on results of association tests in a setting with data on one variable of interest for all observations and frequently-missing data on another variable of interest. We develop and validate ...
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作者：Ellahie, Atif; Peng, Xiaoxia
作者单位：Utah System of Higher Education; University of Utah
摘要：We examine the predictive information content of the management forecasts of stock return volatility (i.e., expected volatility) that are disclosed in annual reports. We find that expected volatility predicts near-term and longer-term stock return volatility and earnings volatility incremental to implied volatility, historical volatility, firm characteristics, and alternative measures of uncertainty. We also find that expected volatility reflects managers' private information about their firms...
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作者：Ellahie, Atif; Peng, Xiaoxia
作者单位：Utah System of Higher Education; University of Utah
摘要：A Correction to this paper has been published:
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作者：Aobdia, Daniel; Siddiqui, Saad; Vinelli, Andres
作者单位：Northwestern University; Georgetown University
摘要：We examine the heterogeneity of experts in a credence goods setting. In our analytical model, clients are uncertain about how much effort experts need to provide to solve their problem, which is either simple or difficult. Experts have varying degrees of expertise. Less qualified experts are equally effective at solving simple problems but less effective at solving difficult ones. We show that clients pay a fee premium to more qualified experts, even for simple problems. This premium increases...
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作者：Fang, Bingxu; Hope, Ole-Kristian
作者单位：University of Toronto; BI Norwegian Business School
摘要：This paper examines the impact of teamwork on sell-side analysts' performance. Using a hand-collected sample of over 50,000 analyst research reports, we find that analyst teams issue more than 70% of annual earnings forecasts. In contrast, most research implicitly assumes that forecasts are issued by individual analysts. We document that analyst teams generate more accurate earnings forecasts than individual analysts and that the stock market reacts more strongly to forecast revisions issued b...
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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：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...
