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作者：Shao, Shuai; Stoumbos, Robert; Zhang, X. Frank
作者单位：Zhejiang University; Columbia University; Yale University
摘要：The literature shows that earnings have come to explain less stock price movement over time, suggesting that firm fundamental information has become less important. In this paper, we replace earnings with earnings announcement returns as a measure of firm fundamental news and find that these firm fundamentals have come to explain more price movement over time. In the years after 2003, earnings announcement returns explain roughly 20% of the annual return-almost twice as much as they did before...
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作者：Baldenius, Tim; Meng, Xiaojing; Qiu, Lin
作者单位：Columbia University; New York University; University of Hong Kong
摘要：Boards can learn about the environment of their firms through information gathering and communicating with the CEO. In the post-Sarbanes-Oxley environment, some boards have taken steps to shape the communication more proactively by committing to decision rules, such as spending limits, before eliciting a report from the CEO. All else equal, such commitment power on the part of the board improves its communication with the CEO. However, taking into consideration the endogeneity of board composi...
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作者：Billings, Mary Brooke; Cedergren, Matthew C.; Dube, Svenja
作者单位：New York University; Santa Clara University; Fordham University
摘要：Research suggests that earnings-disclosure-related litigation causes managers to reduce subsequent disclosure, perhaps stemming from a belief that even their good faith disclosures will cause them trouble. This paper considers unexplored dimensions of disclosure and alternative channels of disclosure to provide additional evidence that speaks to how litigation shapes managers' disclosure strategies. Consistent with Skinner (1994)'s classic legal liability hypothesis, we find that, while manage...
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作者：Kent, Richard; Birt, Jacqueline
作者单位：University of Michigan System; University of Michigan; University of Western Australia
摘要：We identify and predict circumstances where the direct method statement of cash flows is expected to provide more value relevant information to financial statement users. We predict the direct method is more informative when earnings are of lower quality (earnings are less permanent or companies report losses), companies are in a more stable state (proxied by small absolute changes in accruals/operating cash flow), and when cash flows/accruals are measured with more error using the indirect me...
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作者：Even-Tov, Omri; Ozel, Naim Bugra
作者单位：University of California System; University of California Berkeley; University of Texas System; University of Texas Dallas; University of Pennsylvania
摘要：Using monthly and multi-day return windows, research shows that credit rating downgrades often reveal new information and lead to significant stock price reactions but that upgrades do not. Using intraday data, we revisit these findings and extend them by examining the possibility of informed trading ahead of the announcement of credit rating changes. Credit rating agencies delay public announcements of rating changes to provide issuers with time to review and respond to rating reports, which ...
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作者：Chen, Ting; Levy, Hagit; Martin, Xiumin; Shalev, Ron
作者单位：University of Massachusetts System; University of Massachusetts Boston; City University of New York (CUNY) System; Baruch College (CUNY); Washington University (WUSTL); University of Toronto; University of Toronto; University Toronto Scarborough
摘要：This study investigates the role personal connections play in a crucial element of the supply chain-supplier selection. We find that the likelihood that a potential supplier (hereafter, a vendor) is selected to be an actual supplier (hereafter, supplier) increases when personal connections between executives of the vendor and the customer exist. The magnitude of the effect varies predictably across management ranks and positions and is stronger when information asymmetries between a vendor and...
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作者：Curtis, Asher; Li, Valerie; Patrick, Paige H.
作者单位：University of Washington; University of Washington Seattle; California State University System; San Diego State University; University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital
摘要：We document widespread adoption of adjustments to earnings for performance evaluation; 84% of our sample of S&P 1500 firms use adjusted earnings for bonus compensation. We find that the transactions removed from adjusted earnings vary widely and include both transitory and nontransitory items. We examine the determinants of using adjusted earnings and find some evidence that boards are more likely to contract using adjusted earnings when firms have high levels of intangible assets, more volati...
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作者：Byard, Donal; Darrough, Masako; Suh, Jangwon
作者单位：City University of New York (CUNY) System; Baruch College (CUNY); New York Institute Technology
摘要：In the mid-2000s, the European Union adopted a number of regulatory reforms intended to increase transparency and disclosure for IPO firms, including mandating the use of International Financial Reporting Standards (IFRS). The reforms also included (1) adoption of the Prospectus Directive, which mandated increased IPO prospectus disclosures and (2) increased accounting enforcement. These new regulations apply only to IPOs listing on EU-regulated markets; firms admitted to trading on exchange-r...
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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：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...
