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作者：Demerjian, Peter R.
作者单位：University of Washington; University of Washington Seattle
摘要：I examine the use of financial covenants when contracting for debt under uncertainty. Uncertainty, in the context of this study, is a lack of information about future economic events and their consequences for the borrower's creditworthiness. I examine the implications of ex ante uncertainty that is resolved by information received following loan initiation but prior to maturity. I argue that financial covenants, by transferring control rights ex post, provide a trigger for creditor-initiated ...
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作者：Anantharaman, Divya
作者单位：Rutgers University System; Rutgers University New Brunswick; Rutgers University Newark
摘要：The increasing use in financial reporting of estimates prepared by specialists has raised questions on the role these specialists play in financial reporting quality. In the setting of defined-benefit pension accounting-where the pension actuary is involved as a specialist-I examine whether pension sponsors with strong incentives to improve reported funding status pressure their actuaries for aggressive (obligation-reducing) assumptions. Among these sponsors, I find that those that are economi...
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作者：Chen, Ester; Gavious, Ilanit; Lev, Baruch
作者单位：Ben-Gurion University of the Negev; New York University
摘要：Studies comparing IFRS with U.S. GAAP generally focus on differences in the attributes and consequences of the recognized financial items. We, in contrast, focus on voluntary disclosure resulting from arguably the most significant difference between IFRS and GAAP: the capitalization of development costs-the D of R&D-required by IFRS but prohibited by GAAP. Using a sample of Israeli high-technology and science-based firms, some using IFRS and others U.S. GAAP, we document a significant external...
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作者：Jones, Stewart
作者单位：University of Sydney
摘要：Much bankruptcy research has relied on parametric models, such as multiple discriminant analysis and logit, which can only handle a finite number of predictors (Altman in The Journal of Finance 23 (4), 589-609, 1968; Ohlson in Journal of Accounting Research 18 (1), 109-131, 1980). The gradient boosting model is a statistical learning method that overcomes this limitation. The model accommodates very large numbers of predictors which can be rank ordered, from best to worst, based on their overa...
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作者：Hope, Ole-Kristian; Wu, Han; Zhao, Wuyang
作者单位：University of Toronto; BI Norwegian Business School; Hautes Etudes Commerciales (HEC) Paris
摘要：Exit theory predicts a governance role for outside blockholders' exit threats, but this role could be ineffective if managers' potential private benefits exceed their loss in stock-price declines caused by the blockholders' exits. We test this prediction using the Split-Share Structure Reform (SSSR) in China, which provided a large exogenous and permanent shock to the cost for outside blockholders to exit. We find that firms whose outside blockholders experience an increase in exit threats imp...
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作者：Lennox, Clive S.; Kausar, Asad
作者单位：University of Southern California; Nanyang Technological University
摘要：Estimation risk occurs when individuals form beliefs about parameters that are unknown. We examine how auditors respond to the estimation risk that arises when they form beliefs about the likelihood of client bankruptcy. We argue that auditors are likely to become more conservative when facing higher estimation risk because they are risk-averse. We find that estimation risk is of first-order importance in explaining auditor behavior. In particular, auditors are more likely to issue going-conce...
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作者：Jackson, Andrew B.; Rountree, Brian R.; Sivaramakrishnan, Konduru
作者单位：University of New South Wales Sydney; Rice University
摘要：This study develops a theory that predicts the lower the degree to which firms' earnings are correlated with the industry the greater the probability a firm will issue a biased signal of firm performance. The theory provides for causal predictions in our empirical tests in which we examine the probability a firm will be subject to an Accounting and Auditing Enforcement Release (AAER). The empirical findings provide support for the theory, even after controlling for various predictive variables...
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作者：Chi, Wuchun; Myers, Linda A.; Omer, Thomas C.; Xie, Hong
作者单位：National Chengchi University; University of Tennessee System; University of Tennessee Knoxville; University of Nebraska System; University of Nebraska Lincoln; University of Kentucky
摘要：We examine the associations between audit partner pre-client and client-specific experience and audit quality using data from Taiwan, where signing audit partner names are disclosed. Using discretionary accruals and interest rate spreads to proxy for audit quality and perceptions of audit quality, respectively, we find that both pre-client and client-specific experience improve audit quality and creditor perceptions of audit quality. We also find that audit partner pre-client experience is pos...
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作者：Joos, Peter R.; Piotroski, Joseph D.
作者单位：INSEAD Business School; Stanford University
摘要：We document that the relative placement of analysts' target price within their subjective distribution of scenario-based valuations for the covered firm (i.e., tilt) is informative to investors. When analysts forecast price appreciation, tilt incrementally predicts ex post valuation errors and realized returns; the predictive value of tilt disappears when analysts forecast price declines. In additional analyses, we find that tilt appears to reflect an optimistic bias in target price forecasts ...
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作者：Chung, Sung Gon; Goh, Beng Wee; Ng, Jeffrey; Yong, Kevin Ow
作者单位：Wayne State University; Singapore Management University; Hong Kong Polytechnic University; Peking University; Peking University Shenzhen Graduate School (PKU Shenzhen)
摘要：Some firms voluntarily make disclosures about the controls and processes in place to ensure the reliability of fair value estimates. Consistent with these disclosures being driven by investors' concerns about the reliability of their SFAS 157 estimates, we find that firms with more opaque estimates are more likely to provide such disclosures. We then examine whether these disclosures improve investors' perception about the reliability of fair value estimates. We find that they are associated w...
