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作者：Fedyk, Tatiana; Singer, Zvi; Soliman, Mark
作者单位：University of San Francisco; Universite de Montreal; HEC Montreal; University of Southern California
摘要：The valuation of STEM (science, technology, engineering, and math) firms has recently gained attention in the literature. Research has shown that, for valuation of STEM firms, accounting items such as sales growth and R&D expenditures matter more than bottom-line earnings. We examine whether, around the time of the IPO, STEM managers apply discretion over the accounting items most weighted by investors for their valuation. We find that investors tend to weigh sales growth and R&D more heavily ...
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作者：Li, Kevin K.; Sloan, Richard G.
作者单位：University of California System; University of California Riverside; University of California System; University of California Berkeley
摘要：Prior to SFAS 142, goodwill was subject to periodic amortization and a recoverability-based impairment test. SFAS 142 eliminates periodic amortization and imposes a fair-value-based impairment test. We examine the impact of this standard on the accounting for and valuation of goodwill. Our results indicate that the new standard has resulted in relatively inflated goodwill balances and untimely impairments. We also find that investors do not appear to fully anticipate the untimely nature of pos...
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作者：Ittner, Christopher D.; Michels, Jeremy
作者单位：University of Pennsylvania
摘要：This study examines the association between a firm's internal information environment and the accuracy of its externally disclosed management earnings forecasts. Internally, firms use forecasts to plan for uncertain futures. The risk management literature argues that integrating risk-related information into forecasts and plans can improve a firm's ability to forecast financial outcomes. We investigate whether this internal information manifests itself in the accuracy of external earnings guid...
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作者：Cao, Ying; Myers, Linda A.; Tsang, Albert; Yang, Yong George
作者单位：Chinese University of Hong Kong; University of Tennessee System; University of Tennessee Knoxville; York University - Canada
摘要：We examine international differences in the effect of management forecasts (which we use to proxy for voluntary disclosure) on the cost of equity capital (COC) across 31 countries. We find that the issuance of management forecasts is associated with a lower COC worldwide but that the effect of management forecasts on the COC depends on country-level institutional factors. Specifically, management forecasts have a stronger effect on the COC in countries with stronger investor protection and bet...
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作者：Drake, Michael S.; Thornock, Jacob R.; Twedt, Brady J.
作者单位：Brigham Young University; Indiana University System; Indiana University Bloomington
摘要：The internet is an enormous and growing source of information for investors about the opinions of others. Virtually any individual with internet access can express opinions about firms and editorialize about company news. However, to date we know very little about the impact these nontraditional internet intermediaries have on markets. We develop a framework wherein internet information intermediaries fall along a spectrum of professionalism and document a nuanced relationship between coverage...
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作者：Koo, David S.; Ramalingegowda, Santhosh; Yu, Yong
作者单位：University of Illinois System; University of Illinois Urbana-Champaign; University System of Georgia; University of Georgia; University of Texas System; University of Texas Austin
摘要：This study examines how financial reporting quality affects corporate dividend policy. We find that higher quality reporting is associated with higher dividends. This positive association is more pronounced among firms with more severe free cash flow problems and among firms with higher ownership by monitoring-type institutional investors. Further analysis of the relation between reporting quality and under-/over-payment of dividends suggests that reporting quality largely mitigates underpayme...
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作者：Shroff, Nemit
作者单位：Massachusetts Institute of Technology (MIT)
摘要：This paper investigates whether changes in Generally Accepted Accounting Principles (GAAP) affect corporate investment decisions. Using a sample containing forty nine changes in GAAP, I find that changes in accounting rules affect investment decisions. I then examine two mechanisms through which changes in GAAP affect investment. First, I find that changes in GAAP affect investment, particularly R&D expenditures, when firms have financial covenants that are affected by changes in GAAP. Second,...
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作者：Hanlon, Michelle; Maydew, Edward L.; Saavedra, Daniel
作者单位：Massachusetts Institute of Technology (MIT); University of North Carolina; University of North Carolina Chapel Hill; University of California System; University of California Los Angeles
摘要：We examine whether firms hold more cash in the face of tax uncertainty. Because of gray areas in the tax law and aggressive tax avoidance, the total amount of tax that a firm will pay is uncertain at the time it files its returns. The tax authorities can challenge and disallow the firm's tax positions, demanding additional cash tax payments. We hypothesize that firms facing greater tax uncertainty hold cash to satisfy these potential future demands. We find that both domestic firms and multina...
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作者：Mattei, Marco Maria; Platikanova, Petya
作者单位：University of Bologna; Universitat Ramon Llull; Escuela Superior de Administracion y Direccion de Empresas (ESADE)
摘要：We examine how product market threats influence the precision of analyst forecasts. Greater competitive threats may make forecasting more difficult by increasing the uncertainty regarding future cash flows and by influencing the quality of financial disclosure. Using a firm-specific measure of product market threats (i.e., fluidity), we find that analysts are more likely to be less precise forecasting earnings for highly fluid firms and that the lack of precision is not fully explained by perf...
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作者：Jiang, Liangliang; Zhou, Hui
作者单位：Hong Kong Polytechnic University; University of Melbourne
摘要：We investigate the role of audit verification in the resolution process following debt covenant violations. Using two sets of proxies for demand-audit fees and the independence and diligence of audit committees-we find evidence that covenant violations result in a demand for differentially higher levels of audit verification. Further analyses demonstrate the link between the increased demand for audit verification and the mechanisms designed to control agency costs in debt contracts. We docume...
