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作者：Compton, Ying L.; Gore, Angela K.; Kulp, Susan L.
作者单位：U.S. Securities & Exchange Commission (SEC); George Washington University
摘要：Although theory suggests its importance, empirical evidence on the relation between exogenous termination risk and contracted compensation packages is limited. This study takes a different approach by exploring determinants of contracted annual compensation and severance packages for city managers. Results indicate that managers exposed to greater exogenous political risk- i.e., those employed by municipalities where voters are more likely to recall elected officials-are 6 %-11 % more likely t...
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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：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...
