-
作者：De Simone, Lisa; Robinson, John R.; Stomberg, Bridget
作者单位：Stanford University; University of Texas System; University of Texas Austin; University System of Georgia; University of Georgia
摘要：We examine the extent to which management discretion affects the reserve for unrecognized tax benefits. We analyze the financial statement disclosures of 19 paper companies that received a total of $6.4 billion in refundable excise taxes during 2009. All of these companies included the refunds in financial income, but 14 excluded all or part of the refunds from taxable income. Despite the magnitude and unprecedented nature of the exclusion, we find that only five of the excluding firms accrued...
-
作者：Baber, William R.; Krishnan, Jagan; Zhang, Yinqi
作者单位：Georgetown University; Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University; American University
摘要：The Sarbanes-Oxley Act (SOX) requires that firms wait 1 year before hiring an individual employed as a member of the external audit team. SOX's intent is to reduce the perceived loss of auditor independence due to affiliated hiring. SOX also requires fully independent audit committees and disclosure of directors with financial expertise. Using a sample of financial executive hires during the pre-SOX period, we find that earnings response coefficients (ERCs) decline following hires of individua...
-
作者：Dong, Minyue; Ryan, Stephen; Zhang, Xiao-Jun
作者单位：University of Lausanne; University of California System; University of California Berkeley
摘要：SFAS No. 115 requires firms to recognize available-for-sale (AFS) securities at fair value with accumulated unrealized gains and losses (AUGL) recorded in accumulated other comprehensive income. Firms reclassify AUGL to net income when they realize gains and losses. We refer to the amount reclassified each period by RECLASS. As of 1998, SFAS No. 130 requires firms to present RECLASS prominently in their financial statements. We investigate the incremental explanatory power of RECLASS for banks...
-
作者：Esplin, Adam; Hewitt, Max; Plumlee, Marlene; Yohn, Teri Lombardi
作者单位：University of Alberta; Indiana University System; Indiana University Bloomington; Utah System of Higher Education; University of Utah
摘要：Researchers, practitioners, and standard setters emphasize the importance of disaggregating financial statements into operating and financial activities. However, there is a lack of research demonstrating that this disaggregation improves forecasts of profitability. In this study, we consider whether and when the operating/financial disaggregation improves forecasts of profitability. Contrary to the use of an aggregate forecasting approach by most related prior research, we first show that the...
-
作者：Truong, Cameron; Corrado, Charles
作者单位：Monash University
摘要：We examine the effect of options trading volume on the stock price response to earnings announcements over the period 1996-2007. Contrary to previous studies, we find no significant difference in the immediate stock price response to earnings information announcements in samples split between firms with listed options and firms without listed options. However, within the sample of firms with listed options stratified by options volume, we find that higher options trading volume reduces the imm...
-
作者：Cao, Zhiyan; Narayanamoorthy, Ganapathi S.
作者单位：University of Washington; University of Washington Tacoma; University of Illinois System; University of Illinois Urbana-Champaign
摘要：We study whether and how financial reporting concerns are priced by insurers that sell Directors' and Officers' (D&O) insurance to public firms. As D&O insurers typically assume the liabilities arising from shareholder litigation, the premiums they charge for D&O coverage reflect their assessment of a company's litigation risk. Using a sample of public firms in the 2001-2004 Tillinghast D&O insurance surveys, we document that firms with lower earnings quality or prior accounting restatements p...
-
作者：Campbell, John L.; Chen, Hsinchun; Dhaliwal, Dan S.; Lu, Hsin-min; Steele, Logan B.
作者单位：University System of Georgia; University of Georgia; University of Arizona; University of Arizona; Korea University; National Taiwan University; University of Connecticut
摘要：Beginning in 2005, the Securities and Exchange Commission (SEC) mandated firms to include a risk factor section in their Form 10-K to discuss the most significant factors that make the company speculative or risky. In this study, we examine the information content of this newly created section and offer two main results. First, we find that firms facing greater risk disclose more risk factors, and that the type of risk the firm faces determines whether it devotes a greater portion of its discl...
-
作者：Goncharov, Igor; Riedl, Edward J.; Sellhorn, Thorsten
作者单位：WHU - Otto Beisheim School of Management; Boston University
摘要：This paper investigates the effect of fair value reporting and its attributes on audit fees. We use as our primary sample the European real estate industry around mandatory IFRS adoption (under which reporting of property fair values becomes compulsory), due to its unique operating and reporting characteristics. We document lower audit fees for firms reporting property assets at fair value relative to those employing depreciated cost-a difference that appears driven, in part, by impairment tes...
-
作者：Amir, Eli; Einhorn, Eti; Kama, Itay
作者单位：Tel Aviv University; City St Georges, University of London
摘要：Though ample empirical evidence alludes to the importance of disaggregated accounting data in the context of earnings management, extant theory considers biases in reporting mostly at the aggregated level of the accounting report. By introducing accounting disaggregation into the conventional theoretical framework of earnings management, this study highlights the essential role that disaggregated accounting data play in detecting and mitigating reporting manipulations. Disaggregated reports ar...
-
作者：Franz, Diana R.; HassabElnaby, Hassan R.; Lobo, Gerald J.
作者单位：University System of Ohio; University of Toledo; University of Houston System; University of Houston
摘要：We examine the impact of differential incentives arising from proximity to debt covenant violation on earnings management. We reason that firms with loans close to violation or in technical default of their debt covenants have a stronger incentive to engage in earnings management than firms that are far from violating their debt covenants. We find results consistent with this expectation. Firms close to violation or in technical default of their debt covenants engage in higher levels of accoun...
