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作者：Kim, Seil; Kraft, Pepa; Ryan, Stephen G.
作者单位：New York University
摘要：Prior research shows that firms' financial statement comparability improves the accuracy of market participants' valuation judgments and thus may reduce firms' costs of capital. Distinct from prior research focusing on the equity market, we develop measures of comparability relevant to debt market participants based on the within-industry variability of Moody's adjustments to reported accounting numbers for the purposes of credit rating. We examine two sets of adjustments: (1) to the interest ...
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作者：Kallunki, Juha-Pekka; Pyykko, Elina
作者单位：University of Oulu
摘要：We hypothesize that the information on a CEO's and directors' (board members) past personal payment default entries in public credit data files significantly increases the predictive power of Altman's (in J Fin 23(4):589-609, 1968) and Ohlson's (In J Acc Res 18(1):109-131, 1980) distress prediction models. We base our hypothesis on the literature showing that (1) managerial traits such as overconfidence, over-optimism, and the illusion of control affect corporate decisions and that (2) these s...
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作者：Cheynel, Edwige
作者单位：Columbia University
摘要：This paper explores the links between firms' voluntary disclosures and their cost of capital. Existing studies investigate the relation between mandatory disclosures and cost of capital and find no cross-sectional effect but a negative association in time-series. In this paper, I find that when disclosure is voluntary firms that disclose their information have a lower cost of capital than firms that do not disclose, but the association between voluntary disclosure and cost of capital for discl...
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作者：Barth, Mary E.; Hodder, Leslie D.; Stubben, Stephen R.
作者单位：Stanford University; Indiana University System; Indiana University Bloomington; University of North Carolina; University of North Carolina Chapel Hill
摘要：This study seeks to determine whether employee stock options share key characteristics of liabilities or equity. Consistent with warrant pricing theory, we find that common equity risk and expected return are negatively associated with the extent to which a firm has outstanding employee stock options, which is opposite to the association for liabilities. We also find the following. (1) The association is positive for firms that reprice options and less negative for firms that have options with...
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作者：Lyle, Matthew R.; Callen, Jeffrey L.; Elliott, Robert J.
作者单位：University of Toronto; Northwestern University; University of Adelaide; University of South Australia
摘要：This study extends the accounting-based valuation framework of Ohlson (Contemp Acc Res 11(2):661-687, 1995) and Feltham and Ohlson (Acc Rev 74(2):165-183, 1999) to incorporate dynamic expectations about the level of systematic risk in the economy. Our model explains recent empirical findings documenting a strong negative association between changes in economy-wide risk and future stock returns. Importantly, the model also generates costs of capital that are solely a linear function of accounti...
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作者：Raman, Kartik; Shivakumar, Lakshmanan; Tamayo, Ane
作者单位：Bentley University; University of London; London Business School; University of London; London School Economics & Political Science
摘要：This study examines how takeover decisions are influenced by the quality of information in target firms' earnings. We show that bidders prefer negotiated takeovers in deals involving targets with poor earnings quality. Moreover, earnings quality and takeover premiums are negatively related in negotiated takeovers, suggesting that bidders obtain valuable private information through negotiations. We also find that bidders share information risk with target shareholders by paying with more equity...
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作者：Altamuro, Jennifer; Zhang, Haiwen
作者单位：University System of Ohio; Ohio State University
摘要：This research examines whether the fair value of mortgage servicing rights (MSRs) based on managerial inputs (Level 3) better reflects the cash flow and risk characteristics of the underlying assets than the fair value of MSRs based on market inputs (Level 2). Using mortgage servicing fees as a proxy for the underlying cash flows, we find that the valuation multiples for MSRs based on Level 3 inputs are more positively associated with the persistence of future servicing fees compared with the ...
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作者：Koh, Kevin; Rajgopal, Shiva; Srinivasan, Suraj
作者单位：Nanyang Technological University; Emory University; Harvard University
摘要：We provide evidence on the long-standing concern about the potential conflicts of interest of auditors that provide clients with non-audit services using rarely explored non-audit services fee data from 1978 to 1980. In this setting, we find evidence of improved earnings quality when auditors provide non-audit services, especially those related to information services. This is consistent with better audit quality resulting from knowledge spillovers in the joint offering of audit and consulting...
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作者：Cadman, Brian D.; Rusticus, Tjomme O.; Sunder, Jayanthi
作者单位：Utah System of Higher Education; University of Utah; Northwestern University; University of Arizona
摘要：Option grant vesting terms are a contractual provision that is shaped by accounting standards and other economic factors. We examine the effect of accounting standards, specifically SFAS 123(R), on the vesting terms of stock option grants while also modeling other economic determinants of this contract feature. We document significant variation in stock option grant vesting periods and patterns suggesting that firms actively choose vesting terms. Consistent with financial reporting incentives ...
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作者：Kravet, Todd; Muslu, Volkan
作者单位：University of Texas System; University of Texas Dallas; University of Houston System; University of Houston
摘要：We examine the association between changes in companies' textual risk disclosures in 10-K filings and changes in stock market and analyst activity around the filings. We find that annual increases in risk disclosures are associated with increased stock return volatility and trading volume around and after the filings. Increases in risk disclosures are also associated with more dispersed forecast revisions around the filings. In contrast to prior literature documenting resolved uncertainties in...
