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作者：Krishnan, Gopal V.; Srinidhi, Bin; (Nancy) Su, Lixin
作者单位：Hong Kong Polytechnic University; George Mason University
摘要：This paper provides evidence consistent with firms with Last-in-first-out (LIFO) inventory policy being priced by the market as having lower information risk than First-in-first-out (FIFO) firms. Furthermore, the paper shows that this pricing differential is sustained after controlling for accruals quality, suggesting that the inventory policy signals some information risk characteristics that are not captured by accruals quality measure. We investigate the relation between inventory policy an...
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作者：Olsson, Per
作者单位：Duke University
摘要：Krishnan et al. (Review of Accouting Studies, 2008) investigate how the choice of LIFO versus FIFO affects firms' accruals quality and cost of capital. The authors show that LIFO firms have better accruals quality and lower cost of capital than FIFO firms and that the cost of capital effect associated with the inventory valuation method is not subsumed by differences either in fundamental risk or accruals quality between LIFO and FIFO firms. This discussion is focused on key design choices and...
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作者：Lev, Baruch; Ryan, Stephen G.; Wu, Min
作者单位：New York University; University of Hong Kong
摘要：Research on the usefulness of financial information generally focuses on the innovation in the information examined, such as an earnings surprise or cash flow growth. Consequently, prior research sheds little light on the role of the rich historical record of financial information in users' decision-making. Using a sample of published restatements of earnings, we show that the revision of the historical pattern of earnings, distinct from the magnitude of the restatement and its impact on curre...
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作者：Shevlin, Terry
作者单位：University of Washington; University of Washington Seattle
摘要：Aboody and Kasznik (Rev Acc Stud, this issue, 2008) develop and test cross-sectional predictions about how firms might respond to the 2003 dividend tax cuts. My discussion suggests some alternative firm responses, a restructuring of the main tests to be consistent with the theory and predictions, and an interpretation of the magnitude of the observed associations. Overall, the paper addresses an interesting issue, recognizes that executive compensation is endogenous in this event, and adds to ...
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作者：Louis, Henock; Robinson, Dahlia; Sbaraglia, Andrew
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; Arizona State University; Arizona State University-Tempe
摘要：We find no evidence of accrual mispricing for firms that disclose accrual information at earnings announcements. For these firms, the market differentiates the discretionary from the nondiscretionary components of the earnings surprise. In contrast, the market fails to distinguish between the discretionary and the nondiscretionary components of the earnings surprise for firms that do not disclose accrual information at earnings announcements. These firms experience some stock price correction ...
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作者：Christensen, Theodore E.
作者单位：Brigham Young University
摘要：Gleason and Mills (2008, Review of Accounting Studies) extend prior research investigating whether investors detect obvious earnings management. They improve on previous efforts to answer this question by examining firms with a clear motivation to manage earnings and by investigating a specific earnings management tool. They investigate firms that fall short of analysts' expectations when income tax expense is based on the third quarter effective tax rate but meet expectations by reducing the ...
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作者：Goex, Robert F.
作者单位：University of Fribourg
摘要：I study the economic consequences of tax deductibility limits on salaries for the design of incentive contracts. The analysis is based on an agency model in which the firm's cash flow is a function of the agent's effort and an observable random factor beyond the agent's control. According to my analysis, limiting the tax deductibility of fixed wages has two consequences. The principal rewards the agent on the basis of the observable random factor and adjusts the amount of performance-based pay...
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作者：Oler, Derek K.
作者单位：Indiana University System; IU Kelley School of Business; Indiana University Bloomington
摘要：This paper investigates whether an acquirer's pre-announcement cash level can predict post-acquisition returns. Harford (1999, Journal of Finance, 54, 1969-1997) shows that some cash-rich acquirers have lower announcement period returns than other acquirers, suggesting the market partially anticipates poor future performance. This paper shows that the acquirer's cash level is also strongly and negatively predictive of post-acquisition returns, indicating that the announcement response is incom...
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作者：Monahan, Steven J.
作者单位：INSEAD Business School
摘要：Using country-level data, Ball et al. (2008, Review of Accounting Studies) (BRS hereafter) demonstrate that debt-market (equity-market) size is (is not) positively associated with measures of timely loss recognition and asymmetric timely loss recognition. They argue that these results imply that debt holders-not equity holders-are the primary source of demand for timely accounting reports. They also argue that their results support the notion that the costly contracting school of thought is mo...
