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作者：Armstrong, Christopher S.; Gallimberti, Carlo Maria; Tsui, David
作者单位：Stanford University; Analysis Group Inc.; Boston College; Analysis Group Inc.
摘要：We investigate whether differences in the mix of financial covenants in debt contracts (i.e., covenant heterogeneity) reflect-and provide a way for lenders to elicit, or screen-borrowers' pre-contractual private information about their future risk profile. Consistent with adverse selection theories, we predict and find that borrowers with higher future risk negotiate loans with covenants that are less sensitive to performance, compared to borrowers with lower future risk. We differentiate betw...
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作者：Hayne, Christie; Peecher, Mark E.; Pickerd, Jeffrey; Zhou, Yuepin (Daniel)
作者单位：University of Illinois System; University of Illinois Urbana-Champaign; Brigham Young University
摘要：Although rapidly evolving, quality control (QC) systems are a poorly understood determinant of audit quality. We interview 27 QC system leaders to understand how they navigate the challenges they face in changing QC systems. We find that many challenges-including obtaining buy-in, evaluating costs and benefits, and advancing proactive over reactive changes-are caused by conflicting demands arising internally. Consistent with institutional theory, our data reveal that leaders respond to conflic...
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作者：He, Kaigang; Li, Zengquan; Yang, Yong George; Zhang, Ivy Xiying
作者单位：Shanghai University of International Business & Economics; Shanghai University of Finance & Economics; Chinese University of Hong Kong; University of California System; University of California Riverside
摘要：We study whether sell-side financial analysts' social ties to firm management help them discern firms' financial reporting frauds and, upon such detection, how the connected analysts disseminate the information. Using unique data from China, we find that, although unconnected analysts do not manifest a significant change in their likelihood of covering the fraud firms nor in issuing more downgrade stock ratings, connected analysts are significantly more likely to drop coverage right after thes...
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作者：Westermann, Kimberly D.; Downey, Denise Hanes
作者单位：California State University System; California Polytechnic State University San Luis Obispo; Villanova University
摘要：This study aims to understand international rotations (secondments) as a brokerage mechanism within globally networked public accounting firms (GNFs). Through interviews with 29 secondees on tour to or from the U.S. (individuals on rotation from one member firm to another member firm in a specified role for a fixed period) and 11 firm leaders, we find that secondments are viewed as a critical brokerage function in performing global client service and global risk management. Specifically, secon...
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作者：Bentley, Jeremiah W.; Bloomfield, Matthew J.; Bloomfield, Robert J.; Lambert, Tamara A.
作者单位：University of Massachusetts System; University of Massachusetts Amherst; University of Pennsylvania; Cornell University; Lehigh University
摘要：Agents often inflate measured performance by distorting operating decisions (e.g., real earnings management) and/or reporting decisions (e.g., accruals management). Across four studies, we find that public judgments of distortion's acceptability largely reflect assessments of how harmful and norm-violating the distortion is. Judgments of operating distortion primarily reflect assessments of harm, whereas judgments of reporting distortion primarily reflect assessments of norm violation. These r...
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作者：Fox, Zackery D.
作者单位：Brigham Young University
摘要：Despite the growing use of subjective performance incentives used in executive bonuses, empirical evidence on their effectiveness remains inconclusive. This study explores three aspects of subjective metrics in bonus plan design: their prevalence, the goals they target, and their impact on managerial behavior and firm outcomes. First, I document 53.8 percent of CEO bonus plans include at least one subjective performance measure, and among these plans, an average of 38.9 percent of total bonus ...
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作者：Bonsall VI, Samuel B.; Donovan, John B.; Holzman, Eric R.; Wang, Xue; Yang, Daniel G.
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; University of Notre Dame; Indiana University System; IU Kelley School of Business; Indiana University Bloomington; University System of Ohio; Ohio State University; Hong Kong University of Science & Technology
摘要：Despite private access to managers, issuer-paid credit rating agencies (CRAs) are often criticized for failing to promptly reflect material negative private information in their ratings and being ineffective corporate watchdogs. We utilize a novel dataset of private SEC investigations to examine the timeliness and informativeness of CRAs' rating adjustments in response to material negative private information. Our evidence suggests that CRAs adjust ratings downward within a quarter following t...
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作者：Chapman, Kimball L.; Lee, Ruby; Reiter, Nayana; Williams, Christopher D.
作者单位：Arizona State University; Arizona State University-Tempe; State University System of Florida; University of Florida; University of Toronto; University of Michigan System; University of Michigan
摘要：We examine the role of investor relations (IR) in private debt markets. We find that firms with dedicated IR officers (IROs) receive significantly lower loan spreads, particularly when lenders require a better understanding of the borrower's risk profile. Among firms with IROs, those with longer tenured officers experience lower spreads, especially when IROs also manage financial responsibilities. To address endogeneity concerns, we demonstrate that loan spreads decline when a firm establishes...
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作者：Jin, Hengda; Stubben, Stephen R.; Ton, Karen
作者单位：Texas A&M University System; Texas A&M University College Station; Mays Business School; Utah System of Higher Education; University of Utah; Villanova University
摘要：Using GPS location data from customers' mobile devices, we develop measures of customer shopping behavior intended to capture the likelihood that customers will shop again in the future, and we examine their associations with firms' financial decisions and outcomes. We measure customers' propensity to return using the frequency, distance, duration, and timing of their past visits to a firm's retail locations. We find a positive association between customers' propensity to return and the persis...
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作者：Kim, Eunjee
作者单位：Texas A&M University System; Texas A&M University College Station
摘要：Nonactivist investors that own more than 5 percent of a firm must report their holdings by filing a 13G in which they must commit to not influencing control of the firm. Mutual fund families are the most common investors filing 13Gs. I study whether the 13G requirement affects mutual fund families' voting in proxy contests. I find mutual fund families that file the form are less likely to vote for activist proposals than are those that do not, suggesting that the requirement discourages mutual...
