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作者：Ott, Jacob C.
作者单位：Purdue University System; Purdue University
摘要：Basel III introduced the first global banking liquidity requirement: the liquidity coverage ratio (LCR). This paper examines whether loosening the regulatory accounting for the LCR, by including certain municipal bonds in its computation, has a spillover effect on the municipal bond market. In contrast to statements made by regulators, I find that the rule decreases affected bonds' yield spread, relative to unaffected bonds, due to an increase in nonfundamental bank demand for the affected bon...
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作者：Kim, Sehwa; Kim, Seil; Ryan, Stephen G.
作者单位：Columbia University; City University of New York (CUNY) System; Baruch College (CUNY); New York University
摘要：We provide evidence that banks classify fixed-rate debt investment securities as held to maturity (HTM) rather than as available for sale (AFS) when HTM classification provides preferred financial accounting and regulatory capital treatments, not because they have a distinct economically motivated intent and ability to hold the securities to maturity. Specifically, we document predictably divergent security classifications by three categories of banks that differ in whether the regulatory accu...
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作者：Ahn, Jaehan; Hoitash, Rani; Hoitash, Udi; Krause, Eric
作者单位：University of Massachusetts System; University of Massachusetts Boston; Bentley University; Northeastern University; Iowa State University
摘要：We use large, detailed data on individual auditor employment to examine the antecedents of turnover decisions and subsequent career paths of diverse individuals in public accounting-namely women and racial/ethnic minority groups (Asian, Black, and Hispanic). Despite investments in diversity, equity, and inclusion (DEI) recruiting by firms, we observe a higher likelihood of turnover among diverse auditors. Consistent with the principle of homophily, we find that same-group representation is cru...
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作者：Bushman, Robert; Dai, Zhonglan; Zhang, Weining
作者单位：University of North Carolina; University of North Carolina Chapel Hill; University of North Carolina School of Medicine; University of Texas System; University of Texas Dallas
摘要：We conceptualize equity incentive contracting as a dynamic process in which contracting frictions limit the speed at which equity incentives adjust to target levels. Slower adjustment speeds imply more prolonged deviations from value-maximizing targets and thus more severe negative effects on future performance. We find that contracting frictions significantly slow the speed of adjustment to target incentives (SOA). Consistent with frictions prolonging the persistence of deviations from target...
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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：Lennox, Clive; Li, Bing; Qu, Jinxing
作者单位：University of Southern California; City University of Hong Kong; Shanghai University of Finance & Economics
摘要：Prior research finds that audit offices lose market share after they are involved in alleged audit failures. We examine whether such reputation effects are driven by private communications from rival auditors. We determine which offices are likely to be well informed about alleged audit failures by identifying the incoming office of the client accused of misreporting and by identifying law firm connections between each audit firm and the plaintiffs and defendants in each lawsuit. Consistent wi...
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作者：Wang, Di; Cooper, Stuart M.; Chapman, Christopher S.; Calace, Donato
作者单位：Lancaster University; University of Bristol; Kyoto University
摘要：The concept of materiality has acquired great significance in sustainability reporting. Through the theoretical bricolage of boundary objects and boundary work and drawing upon 91 interviews, we trace materiality's evolving role across four interconnected episodes. Our findings show that materiality begins as a multivisionary object that draws the attention of largely unconnected groups. As different actors become more aware of each other, materiality becomes a meeting point object, and then a...
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作者：Chen, A. J. Yuan; Even-Tov, Omri; Kang, Jung Koo; Wittenberg-Moerman, Regina
作者单位：University of British Columbia; University of California System; University of California Berkeley; Harvard University; Northwestern University
摘要：To mitigate information asymmetry about borrowers in developing economies, digital lenders use machine-learning algorithms and nontraditional data from borrowers' mobile devices. Consequently, digital lenders have managed to expand access to credit for millions of individuals lacking a prior credit history. However, short-term, high-interest digital loans have raised concerns about predatory lending practices. To examine how digital credit influences borrowers' financial well-being, we use pro...
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作者：Li, Edward Xuejun; Ramesh, K.; Shen, Min; Wu, Joanna Shuang
作者单位：City University of New York (CUNY) System; Baruch College (CUNY); Rice University; George Mason University; University of Rochester
摘要：Ball and Brown (1968) introduce a method to measure accounting earnings' contribution to price discovery toward the end-of-period price. Building on this method, we examine a comprehensive set of corporate disclosures and document a large gap in their contribution to annual price discovery between bad and good news years (40 percent versus over 60 percent), despite no such difference in stock return variance (partial R2). These patterns are consistent with managers proactively releasing good n...
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作者：Cunningham, Lauren M.; Stein, Sarah E.; Walker, Kimberly; Wolfe, Karneisha
作者单位：University of Tennessee System; University of Tennessee Knoxville; Virginia Polytechnic Institute & State University; University of Illinois System; University of Illinois Urbana-Champaign
摘要：Oversight responsibilities for many audit committees (ACs) are evolving to include some of the hottest topics in the boardroom: enterprise risk management, cybersecurity, and environmental, social, and governance reporting. However, certain ACs avoid overseeing these evolving areas, creating significant variation across boards in the assignment of responsibilities. In this study, we seek to understand how ACs respond when environmental changes create new evolving risks that may extend the boun...
