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作者：Ashraf, Musaib; Sunder, Jayanthi
作者单位：Michigan State University; Michigan State University's Broad College of Business; University of Arizona
摘要：Data breach disclosure laws are state-level disclosure mandates intended to protect individuals from the consequences of identity theft. However, we argue that the laws help reduce shareholder risk by encouraging managers to take real actions to reduce firms' exposure to cyber risk. Consistent with this argument, we find an on -average decrease in shareholder risk, proxied by cost of equity, after the staggered passage of these laws. We also find the effect is attenuated for firms that already...
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作者：Cadman, Brian; Heinle, Mirko S.; Macciocchi, Daniele
作者单位：University of Pennsylvania; University of Miami
摘要：We investigate the relationship between insider horizon and disclosure policy. First, we develop and analyze a rational expectations model assuming insiders are able to commit to a disclosure policy. Insiders with a short horizon prefer more disclosure and are willing to bear costs of disclosure to reduce information asymmetries among capital market participants. We then empirically test our predictions in the setting of newly public firms and firms where the CEO is approaching retirement. We ...
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作者：Commerford, Benjamin P.; Mullis, Curtis; Stefaniak, Chad M.
作者单位：University of Kentucky; University System of Georgia; Georgia State University; University of South Carolina System; University of South Carolina Columbia
摘要：In a quasi-experiment with external (EA), in-house internal (IIA), and outsourced internal auditors (OIA) as participants in their natural roles, we compare auditors' internal control evaluations in the presence of differing management reporting motives. Grounded in Organizational Identity (OID) Theory, we find EAs' evaluations are more (less) lenient when management's motive is less (more) self-serving. We provide evidence that management's motives affect EAs' evaluations because management i...
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作者：Hendricks, Bradley E.; Neilson, Jed J.; Shakespeare, Catherine; Williams, Christopher D.
作者单位：University of North Carolina; University of North Carolina Chapel Hill; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; University of Michigan System; University of Michigan
摘要：Regulation is often proposed, developed, and finalized over a lengthy rule-making period prior to its adoption. We examine the period over which banking authorities discussed, adopted, and implemented Basel III to understand how firms respond to proposed regulation. We find evidence to suggest that affected banks not only lobbied rule-makers against it but also made strategic financial reporting changes and altered their business models in ways that reduced their exposure to the proposed rule ...
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作者：Drake, Michael S.; Moon Jr, James R.; Warren, James D.
作者单位：Brigham Young University; University System of Georgia; Georgia Institute of Technology; Texas A&M University System; Texas A&M University College Station; Mays Business School
摘要：We employ a novel machine learning technique to classify analysts' forecast revisions into five types based on how the revision weighs publicly available signals. We label these forecast types as quant, sundry, contrarian, herder, and independent forecasts. Our tests reveal that a greater diversity of forecast types within the consensus is associated with increased consensus dispersion and improved consensus accuracy. Additionally, consensus diversity is associated with an improved information...
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作者：Manthei, Kathrin; Sliwka, Dirk; Vogelsang, Timo
作者单位：University of Cologne; Frankfurt School Finance & Management
摘要：We study the profit effects and interplay of two core accounting practices in a field experiment in a large retail chain. In a 2 X 2 factorial design, we vary (1) whether store managers obtain decision-facilitating information on a profit metric and (2) whether they receive performance pay based on the same metric. We find that both practices increase profits significantly. In contrast to reasoning based on standard economic theory, we do not find complementarity between both interventions. Ra...
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作者：Jiang, Xu; Kanodia, Chandra; Zhang, Gaoqing
作者单位：Duke University; University of Minnesota System; University of Minnesota Twin Cities
摘要：Corporate managers are often better informed than outside investors about the uncertain future benefits of investments. However, information about investment prospects is not verifiable and therefore not amenable to direct disclosure, but instead inferred by investors from other accounting disclosures. Given this situation, we study the normative question of how the market's perceptions of uncertainty and its beliefs about the expected level of future benefits of investment should factor into ...
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作者：Martin, Xiumin; Seo, Hojun; Yang, Jun; Kim, Daniel Sungyeon; Martel, Jordan
作者单位：Washington University (WUSTL); Purdue University System; Purdue University; Indiana University System; Indiana University Bloomington; Chung Ang University
摘要：We study how corporate boards set earnings performance targets in CEOs' annual incentive plans (AIPs) and the implications for strategic management earning guidance. We find that corporate boards rely on management and analyst information in setting the earnings performance targets, and the weight placed on each signal increases with its precision. We also find that management earnings guidance issued before compensation committee meetings (event-window management forecast (MF)) is more pessim...
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作者：Holzman, Eric R.; Miller, Brian P.; Twedt, Brady J.
作者单位：Indiana University System; Indiana University Bloomington; IU Kelley School of Business; Texas A&M University System; Texas A&M University College Station; Mays Business School
摘要：A longstanding literature suggests that earnings provide the market with relevant information about firm performance, but one often overlooked benefit is their role in disciplining market expectations. This study examines the role of earnings announcements in constraining potential mispricing associated with firm-specific media sentiment. We show that media sentiment-driven quarterly returns (orthogonal to risk factors and fundamental news) largely reverse when public earnings are released. Ou...
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作者：McClure, Charles G.
作者单位：University of Chicago
摘要：I develop a structural model to quantify the costs of tax avoidance. In the model, the firm trades off tax savings with tax audit risk, financial reporting considerations, and operational frictions imposed by tax avoidance, the last of which I label as nontax costs. The estimated parameters suggest nontax costs, which are difficult to observe, decrease pretax income by 6.4 percent or $58 million per firm-year. The large magnitude of this estimate can explain why firms appear to underutilize ta...
