-
作者：Yehuda, Nir; Armstrong, Christopher S.; Cohen, Daniel; Zhou, Xiaolu
作者单位：University of Delaware; Stanford University; Vanderbilt University; Chinese University of Hong Kong
摘要：We examine how firms' contractual relationships with their employees affect the design of their debt contracts, and the use of financial covenants in particular. Viewing the firm as the nexus of both explicit and implicit contractual relationships, we argue that managers cater to their employees' preferences when negotiating contractual terms with creditors. We argue that an increase in unemployment-insurance benefits reduces employees' cost of job loss, which, in turn, allows managers to take...
-
作者：Baugh, Matthew D.; Schmardebeck, Roy
作者单位：Arizona State University; Arizona State University-Tempe; University of Tennessee System; University of Tennessee Knoxville
摘要：Policies and procedures that centralize decision making within an audit firm create auditor style effects. Prior research suggests this style increases financial-statement comparability, implicitly making financial statements more useful. However, a potential hazard of auditor style is the propagation of decision errors. We examine the association between auditor style and common disclosure issues among audit clients. We measure auditor style as the presence of a common auditor and use comment...
-
作者：Cianciaruso, Davide; Marinovic, Ivan; Smith, Kevin
作者单位：New Economic School; Stanford University
摘要：We study the impact of asymmetric (i.e., conservative or aggressive) disclosure on a firm's price in the classic setting in which its stock is traded by risk-averse investors and noise or liquidity traders. We show that asymmetric accounting policies alter the relative risk faced by investors when they short versus long, which causes market liquidity to differ for positive versus negative demand shocks. As a result, accounting conservatism raises firms' valuations and lowers their expected ret...
-
作者：Schafer, Peter
作者单位：Technical University of Munich
摘要：I predict that relative performance evaluation (RPE) CEOs avoid strategic differentiation and increase the correlation of their firms' returns with that of their peers. This prediction follows from a moral hazard model integrating strategic differentiation decisions: Differentiation enhances performance but exposes firms to risks not shared with peers, and the weakening RPE's risk-shielding effect. Consistent with my prediction, I find evidence that changes in peer-group correlation are higher...
-
作者：Cussatt, Marc; Demere, Paul
作者单位：Clemson University; University System of Georgia; University of Georgia
摘要：We explore whether income tax accounting (ITA) for pensions provides measurement benefits incremental to U.S. GAAP. We use publicly reported Form 5500 defined-benefit pension expense and funding measures, which are calculated using ITA rules, and contrast them with parallel GAAP amounts. We document that ITA measures are more strongly associated with market value, future cash contributions, the cost of equity capital, and credit ratings than comparable GAAP measures, particularly when ITA bett...
-
作者：Packard, Heidi A.; Pawliczek, Andrea; Skinner, A. Nicole
作者单位：University of Michigan System; University of Michigan; University of Colorado System; University of Colorado Boulder; University System of Georgia; University of Georgia
摘要：This paper examines voluntary disclosure in the context of shareholder scrutiny of executive compensation contracts. We find that firms voluntarily increase discussion of their performance within their CD&A disclosures when peer-benchmarked compensation relative to performance is high. In contrast, we do not find a similar increase in performance discussion in the corresponding MD&A disclosures, which suggests that the effect is not driven by firms' general disclosure practices. We also find t...
-
作者：Jacob, Martin; Zerwer, Kira Lena
作者单位：University of Navarra; IESE Business School; WHU - Otto Beisheim School of Management
摘要：This paper examines investment responses to emission taxes and the role of tax incidence in passing on tax burdens. Using private firms from Spain and the introduction of an emission tax in 2013 in the Autonomous Community Valenciana, we show that investments decline in response to the emission tax. Importantly, this investment decline does not depend on the level of pollution but on economic factors related to tax incidence. Investments in firms operating in highly competitive markets, firms ...
-
作者：Narayanamoorthy, Gans; Page, John; Song, Bohan
作者单位：Tulane University; University of Alberta
摘要：Insurance pricing is subject to stricter regulation in some states than others. This cross-sectional variation, coupled with the occurrence of staggered deregulation in several states, enables a powerful test of the political cost hypothesis that managers manipulate accruals to mitigate adverse effects of rate regulation. We show that insurers understate their loss reserve accruals in more regulated regimes, a finding that contrasts with most prior studies documenting expense-increasing accrua...
-
作者：Beneish, Messod D.; Farber, David B.; Glendening, Matthew; Shaw, Kenneth W.
作者单位：Indiana University System; IU Kelley School of Business; Indiana University Bloomington; Indiana University System; Indiana University Indianapolis; IU Kelley School of Business; University of Missouri System; University of Missouri Columbia
摘要：This study examines the incremental predictive power of aggregate measures of financial misreporting for recession and real gross domestic product (GDP) growth. We draw on prior research suggesting that misreporting has real economic effects because it represents misinformation on which firms base their investment, hiring, and production decisions. We find that aggregate M-Score incrementally predicts recessions at forecast horizons of five to eight quarters ahead. We also find that aggregate ...
-
作者：Keusch, Thomas
作者单位：INSEAD Business School
摘要：Using hand-collected data on CEO appointments during shareholder activism campaigns, this study examines the relation between activist involvement in CEO recruiting and frictions in CEO hiring decisions. The results indicate that appointments of CEOs who are recruited with shareholder activist influence are associated with more favorable stock market reactions and stronger profitability improvements than appointments without activist involvement. In contrast, I find little evidence that shareh...
