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作者：Guo, Re-Jin; Zhong, Rong (Irene)
作者单位：University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital
摘要：Analysts are recognized for their expertise in predicting industry growth, yet little is known about whether CEOs learn from analysts' insights to guide investment decisions. Focusing on conglomerates where CEOs are underinformed about segment growth opportunities, we find that CEOs learn industry insights from analysts to adjust internal capital allocation. The extent of learning increases when analysts have closer proximity to CEOs or expertise in segments where CEOs face larger internal kno...
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作者：Jacob, Martin; Todtenhaupt, Maximilian
作者单位：WHU - Otto Beisheim School of Management; Norwegian School of Economics (NHH)
摘要：We examine the effect of compliance frictions in reclaiming foreign withholding tax overpayments on foreign portfolio investment (FPI) using data on bilateral FPI around the globe and U.S. institutional investors' foreign holdings. Exploiting variation in withholding tax overpayments for 36 investor countries and 110 issuer countries, we find that withholding tax overpayments adversely affect FPI because of the high compliance costs to international investors in claiming foreign tax credits. C...
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作者：Feng, Zhuoan; Francis, Jere R.; Shan, Yaowen; Taylor, Stephen L.
作者单位：University of Waikato; Maastricht University; University of Technology Sydney
摘要：Prior research finds that clients of high-quality auditors report higher-quality GAAP earnings. We extend this research to investigate whether auditor quality is associated with the quality of voluntarily disclosed non-GAAP earnings measures. Using a sample of Australian firms disclosing annual non-GAAP metrics, we find that clients of high-quality auditors are more likely to voluntarily disclose non-GAAP earnings numbers. However, clients of high -quality auditors make adjustments in calculat...
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作者：Kielty, Patrick D.; Wang, K. Philip; Weng, Diana L.
作者单位：University System of Ohio; Ohio State University; State University System of Florida; University of Florida; City University of New York (CUNY) System; Baruch College (CUNY)
摘要：Complex disclosures have long been a major source of borrowers' poor understanding of mortgages. We examine the effect of simplifying mortgage disclosures in a difference-in-differences design around a significant disclosure rule mandated by the Consumer Financial Protection Bureau in 2015. We find that inexperienced borrowers (first-time home buyers) pay significantly lower interest rates after the disclosure regulation than experienced borrowers (repeat buyers), suggesting that simplifying t...
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作者：Capkun, Vedran; Lou, Yun; Otto, Clemens A.; Wang, Yin
作者单位：Hautes Etudes Commerciales (HEC) Paris; Singapore Management University
摘要：Using data on the registration of clinical trials and the disclosure of trial results, we examine how firms respond to peer disclosures. We find that firms are less likely to disclose their own trial results if the results of a larger number of closely related trials are disclosed by their peers. This relation is stronger if the firms face higher competition (as measured by the number of competing trials). It is weaker if the firms are further along in their research than the peers (as measure...
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作者：Huang, Allen H.; Kraft, Pepa; Wang, Shiheng
作者单位：Hong Kong University of Science & Technology; Hautes Etudes Commerciales (HEC) Paris
摘要：This study examines whether and when credit ratings are useful for accounting fraud prediction. We find that negative rating actions by Standard & Poor's (S&P), an issuer-paid credit rating agency (CRA), have predictive ability for fraud incremental to fraud prediction models (e.g., F-score) and other market participants. In contrast, rating actions by Egan-Jones Rating Company (EJR), an investor-paid CRA relying on public information, have less predictive ability, which is subsumed by S&P and...
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作者：Jiang, Xu; Tang, Chao; Zhang, Gaoqing
作者单位：Duke University; Hong Kong University of Science & Technology; University of Minnesota System; University of Minnesota Twin Cities
摘要：We study the economic impacts of adopting harmonized accounting standards when firms' investments exhibit beauty contest features. We model harmonized accounting standards as common/correlated noises in firms' accounting reports. We show that while more harmonized accounting standards have ambiguous effects on the reports' informativeness in representing firms' underlying fundamentals, they always reduce their usefulness in forecasting aggregate investments. Therefore, the stronger the beauty ...
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作者：Millo, Yuval; Spence, Crawford; Valentine, James
作者单位：University of Warwick; University of London; King's College London; Marquette University
摘要：Literature on equity analysts presents a conundrum: analysts are seen as influential market participants, yet researchers widely criticize them for their bias and inaccuracy. Studies drawing from economic frames struggle to explain this. Therefore, we develop a new conceptualization that positions analysts as actors operating in a social field. Drawing on a qualitative study involving 70 interviews with analysts and portfolio managers, we offer two broad insights. First, we identify long-term ...
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作者：Muller, Maximilian A.; Peter, Caspar David; Urzua, I. Francisco
作者单位：University of Cologne; Erasmus University Rotterdam; Erasmus University Rotterdam - Excl Erasmus MC; City St Georges, University of London
摘要：We study whether firms avoid financial disclosures to preserve their owners' financial privacy. We find that firms named after their owner, for whom firm disclosure would more directly expose owner information, are more opaque. Eponymous owners prefer firm opacity when disclosure exposes sensitive owner information with social stigma, in rural and anticapitalist areas, and in insider-oriented settings with high secrecy and distrust. When firms are forced to disclose, eponymous owners more freq...
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作者：Chen, Yi-Chun; Hung, Mingyi; Wang, Lynn Linghuan
作者单位：City University of Hong Kong; Hong Kong University of Science & Technology; University of Hong Kong
摘要：We study whether and how banks' social performance affects depositors, who hold demandable debt with pervasive government protection. Exploiting the regulatory releases of bank performance ratings for community development and a difference-in-differences design, we find a decline in deposit growth after the release of negative bank social performance. In addition, deposits that are impacted by the negative events flow to nearby banks with high social performance. Further analyses find that the...
