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作者：Cheng, Zhuo (June); Fang, Jing (Bob); Myers, Linda A.
作者单位：Hong Kong Polytechnic University; Hong Kong Metropolitan University; University of Central Arkansas; University of Tennessee System; University of Tennessee Knoxville
摘要：The larger association between earnings and contemporaneous returns for negative returns than for positive returns is often attributed to conditional conservatism. We reason that this asymmetry may also be driven by the lack of timeliness with which stock price incorporates bad news relative to good news. Consistent with our reasoning, we show that when stock price incorporates bad news with delay, the asymmetry can exist in the absence of conditional conservatism. This suggests the testable h...
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作者：Demerjian, Peter R.; Owens, Edward L.; Sokolowski, Matias
作者单位：University System of Georgia; Georgia State University; Utah System of Higher Education; University of Utah; University of New Mexico
摘要：We provide evidence that lenders with lower regulatory capital issue loans with lower financial covenant strictness, consistent with such lenders viewing borrower covenant violations as costlier. This is because a borrower covenant violation may lead the lender to downgrade the loan, which triggers accounting that further reduces regulatory capital. Because of regulatory scrutiny, this is true even if the lender waives the violation. We find that this association is concentrated in performance...
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作者：Geng, Heng (Griffin); Zhang, Cheng; Zhou, Frank S.
作者单位：Victoria University Wellington; University of Denver; University of Pennsylvania
摘要：We present theory and empirical evidence that greater financial reporting quality can incentivize myopic investments. In the model, greater financial reporting quality increases investor response to earnings, elevating the manager's incentive to invest myopically to improve earnings. Using the setting of Big N auditors' acquisitions of nonBig Ns, which increased investor response to earnings for the acquired client firms, we find evidence supporting myopic investments. Specifically, acquired c...
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作者：Kyung, Hangsoo; Nam, Jonathan Sangwook
作者单位：Hong Kong Polytechnic University
摘要：This study examines the informational value of local news outlets and how they affect insider trading. We hypothesize that local news coverage is a critical channel through which outsiders acquire local information, which restricts insiders' ability to profit from their information advantage. We argue that a loss of local news coverage increases information opacity faced by outsiders, while making it easier for insiders to seize profitable trading opportunities. Exploring the staggered shutdow...
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作者：De Franco, Gus; Hou, Yu; Ma, Mark (Shuai)
作者单位：Tulane University; Queens University - Canada; Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh
摘要：Following management theory on organizational legitimacy, we predict that managers mimic the accounting of industry-leading companies to gain legitimacy. Such demand for legitimacy is expected to be greater for new managers because stakeholders are more uncertain about the managers' ability. Using a sample of CEO turnovers, we find that a firm increases financial statement comparability with industry leaders after the new CEO assumes office. This relation is stronger when (1) new managers lack...
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作者：Carniol, Michael P.; Fischer, Paul E.
作者单位：Rutgers University System; Rutgers University Newark; Rutgers University New Brunswick; University of Pennsylvania
摘要：Private organizations that produce public goods often receive offers for funding from large donors who seek to influence the nature of the public goods produced. We consider a model in which the potential for large donor influence creates a commitment problem for the organization in the sense that, from an ex ante perspective, the organization sets the price for influence too low given the opportunity cost. Our analysis identifies determinants of the likelihood of large donor influence and ass...
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作者：Kuang, Xi (Jason); Majerczyk, Michael; Yang, Di
作者单位：University System of Georgia; Georgia Institute of Technology; University System of Georgia; Georgia State University; University of New South Wales Sydney
摘要：We experimentally investigate how subordinates' budget reporting in hierarchical organizations is influenced by social distance between subordinates and their direct manager. Although prior research promotes reducing this social distance to improve cooperation and efficiency, we contend that reduced social distance can differentially influence budget reporting, conditional on the manager's stake in the residual claim. As predicted, we find through two studies that the effect of reduced social ...
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作者：Dodgson, Mary Kate; Agoglia, Christopher P.; Bennett, G. Bradley
作者单位：Lehigh University; University of Massachusetts System; University of Massachusetts Amherst
摘要：During the interactive process of issue resolution, client managers may develop expectations about the auditor's position. We examine the effect that negative expectancy violations have on managers' pre-negotiation positions and how relational familiarity can moderate this effect. Through a series of experiments, we find that, when the partner's proposed adjustment is within the client's original expectations, managers offer greater concessions to a more familiar partner than to a less familia...
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作者：Hoitash, Rani; Hoitash, Udi; Kurt, Ahmet C.; Verdi, Rodrigo S.
作者单位：Bentley University; Northeastern University; Massachusetts Institute of Technology (MIT)
摘要：We propose a pairwise measure of financial statement benchmarking (FSB) that captures the degree of overlap in the financial statement line items reported by two firms. We validate FSB by showing its association with actual peer choices of analysts and corporate boards. We then test the practical implications of FSB in the context of strategic peer selection by these parties. We find that analyst (board) chosen peers with low pairwise FSB are more likely to be strategic selections and that the...
