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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：Gillette, Jacquelyn R.
作者单位：Massachusetts Institute of Technology (MIT)
摘要：This study examines how information spillovers from equity to debt markets (equity spillovers) affect sell-side debt analysts' activities and the informativeness of their reports. To explore this relation, I compare debt analyst reports for firms without equity spillovers (private firms) to firms with equity spillovers (public firms). I find that, absent equity spillovers, analysts rely more on mandatory SEC filings to fill the information gap for private firms. This additional effort, however...
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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...
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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...
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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 ...
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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 ...
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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...
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作者：Guenther, David A.; Peterson, Kyle; Searcy, Jake; Williams, Brian M.
作者单位：University of Oregon; University of Oregon; Indiana University System; Indiana University Bloomington; IU Kelley School of Business
摘要：We investigate (1) how well a machine learning algorithm can predict one-year ahead effective tax rates (ETRs) and (2) which items in the financial statements and notes are most useful for these predictions. We compare our machine-generated ETR predictions with those from ETRs implied by analysts' earnings forecasts and find the algorithm's predictions are less biased, more precise, and explain more of the variance in future ETRs. We then use Explainable AI (based on Shapley values) to measure...
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作者：Chen, Novia X.; Chi, Sabrina; Shevlin, Terry
作者单位：University of Houston System; University of Houston; California State University System; California State University Fullerton; University of California System; University of California Irvine
摘要：Disclosure theory predicts that the likelihood of voluntary disclosures increases with the noise level in mandatory disclosures. We test this prediction by exploiting a unique setting where firms simultaneously provide two forecasts of the same metric-annual effective tax rates (ETRs). We find that managers are more likely to issue voluntary ETR forecasts when mandatory ETR forecasts contain more noise due to tax complexity, suggesting that managers resort to voluntary disclosure when mandator...
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作者：He, Yue; Kim, Jeong-Bon; Li, Bing; Liu, Zhenbin
作者单位：Shanghai University of Finance & Economics; City University of Hong Kong; Hong Kong Baptist University
摘要：We exploit the technological closeness among clients of the same auditor to examine whether auditors accumulate knowledge from their clients' technological proximity. We find that a client firm's technological proximity to other clients of its audit office improves audit quality and results in an audit fee discount, even after controlling for the product similarity effect, auditors' overall technological expertise, and industry specialization. Both an increase in audit quality and a decrease i...
