-
作者：Jiang, Xu; Xin, Baohua
作者单位：Duke University; University of Toronto
摘要：We explicitly model financial reporting discretion and earnings management in an investment setting where managers have incentives to behave myopically. We show that when managers are sufficiently, but not excessively, myopic, granting them some discretion over the mandatory financial reports can lead to better investment decisions. This finding contrasts with the conventional argument that financial reporting discretion facilitates earnings management and exacerbates managerial myopia, leadin...
-
作者：Guo, Qiang; Koch, Christopher; Zhu, Aiyong
作者单位：University of Southern Denmark; Johannes Gutenberg University of Mainz; Southwestern University of Finance & Economics - China; Johannes Gutenberg University of Mainz; Southwestern University of Finance & Economics - China
摘要：This study investigates the value of auditor industry specialization. In the first step, we use a discrete choice model to derive the first-order demand for auditor industry specialization. Our results reveal that clients have a general preference for auditor industry specialization, relating to both audit firm and audit office specialization. We observe that specializations at the audit firm and audit office level are substitutes. We also find that larger, more complex clients have a stronger...
-
作者：Petrov, Evgeny; Stocken, Phillip C.
作者单位：Hong Kong University of Science & Technology; Dartmouth College
摘要：We study the determinants of auditor industry specialization, the impact of specialization on fees and audit quality, and a regulator's optimal choice of audit standards in the presence of specialization. In industries with correlated firm values, a specialist auditor enjoys synergies from information spillovers between clients. These spillovers, however, only induce a specialist to decrease audit effort when the cost of effort and the prior precision of the firms' values are low. We derive em...
-
作者：Chan, Eric W.; Evans, John H., III; Hong, Duanping
作者单位：University of Texas System; University of Texas Austin; Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh; Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh; University System of Georgia; Kennesaw State University
摘要：We investigate the consequences for non-promoted executives ( NPEs) in CEO tournaments. We find that NPEs' total incentives decrease following the end of a tournament based on evidence of their reduced future promotion prospects and limited adjustments to their compensation. Consistent with the theory that NPEs leave in response to this loss in incentives, results indicate that turnover is higher for NPEs who: (1) are ex ante more competitive for promotion, (2) compete in open tournaments with...
-
作者：De Simone, Lisa; Olbert, Marcel
作者单位：University of Texas System; University of Texas Austin; University of London; London Business School
摘要：We investigate the effects of mandatory private Country-by-Country Reporting (CbCR) to European tax authorities on multinational firms' capital and labor investments, as well as their organizational structures. We exploit the threshold-based application of this 2016 disclosure rule to conduct difference-in-differences and regression discontinuity tests. We document increases in capital and labor expenditures in Europe, but these effects are more pronounced in countries with preferential tax re...
-
作者：Binz, Oliver
作者单位：INSEAD Business School
摘要：This paper examines how agents' response to macroeconomic uncertainty affects firms' revenues, expenses, and profitability in a global sample of firms spanning 1997 to 2018. Consistent with consumers reducing purchases and managers cutting costs, I find that increases in macroeconomic uncertainty lead to both lower revenues and lower expenses. The net short-term effect on profitability is positive as the reduction in expenses exceeds the fall in revenues. This favorable profitability effect is...
-
作者：Hamm, Sophia J. W.; Jung, Boochun; Lee, Woo-Jong; Yang, Daniel G.
作者单位：Tulane University; University of Hawaii System; University of Hawaii Manoa; Seoul National University (SNU); University System of Ohio; Ohio State University
摘要：We document that managers stockpile excess inventory to mitigate the operational risk posed by labor unions and to maintain bargaining power in labor negotiations. Inventory levels are higher for union firms and are incrementally higher preceding the renegotiation of collective bargaining agreements with unions. Inventory stockpiling at union firms is more salient when capital market pressure for transparency or information spillover from peers constrains managers from using disclosure strateg...
-
作者：Hodder, Leslie D.; Sheneman, Amy G.
作者单位：Pennsylvania State System of Higher Education (PASSHE); Indiana University of Pennsylvania; University System of Ohio; Ohio State University; University System of Ohio; Ohio State University
摘要：Studies find evidence that opportunistic reporting often accompanies fair value measurement. However, research has not determined whether the source of this opportunism is the estimate of fair value. Using detailed information on insurers' investment holdings, we separate the use of fair value measurement discretion from the application of non-measurement-related discretion in accounting for impairments of financial assets. Our evidence contradicts the view that fair value measurement discreti...
-
作者：Chang, Linda J.
作者单位：University of New South Wales Sydney
摘要：This study examines how activity-based costing (ABC) cost driver framing affects suppliers' ability to increase their bargaining power when negotiating with powerful customers. Results of an experiment show that suppliers with the potential to contribute to increasing joint profits (high contribution potential) earn a higher share of joint profits than suppliers with low contribution potential. High contribution potential suppliers have higher bargaining power because of their ability to incre...
-
作者：Kang, Jun-Koo; Kim, Seil; Oh, Seungjoon
作者单位：Nanyang Technological University; City University of New York (CUNY) System; Baruch College (CUNY); Peking University Shenzhen Graduate School (PKU Shenzhen); Peking University
摘要：We examine whether board demographic diversity enhances cognitive diversity (measured as director dissent in the boardroom) and monitoring. At the director level, we find that individual directors who are dissimilar relative to other board members in terms of tenure and experience are more likely to dissent. At the board level, boards composed of directors who have heterogenous tenure, experience, and gender are more likely to dissent. We also find that stock market reactions to director resig...
