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作者：Chychyla, Roman; Falsetta, Diana; Ramnath, Sundaresh
作者单位：University of Miami
摘要：To minimize costs related to unfavorable perceptions of their tax-related activities, firms with low effective tax rates (ETR) could avoid, where possible, explicit mentions of their effective tax rates. Using this reputational cost perspective, we study an item of required disclosure in the income tax footnote of the 10-K, the ETR reconciliation table, where firms can choose a presentation format that reveals the tax rate (the percentage format) or one that avoids explicit mention of the effe...
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作者：Whited, Robert L.; Swanquist, Quinn T.; Shipman, Jonathan E.; Moon, James R., Jr.
作者单位：North Carolina State University; University of Alabama System; University of Alabama Tuscaloosa; University of Arkansas System; University of Arkansas Fayetteville; University System of Georgia; Georgia Institute of Technology
摘要：In the absence of random treatment assignment, the selection of appropriate control variables is essential to designing well-specified empirical tests of causal effects. However, the importance of control variables seems under-appreciated in accounting research relative to other methodological issues. Despite the frequent reliance on control variables, the accounting literature has limited guidance on how to select them. We evaluate the evolution in the use of control variables in accounting r...
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作者：Lu, Yao; Nikolaev, Valeri V.
作者单位：Cornell University; University of Chicago; University of Chicago
摘要：The new accounting standard requires that financial institutions estimate expected credit losses on their loan portfolios. The predictability of long-term losses, however, remains an open question. We develop a model that predicts long-term loan losses and incorporates adjustments for macroeconomic forecasts. The model combines cross-sectional predictions with a high-dimensional dynamic factor model that tracks aggregate losses over the business cycle. The model predicts long-term losses out-o...
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作者：Ben-Rephael, Azi; Da, Zhi; Easton, Peter D.; Israelsen, Ryan D.
作者单位：Rutgers University System; Rutgers University New Brunswick; Rutgers University Newark; University of Notre Dame; Michigan State University; Michigan State University's Broad College of Business
摘要：The SEC requires public companies to disclose material information on Form 8-K within four days of a triggering event. We show that on 8-K event and filing dates, there is significant abnormal attention on Bloomberg terminals, which are a source of information for institutional investors, while traditional media attention tends to be higher on filing days. Significant price discovery occurs on the event date and on the days between that day and the filing date. The traditional media coverage o...
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作者：Huo, Kun; Kelly, Khim; Webb, Alan
作者单位：Western University (University of Western Ontario); State University System of Florida; University of Central Florida; University of Waterloo
摘要：Firms often use causal models to align decision-making with strategic objectives. However, firms often operate in changing environments such that an accurate causal model can become inaccurate. Prior research has not examined the consequences that a change in the accuracy of causal models may have for managerial learning. Using an experiment, we predict and find that providing an accurate causal model positively affects managerial learning, and this positive effect is not reduced by encouragin...
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作者：Blum, Emily S.; Hatfield, Richard C.; Houston, Richard W.
作者单位：Texas A&M University System; Texas A&M University College Station; University of Alabama System; University of Alabama Tuscaloosa
摘要：Auditors often face situations in which acting on their professional obligations comes with potential personal costs. Drawing upon the Theory of Reputation in Organizations, we predict that perceived costs associated with these actions are lower for auditors with positive reputations, which, in turn, influences their actions. In our first experiment, participants perceive that auditors with negative reputations face a more constrained choice set when anticipating a budget overage. Further, par...
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作者：Davidson, Robert H.; Pirinsky, Christo
作者单位：Virginia Polytechnic Institute & State University; State University System of Florida; University of Central Florida
摘要：We analyze whether exposure to an SEC insider trading enforcement action affects how insiders trade. We find that following an insider trading enforcement action at one firm, exposed insiders earn significantly lower abnormal profits from their trades at other firms compared to non-exposed insiders. The deterrent effect is stronger when a fellow insider is convicted, and is similarly significant both pre- and post-SOX. Following the enforcement event, exposed insiders do not trade less frequen...
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作者：Gong, Jing; Krishnan, Jayanthi; Liang, Yi
作者单位：Lehigh University; Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University
摘要：We examine financing outcomes for small businesses seeking to sell public securities in a setting characterized by high information asymmetry, weak requirements for auditor participation, and a complete absence of Big N auditors. Issuers that raise capital from small, unsophisticated investors through crowdfunding, under the Securities and Exchange Commission's Regulation Crowdfunding (RegCF), often need no auditor attestation or need only weak attestation in the form of reviews, not audits, o...
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作者：Lillis, Anne M.; Malina, Mary A.; Mundy, Julia
作者单位：University of Melbourne; University of Colorado System; University of Colorado Denver; University of Greenwich
摘要：We examine how subjectivity in performance measurement and reward systems (PMRS) is used to mitigate incentive contracting risks. Drawing on data from 38 interviews with supervisory and subordinate managers in four firms, we provide a more comprehensive explanation of the role of subjectivity in risk mitigation than is evident in the prior literature. We provide empirical evidence of the importance firms place on the use of subjectivity to mitigate the risk of incentive misalignment and employ...
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作者：Kachelmeier, Steven J.; Rimkus, Dan
作者单位：University of Texas System; University of Texas Austin; State University System of Florida; University of Florida; State University System of Florida; University of Florida
摘要：In two incentivized auditing experiments, participants who choose to acquire evidence adjust for the risk revealed by that evidence to a lesser extent than those who obtain the same evidence without investigative action, controlling for the diagnostic value of evidence. This finding follows from mental accounting and information choice theories that, in combination, predict that choosing to undertake effortful investigation can magnify aversion to costly adjustments. In our first experiment, e...
