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作者：Carrizosa, Richard D.; Cazier, Richard A.
作者单位：University of North Carolina; University of North Carolina Charlotte; University of North Texas System; University of North Texas Denton
摘要：Prior research documents a negative stock price reaction to initial securities lawsuit filings, on average. Prior research provides no evidence, however, regarding whether and how the market prices information subsequently generated by the litigation process. We examine the market response to a large sample of initial plaintiff complaints and subsequent docket events. Our results are consistent with the market pricing information about issues both systemic to the firm and specific to the pendi...
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作者：Chan, Derek K. W.; Liu, Nanqin
作者单位：University of Hong Kong; Southern University of Science & Technology
摘要：This paper presents an economic framework to study strategic interactions along the analyst-auditor -owner disciplinary chain, in which the auditor examines the financial reports prepared by the owner, and the analyst uncovers financial misreporting, as well as audit failure. We find that although analyst scrutiny ex post detects misreporting, it ex ante aggravates the owner's misreporting behavior and further impairs financial statement reliability if the legal penalties for the auditor and t...
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作者：Kaplan, Zachary; Perez-Cavazos, Gerardo
作者单位：Washington University (WUSTL); University of California System; University of California San Diego
摘要：We provide evidence that dividends signal sustainable earnings generated by assets-in-place for firms with weak investment opportunities. In the cross-section, both dividend levels and changes contain more earnings information among firms with weaker investment opportunities. Intertemporally, when aggregate investment opportunities in the economy are worse, dividend changes convey more earnings information. In contrast, dividends have a more negative association with investment spending for fi...
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作者：Proell, Chad A.; Zhou, Yuepin (Daniel); Nelson, Mark W.
作者单位：Texas Christian University; University of Illinois System; University of Illinois Urbana-Champaign; Cornell University
摘要：Auditors work in hierarchical teams in which effective upward communication is critical to audit quality. In these teams, subordinates choose both the content, as well as the style, of their communications. We report survey and experimental evidence of the importance of communication style in the context of audit team culture. Our first two studies provide evidence that audit staff perceive assertive upward communication as risky and prefer to communicate passively, especially in less autonomo...
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作者：Dechow, Patricia M.; Larson, Chad R.; Resutek, Robert J.
作者单位：University of Southern California; University of Houston System; University of Houston; University System of Georgia; University of Georgia
摘要：We investigate the impact of the mixed attribute GAAP measurement model on accrual quality inferences. GAAP rules vary from an income statement matchingfocus to a balance sheet fair-valuefocus. Accrual properties are also affected by the business activity being measured and the activity's recurrence. Furthermore, accrual measurement is affected by managerial estimation error/manipulation. As a consequence, accruals are heterogeneous with predictably different statistical properties. We constru...
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作者：Donelson, Dain C.; Flam, Rachel W.; Yust, Christopher G.
作者单位：University of Iowa; University of London; London Business School; Texas A&M University System; Texas A&M University College Station; Mays Business School
摘要：Securities litigation is relatively rare, but can significantly affect sued firms. We extend this research by examining the spillover effect of securities litigation on industry peers using a sample of disclosure-related litigation- distinct from events such as restatements and SEC enforcement. We find investors respond immediately as peers exhibit negative abnormal returns before and after case filings. Additionally, peers provide more voluntary earnings and sales forecasts. Notably, investor...
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作者：Arya, Anil; Ramanan, Ram N., V
作者单位：University System of Ohio; Ohio State University; State University of New York (SUNY) System; Binghamton University, SUNY
摘要：A firm???s stock price may reveal information to a variety of participants, including its strategic partners and competitive rivals. This paper establishes that when a firm discloses cost information it can confound decision relevant demand information embedded in the stock price that observers can otherwise extract. With stock price valuing firm profit (not cost and revenue separately), a disconnect is introduced between the firm???s actions and its intent???it discloses more (less) on one di...
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作者：Campbell, John L.; Gee, Kurt H.; Wiebe, Zac
作者单位：University System of Georgia; University of Georgia; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; University of Arkansas System; University of Arkansas Fayetteville
摘要：Most research on non-GAAP financial measures focuses on earnings or earnings per share, although non-GAAP revenue disclosure has recently attracted SEC scrutiny. It is unclear ex ante what non-GAAP adjustments could improve revenue's usefulness because, unlike earnings, revenue is a top-line number related primarily to core (i.e., persistent) business activities. We present the first archival analysis of non-GAAP revenues using a large, hand-collected sample of disclosures from 2015 to 2018. A...
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作者：Hatfield, Richard C.; Mullis, Curtis E.; Trotman, Ken T.
作者单位：University of Alabama System; University of Alabama Tuscaloosa; University System of Georgia; Georgia State University; University System of Georgia; Georgia State University; University of New South Wales Sydney
摘要：In this study, we consider how the accumulating nature and income direction of audit differences influence negotiated audit adjustments. We test our expectations by constructing dyads consisting of experienced auditors and financial officers, allowing them to interact via a web-based instrument. As predicted, based on expectancy violation theory and consideration of negotiation leverage, these audit difference characteristics alter the behaviors and negotiated outcomes of our participants. Spe...
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作者：Bogdani, Evisa; Causholli, Monika; Knechel, W. Robert
作者单位：University of Kentucky; State University System of Florida; University of Florida; University of Auckland; University of New South Wales Sydney
摘要：The SEC requires equity crowdfunding (ECF) companies to provide assured financial statements. Assurance can be provided with certification by management or an audit or review by an independent accountant. We utilize the ECF setting to examine whether voluntary assurance facilitates capital formation. We find that companies that provide either reviewed or audited financial statements during a capital campaign are marginally more likely to raise their target capital. They also raise more funds a...
