-
作者：Arnold, Markus C.; Artz, Martin; Tafkov, Ivo D.
作者单位：University of Bern; University of Munster; University System of Georgia; Georgia State University
摘要：We investigate how performance-to-target (exceeding versus missing prior target) and task type (ability-driven versus effort-driven) affect managers' target-setting decisions in a setting where a manager sets targets for multiple employees. To do so, we use an experiment that involves executives, who average more than 16 years of work experience. We predict and find stronger target adjustments when prior targets are exceeded than when they are missed, especially when tasks are ability-driven. ...
-
作者：Chen, Wen; Jung, Sumi; Peng, Xiaoxia; Zhang, Ivy Xiying
作者单位：City University of Hong Kong; Yonsei University; Utah System of Higher Education; University of Utah; University of California System; University of California Riverside
摘要：Exploiting the setting of staggered adoption of the Inevitable Disclosure Doctrine (IDD) in U.S. state courts, we examine how quasi-exogenous restrictions of outside employment opportunities affect CEO compensation structure. The IDD adoption constrains executives' ability to work for competitors, which likely decreases CEOs' tendency to take risks by increasing the cost of job loss and reducing the reward to risk taking. We expect the board to respond by increasing the sensitivity of CEO weal...
-
作者：Dordzhieva, Aysa
作者单位：University of Texas System; University of Texas Austin
摘要：This study addresses the international debate over whether the rotation of audit firms should be mandatory. Mandatory rotation rules have been adopted by the European Union, but these rules have not been established in the United States. Proponents of the policy believe that a long-tenure auditor-client relationship leads to the auditor building an excessive economic bond with the client, which may then erode auditor independence. Motivated by this claim, I build a theoretical model that compa...
-
作者：Hu, Danqi; Stephan, Andrew
作者单位：Peking University; University of Colorado System; University of Colorado Boulder
摘要：We provide initial evidence that stock exchange procedures around closing auctions advantage speed traders at the expense of auction participants. We show that, on Nasdaq and NYSE Arca, 4:00 pm earnings releases result in informed trading in the continuous regular-hour session in the short window between 4:00 pm and the closing auction; this trading subsequently moves closing prices in the direction of the earnings news. The ability of speed traders to submit 4:00-pm-news orders to the auction...
-
作者：She, Guoman
作者单位：University of Hong Kong
摘要：This paper studies whether and how mandatory nonfinancial disclosure affects firms' real decisions. I exploit a disclosure regulation enacted in California, which mandates that firms disclose how they conduct due diligence to address their suppliers' human rights abuses. I find that treated firms increase their supply chain due diligence, and their suppliers' human rights performance improves following the regulation. The effects are stronger when firms face greater pressure from non-governmen...
-
作者：Cowle, Elizabeth N.; Rowe, Stephen P.
作者单位：Colorado State University System; Colorado State University Fort Collins; University of Arkansas System; University of Arkansas Fayetteville
摘要：We examine the reputational impact of an audit office issuing adverse internal control opinions (adverse ICOs). While prior research has examined how clients that receive an adverse ICO respond, we focus on clients that did not receive an adverse ICO. We find that audit offices that issue more adverse ICOs experience lower growth and that this effect is stronger when the adverse ICO is associated with a more visible client or refers to an entity-level control weakness. Finally, we find that cl...
-
作者：Marshall, Nathan T.; Skinner, A. Nicole
作者单位：University of Colorado System; University of Colorado Boulder; University System of Georgia; University of Georgia; University System of Georgia; University of Georgia
摘要：While accounting research has extensively examined initial guidance disclosures, the disclosures that managers make when initial forecasts become materially inaccurate have received much less attention. These updates are unique because managers are communicating that their initial forecasts are no longer correct. In this context, we examine how earnings forecast withdrawals affect managers' reporting reputation, relative to earnings revisions and nondisclosure. While managers face immediate ne...
-
作者：Bao, Dichu; Kim, Yongtae; Su, Lixin (Nancy)
作者单位：Lingnan University; Santa Clara University; Korea Advanced Institute of Science & Technology (KAIST); Hong Kong Polytechnic University
摘要：The Securities and Exchange Commission (SEC) allows firms to redact information from material contracts by submitting confidential treatment requests if redacted information is not material and would cause competitive harm upon public disclosure. This study examines whether managers use confidential treatment requests to conceal bad news. We show that confidential treatment requests are positively associated with residual short interest, a proxy for managers' private negative information. This...
-
作者：Christensen, Hans B.; Maffett, Mark G.; Ranter, Thomas
作者单位：University of Chicago
摘要：We show that a mid-2000s increase in extraterritorial enforcement of the U.S. Foreign Corrupt Practices Act (FCPA), characterized by greater international regulatory cooperation and more frequent use of the FCPA's accounting provisions, has a significant deterrent effect on foreign direct investment in high-corruption-risk countries. The decrease in investment is at least as large for non-U.S. as for U.S. firms, suggesting that widespread extraterritorial enforcement helps to create a level fo...
-
作者：Nezlobin, Alexander A.; Sloan, Richard G.; Giedt, Jenny Zha
作者单位：University of London; London School Economics & Political Science; University of Southern California; George Washington University
摘要：A large body of empirical research in accounting investigates the causes and consequences of accruals quality, reaching numerous influential conclusions. Yet little work has been done to systematically evaluate the validity of the underlying measures of accruals quality. We evaluate these measures using three criteria: (1) Is the measure unaffected by the underlying economic determinants of accruals? (2) Does the measure consistently reflect errors in accruals? (3) Does the measure facilitate ...
