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作者：Bianchi, Pietro A.; Marra, Antonio; Masciandaro, Donato; Pecchiari, Nicola
作者单位：State University System of Florida; Florida International University; Bocconi University; Bocconi University; Bocconi University
摘要：We investigate how connections to organized crime manifest on firms??? financial statements and analyze the impact of these connections on firm performance outcomes. Using a unique dataset that identifies Italian firms connected to organized crime, we find that connected firms have lower profitability, even though they report higher sales and lower labor cost. Connected firms also have higher bank debt, report lower cash holdings, experience quicker operating cycles and are more likely to file...
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作者：Chakraborty, Indraneel; Leone, Andrew J.; Minutti-Meza, Miguel; Phillips, Matthew A.
作者单位：University of Miami; Northwestern University; University of Miami
摘要：Recent evidence suggests that investors struggle to process complex financial disclosures. Relative to equity and public debt investors, banks have unique advantages in acquiring information and can impose contractual terms to mitigate information frictions. We investigate whether financial statement complexity is associated with firms??? reliance on bank financing and the terms of bank loans. We focus on two aspects of complexity: the length of financial reports and the complexity of financia...
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作者：He, Xianjie; Kothari, S. P.; Xiao, Tusheng; Zuo, Luo
作者单位：Shanghai University of Finance & Economics; Massachusetts Institute of Technology (MIT); Central University of Finance & Economics; Cornell University
摘要：Using a difference-in-differences approach, we examine the effect of industry-specific knowledge transfer on audit performance after a merger of two Chinese audit firms with different levels of expertise in an industry. For clients in an industry audited by both merging audit firms, those audited by the audit firm less specialized in that industry belong to the treatment group, while all other clients belong to the control group. We find an economically significant improvement in audit quality...
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作者：Schuhmacher, Karl; Towry, Kristy L.; Zureich, Jacob
作者单位：Emory University; Tilburg University
摘要：Leading by example is one of the most powerful methods to encourage individuals to work toward a common objective. Despite the importance of leadership, little is known about how the effectiveness of leading by example depends on institutional features, such as the transparency and design of leaders??? compensation contracts. We conduct two experiments to study this interplay between leadership and contracting in organizations with social missions (i.e., socially driven organizations). We find...
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作者：Zeng, Wei; Lillis, Anne M.; Grafton, Jennifer; Dekker, Henri C.
作者单位：Australian National University; University of Melbourne; Vrije Universiteit Amsterdam; Copenhagen Business School
摘要：Cross-border alliances expose firms to heightened risks, posing different governance and control challenges than domestic alliances. We examine the impact of differences in alliance partner countries??? institutional environments. Analysis of survey data supports our contention that cross-border alliances involve a greater reliance on formal controls, particularly when firms collaborate with partners in countries with a weaker institutional environment. These relations exist regardless of gove...
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作者：Baloria, Vishal P.; Lo, Alvis K.; Shu, Susan
作者单位：University of Connecticut; Boston College
摘要：We examine whether the media can act as a friction that hampers the efficiency of corporate labor investment, a decision that attracts significant media attention. We develop a new measure of media exposure that takes into account the circulation and geographic proximity of a comprehensive set of media outlets. We show media exposure leads to greater labor investment inefficiency. Closer examination reveals that media exposure is associated with firms underhiring, but not underfiring. This und...
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作者：Hinson, Lisa A.; Pundrich, Gabriel P.; Zakota, Mark
作者单位：State University System of Florida; University of Florida; University System of Maryland; University of Maryland College Park
摘要：The disclosure requirements of ASC 606 significantly expanded the volume and granularity of revenue information. However, because of the significant judgment associated with the standard, it is unclear whether the new disclosures increased the decision-usefulness of financial reports. To shed light on this question, we investigate the revenue disaggregation requirements of ASC 606. These requirements had significant disclosure consequences, illustrated by an over two-fold increase in the media...
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作者：Bonner, Sarah E.; Kadous, Kathryn; Majors, Tracie M.
作者单位：University of Southern California; Emory University
摘要：We experimentally examine whether audit seniors??? use of simple cognitive processes for a complex task is affected by the strength of habits that they developed as staff. A habit is a mental association between a behavior and a specific context. We propose that, for seniors with stronger habits to use simple processes, the typical audit room context automatically activates those processes, making it harder to select the processes that are more effective for a complex task. As predicted, we fi...
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作者：Barcellos, Leonardo P.; Kadous, Kathryn
作者单位：Emory University
摘要：Reactions to earnings calls are sensitive to subtle features of managers' speech, but little is known about the effect of nonnative accents in this setting. Nonnative-accented CEOs may avoid holding calls in English for fear of investors' negative stereotypes. However, theory indicates that stereotypes from the CEO position and nonnative accents conflict, and that the process of reconciling conflicting stereotypes requires effortful processing. We use a series of four experiments to test each ...
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作者：Cao, Tongrui; Duh, Rong-Ruey; Tan, Hun-Tong; Xu, Tu
作者单位：Nankai University; Tunghai University; Nanyang Technological University; Renmin University of China
摘要：Audit firms have invested significantly in data analytics (DA). However, evidence shows that auditors are often reluctant to rely on DA. A major auditor concern is that inspectors will second-guess the audit evidence gathered using DA. Drawing on psychology research, we examine how the effect of inspection risk on auditors??? reliance on DA is moderated by a fixed mindset (a belief that one???s ability is fixed) versus a growth mindset (a belief that one???s ability is malleable). In an experi...
