-
作者：Rees, Lynn; Twedt, Brady J.
作者单位：Utah System of Higher Education; Utah State University; University of Oregon
摘要：This study examines whether firms' political activism induces bias in the media coverage of earnings announcements and how such coverage impacts markets. We infer firm political ideology based on employee political contributions and identify firm and manager characteristics associated with distinct ideologies. We find that media outlets negatively slant their coverage of earnings announcements when the political leanings of the outlet are incongruent with the political ideology of the firm. Co...
-
作者：Douthit, Jeremy D.; Martin, Patrick R.; McAllister, Michelle
作者单位：University of Arizona; Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh; Northern Arizona University
摘要：We examine the effect of a charitable contribution matching (CCM) program on employee effort. In CCM programs, employers commit to match employees' donations to charity. We expect CCM to activate a norm of other-regarding behavior, inducing employees to increase effort to benefit their employer. Experimental results robustly support our expectation. We find that CCM increases effort under both fixed-wage and performance-based incentive contracts. Further, our results suggest that CCM is more e...
-
作者：Basu, Sudipta; Ma, Xinjie; Briscoe-Tran, Hoa
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University; National University of Singapore; University System of Ohio; Ohio State University
摘要：We show that firms' investment opportunity sets (IOS) are multidimensional. Analyzing Form 10-K texts, we identify 445 unique keywords that predict firms' future investments during 1995-2009 and combine them into 43 underlying factors. Industry-specific factors include Bio-Pharma, Banking, Information Technology, Oil and Gas, and Retail Stores, while more general factors include Equity Intensity, Debt Intensity, Lease, Going Concern, and Acquisition. These factors form our multidimensional mea...
-
作者：Lennox, Clive S.; Wu, Xi
作者单位：University of Southern California
摘要：This study examines whether audit adjustments are a mechanism that links the effect of mandatory internal control audits (MICAs) on financial reporting quality. We argue that the requirement for auditors to publicly disclose internal control weaknesses exacerbated auditor-client conflicts and that this resulted in auditors being less likely to detect (and correct) misstatements in their clients' pre-audit financial statements. Consistent with this argument, we find significant reductions in au...
-
作者：Arya, Anil; Mittendorf, Brian; 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：When a firm's input supplier can acquire and misreport private information to gain an edge in negotiations, we show that the firm can blunt the supplier's informational advantage by permitting inefficiencies in its own internal production. Specifically, we establish that a modest increase in the cost of the input(s) a firm makes internally credibly commits it to be more aggressive in negotiations with a supplier for the input(s) the firm buys. Recognizing that its potential information rents w...
-
作者：Gale, Brian
作者单位：University of Washington; University of Washington Seattle
摘要：Review correspondence between the SEC and firms is a potentially valuable resource for investors, revealing important information about firms' financial reporting quality. Research suggests that reducing access costs (i.e., the amount of effort required to access review correspondence) could increase investors' processing of this important information. Drawing on psychology theory, I predict and find that access costs interact with another key characteristic within the SEC's control-review amb...
-
作者：Abdalla, Ahmed M.; Carabias, Jose M.
作者单位：Monash University; University of London; London School Economics & Political Science
摘要：We propose and find that aggregate special items conveys more information about future real GDP growth than aggregate earnings before special items because the former contains advance news about future economic outcomes. A two-stage rational expectations test reveals that professional forecasters fully understand the information content of aggregate earnings before special items, but underestimate that of aggregate special items when revising their GDP forecasts. Using vector autoregressions, ...
-
作者：Hendricks, Bradley E.; Landsman, Wayne R.; Pena-Romera, F. Dimas
作者单位：University of North Carolina; University of North Carolina Chapel Hill; Arizona State University; Arizona State University-Tempe
摘要：This study examines whether audit firms hire former PCAOB employees in response to negative PCAOB inspection reports, and whether such hiring leads to reductions in future inspection deficiencies and an increase in audit quality. We find that the number of PCAOB employees hired by large audit firms is positively related to the number of deficiencies reported in their prior inspection reports, and that the number of deficiencies reported in firms' future inspection reports is negatively associa...
-
作者：Casas-Arce, Pablo; Martinez-Jerez, F. Asis
作者单位：Arizona State University; Arizona State University-Tempe; Cornell University
摘要：This paper investigates whether leadership style moderates the effect of leader incentives on the performance of teams. In collaboration with a Latin-American bank, we engineered a field experiment by designing a series of contests among the bank branches with varying prize structures. We find evidence that providing explicit incentives to team leaders has a positive effect on team performance. However, the effect of incentives differs based on the manager's leadership style and team character...
-
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...
