-
作者：Billings, Bruce K.; Keskek, Sami; Pierce, Spencer
作者单位：State University System of Florida; Florida State University
摘要：We extend prior research examining the relation between aggregate recommendation changes and future returns by documenting that this relation varies over time as a function of the predictability of future earnings growth. When industry-level earnings growth is more predictable, we find that recommendation changes relate negatively to future returns. Our evidence suggests that this negative relation results from analysts revising recommendations upward for higher expected earnings growth but fa...
-
作者：Badia, Marc; Duro, Miguel; Jorgensen, Bjorn N.; Ormazabal, Gaizka
作者单位：University of Navarra; IESE Business School; Copenhagen Business School; Hanken School of Economics; University of Navarra; IESE Business School; Centre for Economic Policy Research - UK; European Corporate Governance Institute
摘要：We study the effects of mandatory disclosure on competitive interactions in the setting of oil and gas (O&G) reserve disclosures by North American public firms. We document that reserve disclosures inform competitors: when one firm announces larger increases in O&G reserves, competitors experience lower announcement returns and higher real investments. To sharpen identification, we analyze several sources of cross-sectional variation in these patterns, the degree of competition, and the sign a...
-
作者：Bentley, Jeremiah W.; Bloomfield, Robert J.; Davidai, Shai; Ferguson, Melissa J.
作者单位：University of Massachusetts System; University of Massachusetts Amherst; Cornell University; Columbia University; Yale University
摘要：Advisors frequently have an interest in the decisions their advisees make, forcing advisees to distinguish their advisors' unbiased beliefs from their self-interested bias. This task is likely to be especially hard when psychological forces distort advisors' beliefs to make some of their bias sincerely held. In our first experiment, we show that advisors bias both their recommendations and their own actions toward their persuasion goal, and that advisees are better at distinguishing between th...
-
作者：Bilinski, Pawel; Bradshaw, Mark T.
作者单位：City St Georges, University of London; Boston College
摘要：In contrast to the disappearing dividends view prevalent in the literature, we document extensive dividend payments by firms and significant variability within firms and across 16 countries during 2000-2013. We predict that within-firm variability in dividends increases investor demand for forward-looking dividend information, and analysts respond by producing informative dividend forecasts. We find that analyst dividend forecasts are available for most dividend-paying firms and are more preva...
-
作者：Hansen, James C.; Lisic, Ling Lei; Seidel, Timothy A.; Wilkins, Michael S.
作者单位：Utah System of Higher Education; Weber State University; Virginia Polytechnic Institute & State University; Brigham Young University; University of Kansas
摘要：Our study is motivated by the theory of credence goods in the auditing setting. We propose that audit committee accounting expertise should reduce information asymmetries between the auditor and the client, thereby limiting auditors' ability to over-audit and under-audit. Consistent with this notion, our results indicate that when audit committees have accounting expertise, clients (1) pay lower fees when changes in standards decrease required audit effort; (2) pay a smaller fee premium in the...
-
作者：Hong, Hyun A.; Ryou, Ji Woo; Srivastava, Anup
作者单位：University of California System; University of California Riverside; West Virginia University; University of Calgary
摘要：Firms provide convexity in managers' compensation plans (vega) to induce risk-averse managers to pursue risky, positive net present value projects. The resulting alignment of managers' and shareholders' incentives creates conflicts with lenders, who face an increased risk of default when managers pursue risky investments. We hypothesize that lenders would respond by stepping up their monitoring and threatening foreclosure to inhibit managers from acting on their vega incentives. Strong lender ...
-
作者：Cadman, Brian; Carter, Mary Ellen; Peng, Xiaoxia
作者单位：Utah System of Higher Education; University of Utah; Boston College
摘要：We examine whether firms benchmark annual equity grants to compensation peers and whether meeting the participation constraint is a motive. Studying CEO equity grants over the period of 2006-2016 and compensation peers disclosed by the firm, we find that equity grants by these peers significantly determine a firm's equity grants. We find no evidence that the relation between a firm's and its peers' CEO equity grants is an indirect outcome of meeting peer total compensation levels. In contrast,...
-
作者：Chang, Woo-Jin; Monahan, Steven J.; Ouazad, Amine; Vasvari, Florin P.
作者单位：Hautes Etudes Commerciales (HEC) Paris; Utah System of Higher Education; University of Utah; Universite de Montreal; HEC Montreal; University of London; London Business School
摘要：We evaluate whether reported accounting numbers are informative about earnings uncertainty and whether earnings uncertainty is priced. We use quantile regressions to forecast the standard deviation, skewness, and kurtosis of future earnings. These three moments are important measures of earnings uncertainty because they reflect the size of the average deviation from expected earnings and the amount of extreme upside potential, extreme downside risk, or both. We develop a novel approach for eva...
-
作者：Bagnoli, Mark; Watts, Susan G.
作者单位：Purdue University System; Purdue University
摘要：Public information that becomes available after a manager's initial voluntary disclosure decision creates incentives for her to reconsider and possibly change that decision. We show that if she has private information that is value-relevant or that impacts the firm's ability to compete in its product market, the option to revise an initial disclosure decision in the face of a public release of information alters both the initial decision and the overall frequency of disclosure. These effects a...
-
作者：Ma, Tao; Wan, Chi; Wang, Yakun; Zhao, Yuping
作者单位：Texas Tech University System; Texas Tech University; University of Massachusetts System; University of Massachusetts Boston; The Chinese University of Hong Kong, Shenzhen; University of Houston System; University of Houston
摘要：We examine the relationship between audit quality and office-level auditor turnover. Using resumes of over 106,000 Big 4 auditors, we find that audit offices with higher turnover have a greater likelihood of client annual report restatements. This detrimental effect is more pronounced when the departing auditors are more experienced and when the office faces tighter human capital constraints and is primarily attributable to voluntary turnover. Further, such negative effect is borne mostly by c...
