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作者：Bhojraj, Sanjeev; Bloomfield, Robert J.; Jang, Youngki; Yehuda, Nir
作者单位：Cornell University; University of Nebraska System; University of Nebraska Omaha; University of Delaware
摘要：We provide evidence that credit investors do not fully impound the implications of firms' cost structure (or operating leverage) when pricing credit default swaps. Information about firms' cost structure is not disclosed and needs to be estimated. Furthermore, the performance implications of firms' cost structure depend on the expected macroeconomic conditions. We focus on the debt market because of the strong emphasis of this market on downside risk. To measure expected aggregate macroeconomi...
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作者：Beck, Matthew J.; Nicoletti, Allison K.; Stuber, Sarah B.
作者单位：University of Kansas; University of Pennsylvania; Texas A&M University System; Texas A&M University College Station; Mays Business School
摘要：Auditor credibility is important in the banking industry due to the opacity of bank assets and the use of financial statements by external parties to facilitate monitoring. Depositors monitor and discipline bank behavior, but they can also contribute to the spread of shocks from one bank to another. We argue that depositors perceive bank failure as an audit failure, which reduces their assessment of auditor credibility. We document that exposure to failure through the audit firm is associated ...
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作者：El Ghoul, Sadok; Guedhami, Omrane; Kim, Yongtae; Yoon, Hyo Jin
作者单位：University of Alberta; University of South Carolina System; University of South Carolina Columbia; Santa Clara University; Korea Advanced Institute of Science & Technology (KAIST); University of Texas System; University of Texas El Paso
摘要：Using data from 19 countries over the 1990-2015 period, we examine how economic policy uncertainty (EPU) affects accounting quality. We find that accounting quality, measured based on Nikolaev's (2018) model, increases during periods of high policy uncertainty. This relation is confirmed by the negative association between EPU and performance-adjusted discretionary accruals in a multivariate setting, and it extends to various alternative measures of earnings properties. We also find that the p...
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作者：Samuels, Delphine
作者单位：Massachusetts Institute of Technology (MIT)
摘要：The government requires its suppliers to have certain internal information processes to reduce uncertainty about their ability to fulfill their commitments. I argue that these requirements improve suppliers' internal information, which leads to better external reporting. Using a dataset of U.S. government contracts, I find a positive relation between government contract awards and firms' external reporting quality. Consistent with procurement-related requirements driving this relation, I find ...
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作者：Fuller, Stephen H.; Joe, Jennifer R.; Luippold, Benjamin L.
作者单位：Suffolk University; University of Delaware; Babson College
摘要：We investigate the joint effects of auditors' reporting choice and audit committee effectiveness on management disclosures about complex estimates. A new PCAOB standard requires auditors to report on Critical Audit Matters (CAMs): issues communicated or required to be communicated to the audit committeeabout accounts or disclosures that (1) are material to the financial statements,and (2) involved especially challenging, subjective, or complex auditor judgment( PCAOB 2017a, 11). Consistent wit...
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作者：Williams, Braden; Williams, Brian M.
作者单位：University of Texas System; University of Texas Austin; Indiana University System; Indiana University Bloomington; IU Kelley School of Business
摘要：This study examines whether financial accounting standards moderate the effectiveness of tax policy. Specifically, we examine whether myopic managers' focus on short-term financial reporting reduces the effectiveness of tax subsidies that incentivize innovation. We employ a novel setting, the issuance of Financial Interpretation No. 48 (FIN 48), which changed the financial reporting for some important, yet uncertain, tax incentives to innovate. For firms most affected by the standard change, w...
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作者：Zheng, Xin
作者单位：University of British Columbia
摘要：The Dodd-Frank Act allows the SEC to choose either an administrative proceeding or a federal court as an enforcement venue for resolving violations of federal securities laws. I examine determinants and consequences of the SEC's choice of enforcement venue after the Dodd-Frank Act. Results show that material cases are 28-35 percent more likely to be assigned to federal courts, and politically connected defendants are about 14 percent more likely to be routed to administrative proceedings. Whil...
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作者：Balakrishnan, Karthik; Ertan, Aytekin
作者单位：Rice University; University of London; London Business School
摘要：Does enhancing banks' information sets and understanding of credit risks improve loan loss recognition? We study this question using a global dataset of staggered initiations and coverage increases of public credit registries (PCRs). Mandated by national regulators, PCRs collect borrower and loan information from lenders and share it with the banks in the financial system. This setting represents a significant improvement in banks' assessment of loss events. We find that PCR initiations and co...
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作者：Ellahie, Atif; Hayes, Rachel M.; Plumlee, Marlene A.
作者单位：Utah System of Higher Education; University of Utah
摘要：Theoretical work generally predicts a negative association between disclosure and risk premium, where additional disclosure reduces estimation risk or information asymmetry. However, empirical studies frequently report mixed results. Recent theoretical studies suggest that the association between disclosure and risk premium is not necessarily always negative, and could be positive (or less negative). For example, Dutta and Nezlobin (2017) show that disclosure can be associated with higher risk...
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作者：Schloetzer, Jason D.; Tseng, Ayung; Yohn, Teri Lombardi; Yoon, Yeo Sang
作者单位：Georgetown University; Indiana University System; Indiana University Bloomington; IU Kelley School of Business; Emory University; University of Minnesota System; University of Minnesota Twin Cities
摘要：We find that firms are less likely to disclose information regarding a negative economic event for which the firm is likely to be blamed than a negative event for which the firm is likely to be perceived as blameless. We identify 383 material negative events (casualty accidents, oil spills, catastrophes, investor class action lawsuits) and find that firms are approximately four times less likely to disclose information following a negative blamed event than a blameless event. Consistent with d...
