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作者：Campbell, John L.; Khan, Urooj; Pierce, Spencer
作者单位：University System of Georgia; University of Georgia; University of Texas System; University of Texas Austin; State University System of Florida; Florida State University
摘要：Prior research finds that unrealized gains/losses on cash flow hedges are negatively associated with future earnings, and that investors and analysts fail to anticipate this association. These studies speculate that this mispricing is due to either poor derivatives disclosures or the accounting model for cash flow hedges. We examine whether enhanced mandatory derivatives disclosures set forth in FAS 161 improve users' understanding of firms' hedging activities and offer three main findings. Fi...
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作者：Dobridge, Christine L.
作者单位：Federal Reserve System - USA
摘要：This paper studies effects of the five-year net operating loss carryback enacted near the ends of the 2001 and 2007-2009 U.S. recessions-a policy that gave firms larger U.S. federal tax refunds as a fiscal stimulus measure. Following the end of the 2001 recession, I find that the policy had little effect on firm financial conditions, and I find that firms allocated $0.40 of every refund dollar to investment in that period. In contrast, the policy improved firm financial conditions following th...
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作者：Barth, Mary E.; Gee, Kurt H.; Israeli, Doron; Kasznik, Ron
作者单位：Stanford University; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; Reichman University; Nazarbayev University
摘要：We investigate whether firms manage stock prices in anticipation of share issuance. Warrant exercise results in share issuance and warrant expiration dates are fixed years in advance, which precludes market timing. We predict firms manage stock prices to prevent (induce) warrant exercise when exercise is dilutive (anti-dilutive) to existing shareholders. To test our prediction, we examine stock returns around warrant expiration dates. We find that the difference between out-of-the-money (OTM) ...
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作者：Ege, Matthew S.; Hepfer, Bradford F.; Robinson, John R.
作者单位：Texas A&M University System; Texas A&M University College Station; Mays Business School
摘要：Social hierarchy theory predicts that the power and status of an organizational function have a first-order effect on the function's ability to influence outcomes. We find that the rank of the title of the top tax executive is positively associated with tax planning after controlling for treatment effects. Our inferences remain when (1) using changes in the size of the c-suite as a shock to the relative power and status of the tax function, and (2) examining promotions and demotions in title r...
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作者：Breuer, Matthias; Hombach, Katharina; Mueller, Maximilian A.
作者单位：Columbia University; Carl von Ossietzky Universitat Oldenburg; University of Cologne
摘要：We predict and find that regulated firms' mandatory disclosures crowd out unregulated firms' voluntary disclosures. Consistent with information spillovers from regulated to unregulated firms, we document that unregulated firms reduce their own disclosures in the presence of regulated firms' disclosures. We further find that unregulated firms reduce their disclosures more the greater the strength of the regulatory information spillovers. Our findings suggest that a substitutive relationship bet...
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作者：Jha, Anand; Kulchania, Manoj; Smith, Jared
作者单位：Wayne State University; North Carolina State University
摘要：Using data on corruption convictions from the U.S. Department of Justice, we find that auditors charge higher fees when a firm is headquartered in a more corrupt district. This result is robust to a wide range of time and location fixed effects, using capital city isolation as an instrument, and propensity score matching. We also find that, relative to those in non-corrupt districts, firms in corrupt districts are more likely to have weak internal controls and restate earnings, and that their ...
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作者：Lyle, Matthew R.; Yohn, Teri Lombardi
作者单位：Northwestern University; Emory University
摘要：We integrate fundamental analysis with mean-variance portfolio optimization to form fully optimized fundamental portfolios. We find that fully optimized fundamental portfolios produce large out-of-sample factor alphas with high Sharpe ratios. They substantially outperform equal-weighted and value-weighted portfolios of stocks in the extreme decile of expected returns, an approach commonly used in fundamental analysis research. They also outperform the factor-based and parametric portfolio poli...
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作者：Acito, Andrew A.; Nessa, Michelle
作者单位：Virginia Polytechnic Institute & State University; Michigan State University; Michigan State University's Broad College of Business
摘要：We provide large sample evidence of law firms facilitating U.S. publicly traded companies' tax planning, investigate when evidence of law firm involvement is strongest, and examine some tax planning mechanisms law firms facilitate. Because companies' tax planning relationships with law firms are not publicly observable, we use litigation filings and SEC comment letters to identify companies' observable law firm relationships. We find a positive association between companies' tax planning and t...
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作者：Tan, Hun-Tong; Yeo, Feng
作者单位：Nanyang Technological University; University of South Carolina System; University of South Carolina Columbia
摘要：We examine how managers' accounting estimates are affected by whether they are informed about an impending critical audit matter (CAM) disclosure from a close or distant auditor. A close (distant) auditor is one who has a smaller (greater) social distance from the client in terms of their working relationship. We predict and find that being informed about an impending CAM by a close (distant) auditor leads to more (less) aggressive estimates than if managers are not informed. With a close audi...
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作者：Ball, Ryan T.; Cuny, Christine
作者单位：University of Michigan System; University of Michigan; New York University
摘要：This study develops and applies a model-implied measure of information imprecision. We define information imprecision as the degree of noise in investors' prior beliefs about the firm's asset value based on the information set that is currently available. We present a model of credit default swap (CDS) spreads in which the term structure is a function of information imprecision. We exploit observable CDS spreads with short and long maturities to extract an empirical measure of information impr...
