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作者：Donelson, Dain C.; Kartapanis, Antonis; McInnis, John; Yust, Christopher G.
作者单位：University of Iowa; Texas A&M University System; Texas A&M University College Station; Mays Business School; University of Texas System; University of Texas Austin
摘要：Most accounting studies use only public enforcement actions (SEC cases) to measure accounting fraud. However, private cases (securities class actions) also play an important enforcement role. We discuss the legal standards and processes for both public and private enforcement regimes, emphasize the importance of screening cases for credible fraud allegations, and show both yield credible fraud measures. Further, we demonstrate these research design choices affect inferences from prior research...
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作者：Frankel, Richard M.; Kalay, Alon; Sadka, Gil; Zou, Yuan
作者单位：Washington University (WUSTL); Michigan State University; Michigan State University's Broad College of Business; University of Texas System; University of Texas Dallas; Harvard University
摘要：Prior literature presents various perspectives on the role of financial reporting. One view is that mandatory periodic reporting disciplines managers and encourages timely voluntary disclosure. We examine this confirmation hypothesisusing the shock to financial reporting quality experienced by Arthur Andersen clients forced to switch auditors. Consistent with the confirmation hypothesis, we find that former Andersen clients increase disclosure after they change auditors. They increase forecast...
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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：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：Kim, Eunjee; Sethuraman, Mani; Steffen, Thomas D.
作者单位：Texas A&M University System; Texas A&M University College Station; Mays Business School; Cornell University; Yale University
摘要：We explore the role of investor relations (IR) in debt markets. Using earnings announcements as a laboratory, we examine whether, when, and to what extent IR departments help credit investors assimilate information. We find that the presence of IR decreases (increases) the negative (positive) impact on CDS spreads stemming from bad (good) earnings news, suggesting that IR efforts improve information precision and reduce transparency risk. Cross-sectional analyses suggest that IR matters more w...
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作者：Cascino, Stefano; Clatworthy, Mark A.; Garcia Osma, Beatriz; Gassen, Joachim; Imam, Shahed
作者单位：University of London; London School Economics & Political Science; University of Bristol; Universidad Carlos III de Madrid; Humboldt University of Berlin; University of Warwick
摘要：We examine how investment professionals assess the usefulness of financial accounting information depending on their information acquisition objectives and preparers' earnings management incentives. We conduct a survey experiment based on face-to-face interviews with investment professionals and document two main results. First, we find that, compared with investment professionals assigned a firm valuation objective, those assigned a managerial performance evaluation objective assess accountin...
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作者：Song, Shiwon
作者单位：INSEAD Business School
摘要：I examine a fundamental determinant of disclosure quality: how underlying data are disaggregated. For this, I create a measure of industry disaggregation, which is the extent to which segment disclosures are disaggregated based on underlying industries. To identify underlying industries, I apply a deep learning algorithm that extracts textual features from Item 1 business descriptions, in which firms are required to accurately describe their products and services. Industry disaggregation captu...
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作者：Gee, Kurt H.; Linsmeier, Thomas J.; Partridge, Clay
作者单位：University System of Ohio; Ohio State University; University of Wisconsin System; University of Wisconsin Madison
摘要：We provide the first evidence after Regulation G on firms' non-GAAP EPS denominator choices and whether they are informative or opportunistic. From 2013 to 2019, 17 percent of annual non-GAAP EPS numbers use denominators different from that of GAAP diluted EPS, which makes denominator adjustments among the most prevalent individual types of non-GAAP adjustments. For firms reporting GAAP and non-GAAP profits or GAAP losses and non-GAAP profits, we provide evidence consistent with denominator ad...
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作者：Dekeyser, Simon; Gaeremynck, Ann; Knechel, W. Robert; Willekens, Marleen
作者单位：KU Leuven; State University System of Florida; University of Florida; University of Auckland; University of New South Wales Sydney; BI Norwegian Business School
摘要：Economic incentives are fundamental for understanding auditor behavior. In this paper, we investigate the association between the extent of partners' fee-based compensation, partners' observable net wealth, and audit quality. Using a sample of Belgian Big 4 audit firms and their predominantly private clients, our results suggest a negative association between audit quality and partner fee-based compensation, and a positive association between audit quality and partner observable net wealth. Mo...
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作者：Agarwal, Ashish; Chen, Shannon; Mills, Lillian F.
作者单位：University of Texas System; University of Texas Austin; University of Arizona; University of Texas System; University of Texas Austin
摘要：We examine the effect of pass-through entities embedded in corporate structures on tax avoidance, tax uncertainty, and tax noncompliance using unique, confidential tax return data that link corporations and pass-through entities together through Schedules K-1. We develop measures of the use of pass-through entities such as the number and connectednessof pass-throughs within the structure, the presence of loss pass-throughs or asymmetric allocations of such losses, and connections to entities e...
