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作者：Christensen, Brant E.; Lundstrom, Nathan G.; Newton, Nathan J.
作者单位：University of Oklahoma System; University of Oklahoma - Norman; University of Kansas; State University System of Florida; Florida State University
摘要：We examine whether PCAOB inspection reports increase auditors' litigation risk. We find that inspection reports with audit deficiencies are positively associated with the number of lawsuits subsequently filed against the inspected auditor. These results are strongest when client-level lawsuit-triggering events have already occurred and when PCAOB inspection content is arguably more persuasive. Importantly, these results pertain exclusively to triennially inspected audit firms for which the set...
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作者：Kubic, Matthew
作者单位：University of Texas System; University of Texas Austin
摘要：The ability to detect misreporting is an important aspect of financial reporting regulation. I derive a measure of SEC error detection rates using information from comment letter reviews. Conditional on the SEC issuing a comment letter, I find that the review team detects an error resulting in a restatement in 4.6 percent of cases, while firms eventually restate financial reports for 13.6 percent of periods under review. My measure of SEC error detection rates is the ratio of reviews that dete...
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作者：Li, Oliver Zhen; Liu, Hang; Ni, Chenkai
作者单位：Shanghai Lixin University of Accounting & Finance; National University of Singapore; Fudan University
摘要：We examine whether dividend tax induced lock-in reduces idiosyncratic volatility. The 2012 Dividend Tax Reform in China tied individual investors' dividend tax to the length of their shareholding period, with short-term individual investors entering into higher tax brackets. We find that high dividend firms experience a reduction in idiosyncratic volatility, relative to low dividend firms, after the reform. The effect is more pronounced when high dividend firms have more retail investors and e...
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作者：Bochkay, Khrystyna; Joos, Peter R.
作者单位：University of Miami; INSEAD Business School
摘要：Risk forecasting is crucial for informed investment decision-making. Moreover, the salience of investment risk increases during economically uncertain times. In this paper, we study how sell-side analysts form expectations of firm risk, under different macroeconomic conditions (low versus high uncertainty) and by distinguishing between quantitative and qualitative information inputs. We find that analysts jointly consider quantitative and qualitative information, but that their reliance on qua...
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作者：Lee, Charles M. C.; Watts, Edward M.
作者单位：Stanford University
摘要：This study examines how an increase in tick size affects algorithmic trading (AT), fundamental information acquisition (FIA), and the price discovery process around earnings announcements (EAs). Leveraging the SEC's randomized Tick Size Pilot experiment, we show that a tick size increase results in a decline in AT and a sharp drop in absolute cumulative abnormal returns and volume around EAs. More importantly, we find increased FIA in the preannouncement period. Specifically, we show: (1) trea...
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作者：Boone, Audra L.; Schumann-Foster, Kathryn; White, Joshua T.
作者单位：Texas Christian University; U.S. Securities & Exchange Commission (SEC); Vanderbilt University
摘要：We study how home-market reporting requirements and listing choices associate with ongoing SEC disclosures by foreign firms and the investor response. The SEC defers material event and interim financial disclosure obligations to foreign firms' home-market regulator or exchange. We find that a growing number of foreign firms incorporate in disclosure havens and have few or no event-driven disclosure obligations. These firms furnish fewer 6-K disclosures, but experience greater investor interest...
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作者：Bourveau, Thomas; Breuer, Matthias; Koenraadt, Jeroen K. G.; Stoumbos, Robert
作者单位：Columbia University; University of London; London School Economics & Political Science; ESSEC Business School
摘要：We describe the development of public company auditing in the U.S. in the early 20th century to gain perspective on current developments in environmental, social, and governance (ESG) assurance. Using a broad sample of historical annual reports spanning four decades, we document three facts: first, the spread of public company auditing occurred steadily over the span of several decades. Second, audit services were initially heterogeneous but became standardized through the audit profession's e...
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作者：Buchanan, Jessica L.; Commerford, Benjamin P.; Wang, Elaine (Ying)
作者单位：Providence College; University of Kentucky; University of Massachusetts System; University of Massachusetts Amherst
摘要：Informed by Perceptual Deterrence Theory, we conduct multiple experiments to investigate when and how auditor actions can help deter manager opportunism. In Study 1A, we find that managers are less likely to use real earnings management (REM) when they expect auditors to both increase scrutiny and communicate their observations to the board. However, this effect occurs only when managers' operational decisions are inconsistent (versus consistent) with peer behavior. Study 1B findings suggest t...
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作者：Huang, Henry He; Wang, Chong
作者单位：Yeshiva University; Hong Kong Polytechnic University
摘要：This paper studies the financial consequences of a reported data breach for bank loan terms. Using a staggered difference-in-differences approach with treatment and control samples matched by data breach propensity, we find that firms that have reported data breaches face higher loan spreads and their loans are more likely to require collateral and demand more covenants. The effects are more pronounced when the data breach involves criminal activities or the loss of a large number of records, ...
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作者：Kim, Jaewoo; Nessa, Michelle; Wilson, Ryan J.
作者单位：University of Oregon; Michigan State University; Michigan State University's Broad College of Business
摘要：We examine the effects of increased competition stemming from corporate tax rate cuts in foreign competitors' home countries on U.S. domestic manufacturing firms. We develop a measure of U.S. domestic firms' exposure to changes in foreign country tax rates and validate that the measure captures increased competition in the U.S. We find that, on average, U.S. domestic firms lose market power following declines in foreign country tax rates. We also find that, on average, U.S. domestic firms resp...
