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作者：Kimbrough, Michael D.; Lee, Hanna; Zheng, Yue
作者单位：University System of Maryland; University of Maryland College Park; Hong Kong University of Science & Technology
摘要：We examine whether management forecast errors (MFEs), which are traditionally interpreted as backward-looking indicators of how well forecasts preempted earnings announcements, also operate as forward-looking measures that aid with predicting future earnings. This possibility arises if an MFE represents unrealized revenues or expenses a manager originally anticipated to occur in the forecast period but that ultimately occur in subsequent periods. Consistent with this possibility, we document t...
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作者：Hamilton, Erin L.; Smith, Jason L.
作者单位：Nevada System of Higher Education (NSHE); University of Nevada Las Vegas
摘要：Using experiments with 58 corporate managers and 215 auditors, we examine whether managers attempt to reduce the perceived intentionality of their fraudulent misstatements by perpetrating fraud via omission, as opposed to a more active form of commission, and how auditors evaluate the resulting misstatements. We find that managers choose to omit a transaction from the financial statements rather than record a transaction inappropriately. They also choose to omit critical information from suppo...
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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：Huang, Sterling; Ng, Jeffrey; Ranasinghe, Tharindra; Zhang, Mingyue
作者单位：Singapore Management University; Hong Kong Polytechnic University; American University; University of Toronto
摘要：Successful innovations could induce more disclosure if the information asymmetry between the firm and its investors about post-innovation outcomes leads investors to demand more information. However, such innovations also likely entail greater proprietary cost concerns, which deter disclosure. This paper uses patent grants to examine the effect of innovation success on management guidance behavior. We find that more management guidance follows patent grants, suggesting that despite disclosure ...
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作者：Dechow, Patricia M.; Tan, Samuel T.
作者单位：University of Southern California; Singapore Management University
摘要：We hypothesize that one way accounting practices spread is through law firm connections. We investigate this prediction by examining companies that avoided reporting compensation expense by engaging in stock option backdating. We hypothesize that executives engaged in backdating because they were desensitized to its inappropriateness when they learned through their legal counsel that other companies were engaging in this practice. We identify backdating companies through backdating-related res...
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作者：Kim, Yongtae; Su, Lixin (Nancy); Wang, Zheng; Wu, Haibin
作者单位：Santa Clara University; Korea Advanced Institute of Science & Technology (KAIST); Lingnan University; City University of Hong Kong
摘要：We exploit the staggered recognition of the Inevitable Disclosure Doctrine (IDD) by U.S. state courts to examine the effect of trade secret protection on the amount of firm-specific information incorporated in stock prices, as reflected in stock price synchronicity. We find that after certain state courts recognize the IDD, firms headquartered in those states exhibit a significant increase in stock price synchronicity relative to firms in other states. We also find a significant decrease in th...
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作者：Free, Clinton; Trotman, Andrew J.; Trotman, Ken T.
作者单位：University of Sydney; Northeastern University; University of New South Wales Sydney
摘要：This study investigates the way that experienced audit committee Chairs address barriers to effective performance. We conceptualize audit committees as groups of individuals gathering, elaborating, and sharing information, and identify key group barriers to effective audit committee oversight. Drawing on 24 interviews with audit committee Chairs from leading Australian-listed companies, we provide new evidence of the approaches used in practice to address information-processing barriers faced ...
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作者：Guttman, Ilan; Meng, Xiaojing
作者单位：New York University
摘要：We introduce real decisions (a project choice decision, an investment scale decision, and an information acquisition decision) to the Dye (1985) voluntary disclosure framework and examine how the prospect of voluntary disclosure affects managers' real decisions. Riskier projects lead to more volatile environment and hence entail higher efficiency loss at the subsequent investment scale decision stage if managers are uninformed. If managers are informed, they can withhold bad information, and t...
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作者：Li, Ningzhong; Lou, Yun; Otto, Clemens A.; Wittenberg-Moerman, Regina
作者单位：University of Texas System; University of Texas Dallas; Singapore Management University; University of Southern California
摘要：We examine the relation between accounting quality and debt concentration in corporate capital structures (i.e., firms' tendency to rely predominantly on only a few types of debt). Motivated by theoretical and empirical research that supports a strong link between debt concentration and creditors' coordination costs and the importance of accounting quality in reducing these costs, we hypothesize that firms with higher accounting quality have less concentrated debt structures. Measuring account...
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作者：Beatty, Anne; Liao, Scott
作者单位：University System of Ohio; Ohio State University; University of Toronto
摘要：We document potential cross-sectional differences in how expected loss accounting will affect provision timeliness to provide important policy insights and contribute to the literature regarding the estimation of the expected loss model adoption impact and provision timeliness determinants. Our findings that analyst provision forecasts incrementally predict future nonperforming loans (NPLs) and market returns suggest that the incurred loss provision does not incorporate all available future lo...
