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作者：Bentley, Jeremiah W.; Lambert, Tamara A.; Wang, Elaine (Ying)
作者单位：University of Massachusetts System; University of Massachusetts Amherst; Lehigh University
摘要：We investigate whether and how a critical audit matter (CAM) disclosure affects managers' real operating decisions in two contexts (issuing a loan that decreases versus increases the average risk profile of loan portfolios, or choosing to hedge versus speculate on commodity risk). We expect that a CAM disclosure increases disclosure costs and implies expanded auditor support for both types of activities, but we expect implied auditor support to be valued more highly for risk-increasing than fo...
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作者：Hammersley, Jacqueline S.; Ricci, Michael A.
作者单位：University System of Georgia; University of Georgia; State University System of Florida; University of Florida
摘要：Auditors experience difficulty auditing accounts for which it is difficult to identify in advance all the evidence necessary to perform an effective audit. These accounts are challenging because they commonly require auditors to collect additional, relevant evidence in response to new information received during evidence collection. We address this experimentally by examining whether changing the focus of audit programs from plan-focused (i.e., focused on the planned audit procedures) to goal-...
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作者：Billings, Bruce K.; Keskek, Sami; Pierce, Spencer
作者单位：State University System of Florida; Florida State University
摘要：We extend prior research examining the relation between aggregate recommendation changes and future returns by documenting that this relation varies over time as a function of the predictability of future earnings growth. When industry-level earnings growth is more predictable, we find that recommendation changes relate negatively to future returns. Our evidence suggests that this negative relation results from analysts revising recommendations upward for higher expected earnings growth but fa...
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作者：Cadman, Brian; Carter, Mary Ellen; Peng, Xiaoxia
作者单位：Utah System of Higher Education; University of Utah; Boston College
摘要：We examine whether firms benchmark annual equity grants to compensation peers and whether meeting the participation constraint is a motive. Studying CEO equity grants over the period of 2006-2016 and compensation peers disclosed by the firm, we find that equity grants by these peers significantly determine a firm's equity grants. We find no evidence that the relation between a firm's and its peers' CEO equity grants is an indirect outcome of meeting peer total compensation levels. In contrast,...
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作者：Chang, Woo-Jin; Monahan, Steven J.; Ouazad, Amine; Vasvari, Florin P.
作者单位：Hautes Etudes Commerciales (HEC) Paris; Utah System of Higher Education; University of Utah; Universite de Montreal; HEC Montreal; University of London; London Business School
摘要：We evaluate whether reported accounting numbers are informative about earnings uncertainty and whether earnings uncertainty is priced. We use quantile regressions to forecast the standard deviation, skewness, and kurtosis of future earnings. These three moments are important measures of earnings uncertainty because they reflect the size of the average deviation from expected earnings and the amount of extreme upside potential, extreme downside risk, or both. We develop a novel approach for eva...
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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：Cheng, Mei; Hodder, Leslie D.; Watkins, Jessica
作者单位：University of Arizona; Indiana University System; IU Kelley School of Business; Indiana University Bloomington; University of Notre Dame
摘要：We document multiple dimensions of usefulness of banks' interest income sensitivity disclosures. First, we find management-generated sensitivity measures are predictive of future realized changes in net interest income. Second, we find financial analysts' forecasts of net interest income reflect information provided by interest income sensitivity disclosures. Third, we find equity market responses to interest rate shocks as well as firms' interest rate betas are larger for banks with greater d...
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作者：Gao, Xinzi; Wong, T. J.; Xia, Lijun; Yu, Gwen
作者单位：Shenzhen University; University of Southern California; Shanghai Jiao Tong University; University of Michigan System; University of Michigan
摘要：Social ties between mutual funds and the companies in which they invest (investees) can both facilitate information transfers and encourage favoritism. Using the investment choices of mutual funds in China, we compare investment performance of holdings in companies that are socially connected to mutual funds versus those that are not. We find that funds allocate more investment to connected investees' stocks, especially when a fund is weakly monitored. This overweighting is greater in times of...
