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作者：Huang, Sterling; Roychowdhury, Sugata; Sletten, Ewa
作者单位：Singapore Management University; Boston College; University System of Ohio; Ohio State University
摘要：In this paper, we rely on an exogenous shock to examine the impact of litigation risk on real earnings management (REM). We conduct difference-in-differences tests centered on an unanticipated court ruling that reduced litigation risk for firms headquartered in the Ninth Circuit. REM increases significantly following the ruling for Ninth Circuit firms relative to other firms, consistent with litigation risk deterring REM. Additional analyses reveal that REM rises more following the ruling when...
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作者：Chen, Jeff Zeyun; Chen, Mei-Hui; Chin, Chen-Lung; Lobo, Gerald J.
作者单位：Texas Christian University; National Defense University - USA; National Chengchi University; University of Houston System; University of Houston
摘要：We hypothesize that if individual auditors possess unique audit styles that they consistently apply to different audit engagements, then client firms with a common signing auditor will exhibit higher earnings comparability. Using a large sample of Chinese firms, we find that client firms report more comparable earnings when they are audited by the same individual auditor than when they are audited by (1) different audit firms, (2) the same audit firm, but different audit offices, and (3) the s...
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作者：Rothenberg, Naomi R.
作者单位：University of Alberta
摘要：This paper studies how legal liability due to negligence can weaken or strengthen an auditor's reputation concerns in the client market to provide high audit effort. A negligence liability rule relies on auditing standards to provide a threshold for the level of due care. When the negligence standard is lax, legal liability can weaken the auditor's reputation incentives, with lower audit effort than without legal liability. If the damage payment is low, noncompliance is less costly, because wi...
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作者：Bhat, Gauri; Desai, Hemang A.
作者单位：Southern Methodist University
摘要：This paper empirically examines the association between bank capital and banks' monitoring effort. We use four proxies to measure the unobservable monitoring effort. Two of the proxies are based on loan quality (ex post outcomes of monitoring effort). The other two proxies are based on salary expense (ex ante proxies intended to capture the quality and quantity of labor input into monitoring effort). Using a bank and time fixed effects estimation, we find a positive association between bank ca...
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作者：Isidro, Helena; Nanda, Dhananjay (DJ); Wysocki, Peter D.
作者单位：Instituto Universitario de Lisboa; University of Miami; Boston University
摘要：We provide new evidence on the codependence among the many country attributes previously linked to financial reporting quality. First, we show that the synchronicity of 21 changing country attributes spikes surrounding mandatory IFRS adoption. Thus, while IFRS adoption explains'' increased reporting quality, this finding disappears after including other changing country determinants of reporting quality. Second, a single underlying factor distills the numerous reporting quality measures used i...
