-
作者：Guan, Yuyan; Lobo, Gerald J.; Tsang, Albert; Xin, Xiangang
作者单位：City University of Hong Kong; University of Houston System; University of Houston; Hong Kong Polytechnic University
摘要：We investigate the relationship between societal trust and managers' decisions to voluntarily issue earnings forecasts. We reason that managers are more likely to issue earnings forecasts in high-trust countries than in low-trust countries because investors view these voluntary disclosures as more credible information about the firm's future profitability. We find evidence consistent with these predictions, suggesting that societal trust fosters corporate voluntary disclosure. We also document...
-
作者：Friedman, Henry L.
作者单位：University of California System; University of California Los Angeles
摘要：This study examines whether investor-level preferences for director characteristics influence portfolio choices, using data on the U.S. holdings of non-U.S. funds. Consistent with bias-based preferences influencing portfolio allocations, funds from countries with greater gender inequality invest less and hold smaller stakes in firms with more female directors. Since variation in funds' home country gender biases are plausibly unrelated to the selection and performance of female directors in U....
-
作者：Guenther, David A.; Njoroge, Kenneth; Williams, Brian M.
作者单位：University of Oregon; William & Mary; Indiana University System; Indiana University Bloomington
摘要：We provide evidence about allocations of cash flow freed up by not paying taxes (tax-related cash''). Uncertainty about future repayments suggests firms may use tax-related cash more cautiously than other cash flow. We utilize a flow-of-funds model from finance to quantify the relative amounts of tax-related cash associated with various potential uses of operating cash flow. We find firms allocate tax-related cash differently than other after-tax cash flow. Prior studies find tax avoiders hold...
-
作者：Ogneva, Maria; Piotroski, Joseph D.; Zakolyukina, Anastasia A.
作者单位：University of Southern California; Stanford University; University of Chicago
摘要：In this paper, we use accounting fundamentals to measure systematic risk of distress. Our main testable prediction-that this risk increases with the probability of recessionary failure, P(RjF)-is based on a stylized model that guides our empirical analyses. We first apply the lasso method to select accounting fundamentals that can be combined into P(RjF) estimates. We then use the obtained estimates in asset-pricing tests. This approach successfully extracts systematic risk information from ac...
-
作者：Aobdia, Daniel; Li, Qin; Na, Ke; Wu, Hong
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; Hong Kong Polytechnic University; Fudan University
摘要：This paper examines the influence of labor market power in the audit profession. Using a dataset of online job postings, we confirm that audit offices in more concentrated labor markets have greater labor market power and exercise it in the form of higher skill requirements and greater required effort from their auditors, at similar or slightly lower wages. We then show that client firms of audit offices in more concentrated labor markets are less likely to restate their earnings and have lowe...
-
作者：Mendoza, Kim, I
作者单位：University of Illinois System; University of Illinois Urbana-Champaign
摘要：Underreporting, or reporting fewer hours than actually worked, is a prevalent behavior among auditors at all levels. Underreporting can result in negative consequences, such as tight budgets and reductions in future audit quality. In this paper, I propose a low-cost budget formatting procedure that reduces underreporting. Using an experiment, I document that individuals with higher underreporting incentives underreport less when given an aggregated budget relative to a disaggregated budget. Wh...
-
作者：Shang, Ruidi; Abernethy, Margaret A.; Hung, Chung-Yu
作者单位：Tilburg University; University of Melbourne
摘要：Economics, social psychology, and management studies suggest that group identity plays an important role in directing employee behaviors. On the one hand, strong group identity could motivate high effort to resolve conflicts of interests in the workplace. On the other hand, it could encourage conformity toward group norms. We examine whether the effect of group identity is conditional on managers' performance reporting choices. Drawing on survey and archival data from a field site, we find tha...
-
作者：Hemmer, Thomas
作者单位：Rice University
摘要：In this paper I revisit the issue of real income smoothing in the setting used by Lambert (1984). I demonstrate that the particular effect identified in his paper is actually an error: under his assumptions, there is no input-driven equilibrium income smoothing of the type he suggests. There are, however, several other drivers of equilibrium behavior ignored in that paper. In this paper, I identify those and, for the particular model structure, show that when all effects are considered togethe...
-
作者：Peyravan, Leila
作者单位：Rice University
摘要：I investigate whether the financial reporting quality (FRQ) of a firm influences the propensity of institutional investors to simultaneously hold the firm's debt and equity (dual-holding). I predict that the underlying reason for institutional dual-holding is access to the better information that is available to lenders in firms with low FRQ. Accordingly, I find that dual-holders are more likely to participate in firms with low FRQ. Additionally, I predict and find that dual-holders trade on t...
