-
作者：Hope, Ole-Kristian; Lu, Haihao (Ross)
作者单位：University of Toronto; BI Norwegian Business School; University of Waterloo
摘要：This paper examines economic consequences of a 2006 Securities and Exchange Commission regulation that mandated public firms to disclose their governance policies on related-party transactions (RPTs). Employing hand-collected RPT data for S&P 1500 firms, we find that the initiation of RPT governance disclosure significantly reduces the occurrence of RPTs, and that the reduction in RPTs is negatively associated with the implied cost of capital (ICC) and positively related to Tobin's Q. These ef...
-
作者：Barth, Mary E.; Landsman, Wayne R.; Raval, Vivek; Wang, Sean
作者单位：Stanford University; University of North Carolina; University of North Carolina Chapel Hill; University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital; Southern Methodist University
摘要：This study finds that greater asymmetric timeliness of earnings in reflecting good and bad news is associated with slower resolution of investor disagreement and uncertainty at earnings announcements. These findings indicate that a potential cost of asymmetric timeliness is added complexity from requiring investors to disaggregate earnings into good and bad news components to assess the implications of the earnings announcement for their investment decisions. Such a disaggregation impedes the ...
-
作者：Kaplan, Steven E.; Kenchington, David G.; Wenzel, Brian S.
作者单位：Arizona State University; Arizona State University-Tempe; McGill University
摘要：Research documents that firms shift operating expenses into income-decreasing, but not income-increasing, discontinued operations. We argue that valuation considerations explain this asymmetric result, as acquirers are likely to value the earnings of income-increasing discontinued operations more highly than the earnings of income-decreasing discontinued operations. Using a large sample of hand-collected data, we show that pre-tax earnings and operating expenses are significantly more value-re...
-
作者：Bauer, Tim D.; Bucaro, Anthony C.; Estep, Cassandra
作者单位：University of Waterloo; University System of Ohio; Case Western Reserve University; Emory University
摘要：Regulators are concerned that auditors do not sufficiently identify and report material weaknesses in internal control over financial reporting (ICFR). However, psychological licensing theory suggests reporting material weaknesses could have unintended consequences for acceptance of aggressive client financial reporting. In an experiment, we predict and find auditors accept more aggressive client reporting after they report a material weakness in ICFR than after they report no material weaknes...
-
作者：Choi, Jongwoon (Willie); Hecht, Gary; Tafkov, Ivo D.; Towry, Kristy L.
作者单位：University of Wisconsin System; University of Wisconsin Madison; University of Illinois System; University of Illinois Urbana-Champaign; University System of Georgia; Georgia State University; Emory University
摘要：Performance measure noise can be a critical barrier to employees' learning. Using an experiment, we examine whether the effects of performance measure noise on employees' learning depends on the type of learning in which employees engage: experiential versus vicarious. We predict and find performance measure noise has a more deleterious effect on learning when such learning occurs experientially rather than vicariously. Specifically, we find experiential learners demonstrate less learning as p...
-
作者：Klein, Aleksandra; Speckbacher, Gerhard
作者单位：Vienna University of Economics & Business
摘要：Organizations frequently use teams for creative problem-solving. Evaluating the performance of creative teams based on customer-related accounting data, such as client satisfaction measures, revenues, or profits, clarifies which kind of creativity is expected from the team and potentially makes the creative process more effective. However, the use of such accounting data in performance evaluations may amplify the tensions between the artistic merit and the commercial success of creative ideas ...
-
作者：Hecht, Gary; Hobson, Jessen L.; Wang, Laura W.
作者单位：University of Illinois System; University of Illinois Urbana-Champaign
摘要：Conventional wisdom suggests that frequent performance reporting is beneficial for decision making, as it can enhance timeliness and usefulness of the reported information for decision making. We investigate a potential motivational cost of frequent performance reporting. Using goal orientation theory, we predict and find that frequent performance reporting has negative motivational and performance implications when employees know or assume that the information they report will be used to eval...
-
作者：Deller, Carolyn; Sandino, Tatiana
作者单位：University of Pennsylvania; Harvard University
摘要：We examine how changing the allocation of hiring decision rights in a multiunit organization affects employee-firm match quality, contingent on a unit's circumstances. Our research site, a U.S. retail chain, switched from a decentralized hiring model (hiring by business unit managers-in our case, store managers) to centralized hiring (in this study, by the head office). While centralized hiring can ensure that enough resources are invested in hiring people aligned with company values, it can a...
-
作者：Chircop, Justin; Collins, Daniel W.; Hass, Lars Helge; Nguyen, Nhat (Nate) Q.
作者单位：Lancaster University; University of Iowa; Colorado State University System; Colorado State University Fort Collins
摘要：We predict that a firm's greater accounting comparability with its industry peers facilitates its learning from those peer firms' research and development (R&D) investments, allowing that firm to have greater innovative efficiency. We estimate accounting comparability using pro forma capitalized R&D earnings that link lagged R&D expenditures to future profitability employing the Almon (1965) distributed lag model. We find that greater accounting comparability leads to enhanced ability to predi...
-
作者：Bhaskar, Lori Shefchik
作者单位：Indiana University System; Indiana University Bloomington
摘要：I provide theory-based causal evidence on the effects of risk-based regulatory inspections, modeled after the PCAOB's, on auditor behavior in a multi-client setting where clients with relatively higher misstatement risk (higher-risk'' clients) have a higher risk of being inspected than clients with relatively lower misstatement risk (lower-risk'' clients). I predict and find that inspections increase auditor effort, but only for higher-risk clients. Inspections also impair auditors' decision p...
