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作者：Huang, Kelly; Li, Meng; Markov, Stanimir
作者单位：State University System of Florida; Florida International University; University of Texas System; University of Texas Dallas
摘要：We use employee predictions of their companies' six-month business outlook from Glassdoor.com to assess the information content of employee social media disclosures. We find that average employee outlook is incrementally informative in predicting future operating performance. Its information content is greater when the disclosures are aggregated from a larger, more diverse, more knowledgeable employee base, consistent with the wisdom of crowds phenomenon. Average outlook predicts bad news even...
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作者：Nessa, Michelle; Schwab, Casey M.; Stomberg, Bridget; Towery, Erin M.
作者单位：Michigan State University; Indiana University System; Indiana University Bloomington; University System of Georgia; University of Georgia
摘要：This study investigates how Internal Revenue Service resources affect the IRS audit process for publicly traded corporations. Using confidential IRS audit data, we examine the effect of IRS resources on the incidence and magnitude of proposed deficiencies and settlement outcomes. We find that IRS resources are positively associated with both the likelihood and magnitude of proposed deficiencies, but negatively associated with the proportion of proposed deficiencies collected. These results are...
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作者：Dodgson, Mary Kate; Agoglia, Christopher P.; Bennett, G. Bradley; Cohen, Jeffrey R.
作者单位：Northeastern University; University of Massachusetts System; University of Massachusetts Amherst; Boston College
摘要：While current audit standards explicitly state engagement partner tenure requirements, firms have flexibility in managing the rotation process. We conduct semi-structured interviews with 20 U.S. audit firm partners who share their experiences on topics including how they identify appropriate candidate partners and what efforts they undertake to manage relationships with clients post-rotation. We investigate firms' motivation to manage the auditor-client relationship through the lens of Social ...
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作者：Ma, Matthew; Pan, Jing; Stubben, Stephen R.
作者单位：Southern Methodist University; Utah System of Higher Education; University of Utah
摘要：This study documents the existence of local employment preferences for corporate executives and examines how the compensation of executives' local peers affects their own performance, risk-taking decisions, and financial reporting decisions. We find that external hires of new CEOs (CFOs) are five (eight) times more likely to be from local firms than non-local firms. We also find that local tournament incentives-as proxied by the pay gap between an executive and higher-paid executives in the ar...
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作者：Elliott, W. Brooke; Fanning, Kirsten; Peecher, Mark E.
作者单位：University of Illinois System; University of Illinois Urbana-Champaign
摘要：We present new theory and experimental findings indicating that investors ascribe value to firms that use higher financial reporting quality (FRQ), controlling for the influence of higher FRQ on their estimates of these firms' fundamental value. To guide our investigation, we draw on the cooperation literature in accounting, finance, and psychology. We identify expanded audit reports, particularly auditor commentary, as a mechanism that credibly communicates whether a firm uses higher FRQ. Aud...
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作者：Lai, Shufang; Li, Zengquan; Yang, Yong George
作者单位：Southern University of Science & Technology; Shanghai University of Finance & Economics; Chinese University of Hong Kong
摘要：We test whether CEOs working near their childhood homes are less likely than nonlocal CEOs to make myopic decisions. Place attachment theories suggest that people develop mutual caretaking relationships with their birthplaces. Also, executive labor markets face less information asymmetry about local CEOs, resulting in lower pressure on local CEOs for quick profits. Consistent with the prediction, we find that local CEOs are less likely to cut R&D expenditures for beating analyst forecasts or a...
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作者：Bochkay, Khrystyna; Hales, Jeffrey; Chava, Sudheer
作者单位：University of Miami; University of Texas System; University of Texas Austin; University System of Georgia; Georgia Institute of Technology
摘要：We develop a dictionary of linguistic extremity in earnings conference calls, a setting where managers have considerable latitude in the language they use, to study the role of extreme language in corporate reporting. Controlling for tone (positive versus negative) of language, we document that when managers use more extreme words in earnings conference calls, trading volume around the call increases and stock prices react more strongly. In addition, both effects are more pronounced for firms ...
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作者：Baldenius, Tim; Michaeli, Beatrice
作者单位：Columbia University; University of California System; University of California Los Angeles
摘要：We consider the optimal allocation of decision rights over noncontractible specific investments. Risk-averse business unit managers each engage in general (stand-alone) operations and invest in joint projects that benefit their own and other divisions. Which of the managers should have the authority to choose these investments? With scalable investments, we show that decision rights should be bundled in the hands of the manager facing the more volatile environment. With discrete (lumpy) invest...
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作者：Dikolli, Shane S.; Keusch, Thomas; Mayew, William J.; Steffen, Thomas D.
作者单位：University of Virginia; INSEAD Business School; Duke University; Yale University
摘要：We investigate the audit fee response to CEO behavioral integrity (BI). BI refers to the perceived congruence between an individual's words and deeds (Simons 2002). Because low word-deed congruence should result in more explanations when communicating, we use variation in explanations beyond firm fundamentals and CEO-specific characteristics in more than 30,000 shareholder letters to serve as a linguistic-based proxy for CEO BI. We find that audit fees increase as BI decreases, but BI is not a...
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作者：Weber, David P.; Yang, Yanhua Sunny
作者单位：University of Connecticut
摘要：When larger market values of equity result in being subject to costly regulation, firms have incentives to shift their sources of financing toward debt and away from equity. We use the Sarbanes-Oxley Act of 2002 (SOX) as a setting to provide evidence of such incentives. Smaller firms were granted several reprieves and eventually exempted from the internal control audit requirements of SOX Section 404, which many consider the most costly and onerous aspect of SOX. Using a difference-in-differen...
