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作者：Zarowin, Paul A.
作者单位：New York University
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作者：Emett, Scott A.
作者单位：Arizona State University; Arizona State University-Tempe
摘要：I examine how and why current-period performance shapes investors' evaluations of future-oriented disclosures. Three experiments provide evidence that a firm's current-period performance shapes investors' beliefs about the appropriateness of managerial optimism, which, in turn, affects investors' evaluation of firms that focus on either challenges or opportunities in future-oriented disclosures. When a firm is performing poorly, investors believe that managers can best achieve success by being...
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作者：Kothari, S. P.
作者单位：Massachusetts Institute of Technology (MIT)
摘要：Accounting standards are crucially relevant in the context of the use of accounting information in corporate governance. Notwithstanding highly liquid capital markets, large and small shareholders, many activist shareholders, sophisticated analysts, vigilant press reporters, and a vibrant litigious environment, corporate governance challenges continue to make media headlines, and they seem to occur with a great degree of regularity. The essay offers a high-level description of the objectives o...
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作者：Carnes, Robert R.; Christensen, Dane M.; Lamoreaux, Phillip T.
作者单位：State University System of Florida; University of Florida; University of Oregon; Arizona State University; Arizona State University-Tempe
摘要：Because internal control audits never existed before the passage of the Sarbanes-Oxley Act (SOX), and these audits simultaneously became mandatory for all U.S. accelerated filer companies, it has been difficult to assess the extent of investor demand for these audits. To understand whether investors demand internal control audits for these large companies, we exploit a regulatory exemption that permits companies to exclude acquired operations from an internal control audit. Using this voluntar...
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作者：Jiang, John (Xuefeng); Wang, Isabel Yanyan; Wang, K. Philip
作者单位：Michigan State University; State University System of Florida; University of Florida
摘要：Whether Big N auditors provide higher audit quality than non-Big N auditors remains a debate. We add new evidence to this debate by utilizing the setting of Big N auditors' acquisitions of non-Big N auditors. We identify 331 treatment firms that switched to Big N auditors due to the exogenous shocks imposed by Big N acquisitions. Our difference-in-differences analyses show that treatment firms' audit quality improves after switching to Big N auditors. In comparison, mergers or acquisitions amo...
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作者：Gao, Zhan; Myers, James N.; Myers, Linda A.; Wu, Wan-Ting
作者单位：Lancaster University; University of Tennessee System; University of Tennessee Knoxville; University of Massachusetts System; University of Massachusetts Boston
摘要：This paper investigates the validity and usefulness of hybrid valuation models. We recast the model in Ohlson and Johannesson (2016) as a hybrid of the Dividend Discount Model and an earnings-based price multiple model, and develop a new hybrid model that generalizes the Residual Income Valuation Model. After validating the theoretical properties of these models' unique parameters, we assess the usefulness of the hybrid models in two applications. In application one, we find that intrinsic val...
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作者：Hoang, Kris; Jamal, Karim; Tan, Hun-Tong
作者单位：University of Alabama System; University of Alabama Tuscaloosa; University of Alberta; Nanyang Technological University
摘要：We examine determinants of audit engagement profitability using proprietary data from the national office of a Big 4 public accounting firm in Canada. We verify through interviews with senior audit partners that the audit realization rate is the primary measure used to assess engagement-level profitability, and use the former to proxy for engagement profitability in our archival analysis. We find that engagement profitability is positively associated with the firm's assignment of lead senior a...
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作者：Corona, Carlos; Nan, Lin; Zhang, Gaoqing
作者单位：Carnegie Mellon University; Purdue University System; Purdue University; University of Minnesota System; University of Minnesota Twin Cities
摘要：This paper examines banks' choice between fair-value and historical-cost accounting when reported accounting information is used in capital requirement regulation. We center our analysis on a key difference between fair-value and historical-cost accounting: the frequency with which asset value changes are reported. We show that the elasticity of banks' loan returns to aggregate lending is a critical determinant of the interaction between capital adequacy requirements and accounting choices. If...
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作者：Lee, Kyungha (Kari); Menon, Rahul
作者单位：Rutgers University System; Rutgers University New Brunswick; Purdue University System; Purdue University
摘要：This paper develops an economic model of how subjectivity in accounting estimates affects a manager's reporting behavior and auditors' subsequent information aggregation decision. In our model, the auditor receives a potentially manipulated report from the manager and uses an additional, albeit less precise, estimate to verify the report. We show, perhaps surprisingly, that as subjectivity increases, the auditor puts more weight on the manager's report, but the manager manipulates her report l...
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作者：Gaver, Jennifer J.; Utke, Steven
作者单位：University System of Georgia; University of Georgia; University of Connecticut
摘要：We argue that the association between auditor industry specialization and audit quality depends on how long the auditor has been a specialist. We measure audit quality using absolute discretionary accruals, income-increasing discretionary accruals, and book-tax differences. Our results, based on a sample of Big 4 audit clients from 2003-2015, indicate that auditors who have only recently gained the specialist designation produce a level of audit quality that does not surpass that produced by n...
