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作者：Caskey, Judson; Ozel, N. Bugra
作者单位：University of California System; University of California Los Angeles; University of Texas System; University of Texas Dallas
摘要：This study sheds light on the extent to which the use of operating leases depends on reporting incentives, such as understating liabilities, and non-reporting incentives that partly arise from the overlap between accounting, bankruptcy, and tax laws, such as increasing financing capacity and flexibility. We provide evidence that expanding financing capacity, accommodating volatile operations, and maximizing the present value of tax deductions are all important drivers of leasing decisions. Our...
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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：Gao, Pingyang; Zhang, Gaoqing
作者单位：University of Chicago; University of Minnesota System; University of Minnesota Twin Cities
摘要：We propose a model to study how auditing standards affect audit quality. We posit that both auditors' incentives and expertise are relevant for audit effectiveness. Auditing standards are useful in mitigating the auditors' possible misalignment of interest with investors. However, auditing standards also restrict auditors' exercise of professional judgment, which, in turn, leads to compliance mentality and reduces auditors' incentives to become competent in the first place. We identify the con...
