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作者：Commerford, Benjamin P.; Hatfield, Richard C.; Houston, Richard W.
作者单位：University of Kentucky; University of Alabama System; University of Alabama Tuscaloosa
摘要：Recent research reveals that accruals-based earnings management (AEM) is decreasing while real earnings management (REM) is increasing, suggesting the correlation is due to regulatory scrutiny. However, based on Correspondent Inference Theory, we predict and find that when management uses REM, auditors are more restrictive of management's subjective estimates, making it more difficult for management to use income-increasing AEM. Our experiment manipulates the presence versus absence of REM, an...
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作者：Bills, Kenneth L.; Hayne, Christie; Stein, Sarah E.
作者单位：University of Arkansas System; University of Arkansas Fayetteville; University of Illinois System; University of Illinois Urbana-Champaign; Virginia Polytechnic Institute & State University
摘要：Small accounting firms represent important participants in the audit market, yet details of how they operate and develop competencies remain unexplored. Small firms often join forces through accounting associations and networks (AANs), which may help them overcome significant challenges commonly faced by smaller firms. We interview 37 partners from 18 firms representing nine AANs to examine how small firms leverage their AAN membership and to understand the related implications for audit quali...
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作者：Givoly, Dan
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
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作者：Bird, Andrew; Edwards, Alexander; Ruchti, Thomas G.
作者单位：Carnegie Mellon University; University of Toronto
摘要：A growing literature examines how a firm's behavior impacts the behavior of its peers. In this paper, we examine how changes in tax paying, and the associated financial reporting, impact a firm's peers. Changes to tax paying and reporting behavior at other firms within a peer group can be affected by many of the same factors, such as industry-level tax policy changes or audit risk, so we make use of exogenous-to the peer firms-shocks to tax behavior. Following the methodology of Dyreng, Hanlon...
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作者：Harris, Trevor S.; Khan, Urooj; Nissim, Doron
作者单位：Columbia University
摘要：Estimating expected credit losses on banks' portfolios is difficult. The issue has become of increasing interest to academics and regulators with the FASB and IASB issuing new regulations for loan impairment. We develop a measure of the one-year-ahead expected rate of credit losses (ExpectedRCL) that combines various measures of credit risk disclosed by banks. It uses cross-sectional analyses to obtain coefficients for estimating each period's measure of expected credit losses. ExpectedRCL sub...
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作者：Black, Jonathan; Chen, Jeff Zeyun; Cussatt, Marc
作者单位：Purdue University System; Purdue University; Texas Christian University; Washington State University
摘要：Investors demand conditional conservatism to restrict managers' ability to opportunistically exploit unverifiable accounting estimates. The fair value estimation process is subject to verifiability concerns when market prices are unavailable and, thus, susceptible to managerial discretion. We explore whether banks' exposure to less-verifiable fair value estimates is associated with conditional conservatism. General and bank-specific conservatism measures indicate that banks with greater propor...
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作者：Frankel, Richard M.; Sun, Yan
作者单位：Washington University (WUSTL); Saint Louis University
摘要：Our goal is to understand the extent to which cash-flow properties explain accruals. Using the Dechow, Kothari, and Watts (1998) model, we derive a negative relation between accruals and cash-flow changes, and show that the strength of the relation is linked to negative serial correlation in cash-flow changes. Dechow et al. (1998) also suggest that the strength of the relation between accruals and revenue changes relates to operating cycle length. Prior accrual models have not incorporated the...
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作者：Gong, Guojin; Luo, Shuying
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; University of Hong Kong
摘要：Lenders often have lending relationships with borrowers' major customers (labeled as supply-chain lenders). We hypothesize that private information obtained from borrowers' major customers can facilitate more timely and precise evaluation of borrowers' creditworthiness; this potentially reduces supply-chain lenders' reliance on accounting conservatism in debt contracting. Consistently, we find that suppliers borrowing from supply-chain lenders provide less conservative financial statements tha...
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作者：Simon, Chad A.; Smith, Jason L.; Zimbelman, Mark F.
作者单位：Utah System of Higher Education; Utah State University; Nevada System of Higher Education (NSHE); University of Nevada Las Vegas; Brigham Young University
摘要：Auditing standards recommend separate assessments of the likelihood and magnitude of risks (hereafter, LM decomposition). Prior research shows that decomposition can focus individuals on the components of a judgment and make them more sensitive to information. An experiment with 101 experienced auditors shows that LM decomposition leads auditors to be less concerned about high-risk fraud schemes relative to auditors who make holistic risk assessments. Our analyses also show that, relative to t...
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作者：Bhattacharya, Nilabhra; Cho, Young Jun; Kim, Jae B.
作者单位：Southern Methodist University; Singapore Management University; Lehigh University
摘要：We investigate how XBRL adoption affects smaller institutions' access to financial statement information relative to their larger counterparts. We examine three aspects of trading responsiveness: abnormal trading volume, response speed to 10-K information, and decision to trade immediately following the 10-K filing. With regard to all three aspects of trading responsiveness, we find that small institutions' responsiveness to 10-K news increases significantly more relative to the change experie...
