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作者：Khan, Urooj; Li, Bin; Rajgopal, Shivaram; Venkatachalam, Mohan
作者单位：Columbia University; University of Texas System; University of Texas Dallas; Duke University
摘要：We examine the cost-effectiveness, from the shareholders' perspective, of the accounting standards issued by the FASB during 1973-2009. We evaluate (1) the stock market reactions of firms affected by the standards surrounding events that changed the standard's probability of issuance; and (2) whether the market reactions are related, in the cross-section, to agency problems, information asymmetry, proprietary costs, contracting costs, and changes in estimation risk. The average standard is a n...
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作者：Acito, Andrew A.; Hogan, Chris E.; Mergenthaler, Richard D.
作者单位：Michigan State University; University of Arizona
摘要：We investigate whether PCAOB-identified audit deficiencies lead to higher audit fees or turnover likelihood for clients of Big 4 auditors. To examine this, we identify areas of GAAP related to PCAOB deficiencies for each auditor. We then use textual analysis to identify how important the deficiencies are to clients to measure each client's exposure to deficient auditing. We find that this measure positively relates to audit fees and that this association is moderated by client bargaining power...
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作者：Bhattacharjee, Sudip; Brown, J. Owen
作者单位：Virginia Polytechnic Institute & State University; Baylor University
摘要：Concerns over ''revolving door'' practices of companies hiring directly from their external auditor led to a Sarbanes-Oxley Act provision mandating a one-year cooling-off period before such hires can occur. Yet little is known as to whether these alumni affiliations, still prevalent today, actually impair audit quality. Drawing on Social Identity Theory, we conduct an experiment to examine whether auditors experience heightened identification with an alumni-affiliated client manager and, if so...
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作者：Cassar, Gavin J.; Gerakos, Joseph J.; Green, Jeremiah R.; Hand, John R. M.; Neal, Matthew
作者单位：INSEAD Business School; Dartmouth College; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; University of North Carolina; University of North Carolina Chapel Hill
摘要：Using a dataset of 3,234 letters sent by 434 hedge funds to their investors during 1995-2011, we study what motivates hedge fund managers to make voluntary disclosures. Contrary to the hedge fund industry's reputation for opacity, we observe that managers provide their investors with an array of quantitative and qualitative information about fund returns, risk exposures, holdings, benchmarks, performance attribution, and future prospects. We find that the tensions between the agency costs face...
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作者：Baginski, Stephen P.; Campbell, John L.; Hinson, Lisa A.; Koo, David S.
作者单位：University System of Georgia; University of Georgia; State University System of Florida; University of Florida; University of Illinois System; University of Illinois Urbana-Champaign
摘要：Theory argues that career concerns (i.e., concerns about the impact of current performance on contemporaneous and future compensation) encourage managers to withhold bad news disclosure. However, empirical evidence regarding the extent to which a manager's career concerns are associated with a delay in bad news disclosure is limited. Across multiple proxies for career concerns, we find that the extent to which managers delay bad news is positively associated with their level of career concerns...
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作者：Heinle, Mirko S.; Smith, Kevin C.; Verrecchia, Robert E.
作者单位：University of Pennsylvania
摘要：While researchers and practitioners alike estimate firms' exposures to systematic risk factors, the disclosure literature typically assumes that exposures are common knowledge. We develop a model where the firm's exposure to a factor is unknown, and analyze the effects of factor-exposure uncertainty on share price and the effects of disclosure about the exposure. We find that: (1) factor-exposure uncertainty introduces skewness and excess kurtosis in the cash flow distribution relative to the ...
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作者：Singer, Zvi; Zhang, Jing
作者单位：Universite de Montreal; HEC Montreal; University of Alabama System; University of Alabama Huntsville
摘要：Using the timeliness of misstatement discovery as a proxy for audit quality, we examine the association between audit firm tenure and audit quality in a setting that alleviates the endogeneity problem endemic to this line of research. We find that longer audit firm tenure leads to less timely discovery and correction of misstatements, which is consistent with a negative effect of long auditor tenure on audit quality. In addition, using the non-voluntary auditor change following the demise of A...
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作者：Evans, John Harry, III; Gao, Zhan; Hwang, Yuhchang; Wu, Wan-Ting
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh; Lancaster University; China Europe International Business School; University of Massachusetts System; University of Massachusetts Boston
摘要：This paper examines the length of time over which CEO performance is evaluated (the ''performance period'') in CEO performance-based equity awards (PBEAs). Departing from the primary emphasis of agency theory on moral hazard problems, we develop a model in which short performance periods are instrumental in sorting CEO talents. The model predicts that short performance periods are preferred when CEOs have low expected productivity or valuable alternative employment opportunities, and when firm...
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作者：Amiram, Dan; Kalay, Alon; Kalay, Avner; Ozel, N. Bugra
作者单位：Columbia University; Tel Aviv University; Utah System of Higher Education; University of Utah; University of Texas System; University of Texas Dallas
摘要：We examine the role of the coupon choice in bond contracts as a signaling mechanism in the presence of information asymmetry between borrowers and lenders about the credit quality of the borrower. Prior literature focuses on the use of maturity as a signaling mechanism. We conjecture that the coupon is a more effective signaling mechanism. We exploit the enactment of Regulation Fair Disclosure (RegFD) as an exogenous shock to the level of information asymmetry, and employ both bond- and equity...
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作者：Loftus, Serena; Tanlu, Lloyd J.
作者单位：Tulane University; Northeastern University
摘要：This study examines how the use of causal language in conveying relative performance feedback impacts subsequent task performance. Research in linguistics has shown that causal language, defined as language reflecting the search for reasons (commonly expressed through words such as because'' and thus''), impacts how recipients process received information. We use a laboratory experiment to show that causal language has a differential effect when used in negative versus positive feedback. In th...
