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作者：Michaeli, Beatrice
作者单位：University of California System; University of California Los Angeles
摘要：This paper develops a Bayesian persuasion model that examines a manager's incentives to gather information when the manager can disseminate this information selectively to interested parties (users'') and when the objectives of the manager and the users are not perfectly aligned. The model predicts that if the manager can choose the subset of users to receive the information, then the manager may gather more precise information. The paper identifies conditions under which a regime that allows ...
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作者：Laurion, Henry; Lawrence, Alastair; Ryans, James P.
作者单位：University of California System; University of California Berkeley; University of London; London Business School
摘要：We investigate the effects of audit partner rotation among U.S. publicly listed firms, utilizing the fact that audit partners are periodically copied by name in public correspondence between issuers and the Securities and Exchange Commission. Relative to non-rotation firms, we find no evidence of a change in the frequency of misstatements following the partner rotation; however, there is an increase in the frequency of restatement discoveries and announcements. We also find an increase in defe...
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作者：Reid, Lauren C.; Carcello, Joseph V.
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh; University of Tennessee System; University of Tennessee Knoxville
摘要：The PCAOB recently considered implementing mandatory audit firm rotation in hopes of better aligning auditors' interests with investors' interests, suggesting that the PCAOB views long auditor tenure as problematic. However, the accounting profession argues that long tenure actually improves audit quality. This study provides insight into investors' views by evaluating the market's reaction to events related to the potential adoption of rotation that occurred between 2011 and 2013. The results...
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作者：Asay, H. Scott; Elliott, W. Brooke; Rennekamp, Kristina
作者单位：University of Iowa; University of Illinois System; University of Illinois Urbana-Champaign; Cornell University
摘要：Prior literature suggests that investors react less strongly to information in less readable disclosures. We extend this literature by considering how disclosure readability affects the sensitivity of investors' valuation judgments to the information contained in outside (i.e., non-firm) sources of information. Using an experiment, we present investors with a disclosure containing mixed news about the valence of firm performance, and this disclosure varies in readability. We find that investor...
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作者：Bae, Gil Soo; Choi, Seung Uk; Dhaliwal, Dan S.; Lamoreaux, Phillip T.
作者单位：Korea University; University of Arizona; Arizona State University; Arizona State University-Tempe
摘要：This study examines the relation between auditors and their clients' investment efficiency. We hypothesize and find that auditor characteristics that proxy for an auditor's knowledge and resources are associated with higher client investment efficiency, after controlling for the auditor's effect on financial reporting quality. This result is consistent with auditors providing informational advantages to their clients in a generalized investment setting. We find that this auditor effect is more...
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作者：Ebert, Michael; Simons, Dirk; Stecher, Jack D.
作者单位：University of Paderborn; University of Mannheim; Carnegie Mellon University
摘要：We study a disclosure decision for a firm's manager with many sources of private information. The presence of multiple numerical signals provides the manager with an opportunity to hide information via aggregation, presenting net amounts in order to show information in its best light. We show that this ability to aggregate fundamentally changes the nature of voluntary disclosure, due to the market's inability to verify that a report is free of strategic aggregation. We find that, in equilibriu...
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作者：Owens, Edward L.; Wu, Joanna Shuang; Zimmerman, Jerold
作者单位：Emory University; University of Rochester
摘要：Economics challenge the specification of discretionary accrual models. Since rent-seeking firms pursue differentiated business strategies, firms in the same industry experience idiosyncratic shocks due to heterogeneous economic fundamentals and hence have different accrual-generating processes. We present evidence that idiosyncratic shocks are widespread, propagate through multiple years of financial statements, and reduce accrual models' goodness of fit. This not only affects abnormal accrual...
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作者：Dutta, Sunil; Patatoukas, Panos N.
作者单位：University of California System; University of California Berkeley
摘要：Using a financial reporting and valuation model, we investigate the construct validity of Basu's (1997) asymmetric timeliness (AT) regression coefficient as a measure of conditional conservatism in corporate financial reporting. We predict that the AT coefficient will be positive even in the absence of conditional conservatism, and it will vary with non-accounting factors even if the degree of conditional conservatism is held constant. Our empirical analysis shows that AT coefficient estimates...
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作者：Guenther, David A.; Matsunaga, Steven R.; Williams, Brian M.
作者单位：University of Oregon; Indiana University System; Indiana University Bloomington
摘要：We test whether tax avoidance strategies are associated with greater firm risk. We find that low tax rates tend to be more persistent than high tax rates and that measures of tax avoidance commonly used in the literature are generally not associated with either future tax rate volatility or future overall firm risk. Our evidence suggests that, on average, corporate tax avoidance is accomplished using strategies that are persistent and do not increase firm risk. We also find that the volatility...
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作者：Joe, Jennifer R.; Vandervelde, Scott D.; Wu, Yi-Jing
作者单位：University of Delaware; University of South Carolina System; University of South Carolina Columbia; Texas Tech University System; Texas Tech University
摘要：Research documents significant management bias and opportunism around the discretionary inputs of audited complex estimates, including fair value measurements (FVMs), which raises questions about auditors' ability to test these estimates. We examine how the degree of quantification in client evidence and client control environment risk influence auditors' planned substantive testing of management's discretionary inputs to FVMs. We find that auditors allocate a lower proportion of effort to tes...
