-
作者：Casas-Arce, Pablo; Martinez-Jerez, F. Asis; Narayanan, V. G.
作者单位：Arizona State University; Arizona State University-Tempe; University of Notre Dame; Harvard University
摘要：This paper analyzes the effects of forward-looking metrics on employee decision-making. We use data from a bank that started providing branch managers with the customer lifetime value (CLV)-an estimate of the future value of the customer relationship-of mortgage applicants. The data allow us to gauge the effects of enriching the employees' information set in an environment where explicit incentives and decision rights remained unchanged. On average, customer value increased 5 percent after the...
-
作者：Khan, Mozaffar; Srinivasan, Suraj; Tan, Liang
作者单位：Harvard University; University of Minnesota System; University of Minnesota Twin Cities; George Washington University
摘要：We provide new evidence on the agency theory of corporate tax avoidance (Slemrod 2004; Crocker and Slemrod 2005; Chen and Chu 2005) by showing that increases in institutional ownership are associated with increases in tax avoidance. Using the Russell index reconstitution setting to isolate exogenous shocks to institutional ownership, and a regression discontinuity design that facilitates sharper identification of treatment effects, we find a significant and discontinuous increase in tax avoida...
-
作者：Jennings, Jared; Lee, Joshua; Matsumoto, Dawn A.
作者单位：Washington University (WUSTL); University System of Georgia; University of Georgia; University of Washington; University of Washington Seattle
摘要：We examine how the co-location of firms in the same industry affects analysts' cost of gathering and processing information. We find that when the firms in an analyst's portfolio are located farther away from other firms in the same industry, the analyst's portfolio size is smaller and average forecast accuracy is lower. We further find that the additional costs that analysts incur to follow distant firms are amplified when earnings are more difficult to forecast. Last, we provide some evidenc...
-
作者：Ernstberger, Jurgen; Link, Benedikt; Stich, Michael; Vogler, Oliver
作者单位：Technical University of Munich; University of Cologne; LEDVANCE GmbH
摘要：This paper examines how mandatory quarterly reporting affects managers' business decisions in terms of real activities manipulations. For our analyses, we use the setting of the European Union, where the reporting frequency was increased with the introduction of a mandate to issue Interim Management Statements (IMSs) on a quarterly basis. Controlling for accrual-based earnings management, we find an increase in real activities manipulations for firms mandated to switch from semiannual to quart...
-
作者：Cannon, Nathan H.; Bedard, Jean C.
作者单位：Texas State University System; Texas State University San Marcos; Bentley University
摘要：Concern about effective auditing of fair value measurements (FVMs) has risen in recent decades. Building on prior interview-based and experimental research, we provide an engagement-level analysis of challenging FVMs, using quantitative and qualitative data on audit phases from risk assessment to booking adjustments. Challenging FVMs have high estimation uncertainty, high subjectivity, significant/complex assumptions, and multiple valuation techniques. Estimation uncertainty is associated with...
-
作者：Nessa, Michelle L.
作者单位：Michigan State University
摘要：This paper examines whether and to what extent repatriation tax costs constrain U.S. multinational companies' (MNCs) distributions to shareholders. During the 1987-2004 sample period, I find that repatriation tax costs decrease U.S. MNCs' dividend payments, and the economic magnitude of the effect is substantial. I do not find evidence that repatriation tax costs decrease U.S. MNCs' share repurchases, on average. I find cross-sectional variation in the effect of repatriation tax costs on share...
-
作者：Erickson, Devon; Hewitt, Max; Maines, Laureen A.
作者单位：Utah System of Higher Education; Utah State University; University of Arizona; Indiana University System; Indiana University Bloomington
摘要：A fundamental accounting question is whether investors perceive low risk when earnings are smooth relative to the volatility of operating cash flows. We conduct two experiments to examine this question. Absent additional information concerning the likelihood of earnings management, our first experiment finds that investors give managers the benefit of the doubt and perceive low risk when earnings are relatively smooth. Given this finding, our second experiment examines whether additional infor...
-
作者：Bird, Andrew; Karolyi, Stephen A.
作者单位：Carnegie Mellon University
摘要：We implement a regression discontinuity design to examine the effect of institutional ownership on tax avoidance. Positive shocks to institutional ownership around Russell index reconstitutions lead, on average, to significant decreases in effective tax rates (ETRs) and greater use of international tax planning using tax haven subsidiaries. These effects are smaller for firms with initially strong governance and high executive equity compensation, suggesting poor governance as an explanation f...
-
作者：Hsu, Charles; Novoselov, Kirill E.; Wang, Rencheng
作者单位：Hong Kong University of Science & Technology; Shanghai University of Finance & Economics; University of Melbourne
摘要：Overconfident CEOs are more willing to initiate investment projects that require experimentation, yet tend to defer responding to the bad news when the project is not performing as planned. Accounting conservatism accelerates the recognition of the bad news and its dissemination to gatekeepers, making it more likely that the CEO will acknowledge the problem earlier and start searching for solutions. Therefore, firms where both characteristics-CEO overconfidence and accounting conservatism-are ...
-
作者：Maksymov, Eldar M.; Nelson, Mark W.
作者单位：Arizona State University; Arizona State University-Tempe; Cornell University
摘要：We report the results of four experiments investigating the relationship between (1) the quality of an audit, (2) jurors' assessments of the standard of prudent care (SOC) against which audit quality is compared, and (3) jurors' negligence verdicts. Experiment 1 operationalizes audit quality by varying the sample size used in audit testing, and provides evidence that jurors anchor their assessment of SOC on audit quality, producing a competitive mediation'' in which audit quality reduces the p...
