-
作者：Bills, Kenneth L.; Lisic, Ling Lei; Seidel, Timothy A.
作者单位：University of Arkansas System; University of Arkansas Fayetteville; Virginia Polytechnic Institute & State University; Brigham Young University
摘要：In this paper, we examine how CEO succession and succession planning affect perceptions of financial reporting risk among stakeholders who are responsible for and oversee firms' financial reporting (e.g., auditors, management, and audit committees). Management succession introduces uncertainty about firms' future operations, financial policies, and potential motivation for earnings management, which we predict elevates the perceived risk of financial reporting improprieties. Consistent with th...
-
作者：Bonsall, Samuel B.; Koharki, Kevin; Neamtiu, Monica
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; Washington University (WUSTL); City University of New York (CUNY) System; Baruch College (CUNY)
摘要：This study investigates whether and when differences in the credit rating agencies' methodologies result in differences in rating properties. In particular, this study focuses on differences in information processing constraints between a rating agency that utilizes qualitative analysis and direct access to borrowers' management in its rating process (Standard & Poor's) compared to one that does not (Egan Jones Ratings Company) and how these differences affect rating quality. We find that as i...
-
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...
-
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...
-
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：deHaan, Ed
作者单位：University of Washington; University of Washington Seattle
摘要：Credit ratings on many financial instruments failed to accurately portray default risk before the global financial crisis. I find no decline in the performance of corporate credit ratings during or after the crisis, indicating that the failures of ratings on financial instruments were due to conditions unique to the rating agencies' financial instruments divisions. Rather, the preponderance of tests indicate that corporate credit rating performance improves after the crisis, consistent with th...
-
作者：Harvey, Patrick J.
作者单位：Chinese University of Hong Kong
-
作者：Chi, Sabrina S.; Shanthikumar, Devin M.
作者单位：Texas State University System; Texas State University San Marcos; University of California System; University of California Irvine
摘要：We examine the impact of distance on internet search, and the effect of the local bias'' in search on the stock market response around earnings announcements. We find significant local bias in search behavior. Motivated by theories explaining local bias, local information advantage, and familiarity bias, we predict and find that firms with higher local bias in search experience higher bid-ask spreads, lower trading volumes, and lower earnings response coefficients at the time of earnings annou...
-
作者：Commerford, Benjamin P.; Hatfield, Richard C.; Houston, Richard W.; Mullis, Curtis
作者单位：University of Kentucky; University of Alabama System; University of Alabama Tuscaloosa; University System of Georgia; Georgia State University
摘要：In this study, we examine how information foraging by auditors affects audit evidence collection in two distinct contexts, and show how a small change to audit methodology mitigates the potentially harmful effects of foraging. Information Foraging Theory explains how, while navigating an information environment, individuals learn to acquire information through personally experiencing the costs incurred and the values obtained from information. Consistent with the theory, we find that auditors ...
