-
作者：Koch, Christopher; Salterio, Steven E.
作者单位：Johannes Gutenberg University of Mainz; Queens University - Canada
摘要：This paper examines how auditors' judgments about accounting policies may differ when experiencing different levels of affinity for client management and facing different levels of pressure from client management. The theory of motivated reasoning is employed to analyze the effects of these two factors that should lead individual auditors to adopt as a directional goal the acceptance of client management's aggressive accounting. Accordingly, we predict and find that auditors experiencing great...
-
作者：Towery, Erin M.
作者单位：University System of Georgia; University of Georgia
摘要：This study exploits the implementation of IRS Schedule UTP to examine how linking tax return disclosures to financial reporting for income taxes affects firms' reporting decisions. Using confidential tax return data and public financial statement data, I find that after imposition of Schedule UTP reporting requirements, firms report lower financial reporting reserves for uncertain income tax positions, but do not claim fewer income tax benefits on their federal tax returns. The reduction in re...
-
作者：He, Xianjie; Pittman, Jeffrey A.; Rui, Oliver M.; Wu, Donghui
作者单位：Shanghai University of Finance & Economics; Memorial University Newfoundland; China Europe International Business School; Chinese University of Hong Kong
摘要：We examine whether social ties between engagement auditors and audit committee members shape audit outcomes. Although these social ties can facilitate information transfer and help auditors alleviate management pressure to waive correction of detected misstatements, close interpersonal relations can undermine auditors' monitoring of the financial reporting process. We measure social ties by alma mater connections, professor-student bonding, and employment affiliation, and audit quality by the ...
-
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 ...
-
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...
-
作者：Wilde, Jaron H.
作者单位：University of Iowa
摘要：U.S. laws provide explicit whistleblower protections and direct regulators to adopt ambitious programs to reward whistleblowing. However, there is limited evidence on whether employee whistleblowing deters financial misreporting and tax aggressiveness. Using a sample of employee whistleblower cases obtained from the U.S. government, I provide evidence that firms subject to whistleblowing allegations exhibit significant decreases in financial misreporting and tax aggressiveness, compared with c...
-
作者：Versano, Tsahi; Trueman, Brett
作者单位：Tel Aviv University; University of California System; University of California Los Angeles
摘要：This paper analyzes a manager's optimal expectations management strategy in a setting in which the manager provides forecast guidance to an analyst both privately and publicly. Conventional wisdom suggests that managers use private communications with analysts and public earnings forecasts interchangeably to guide analysts' earnings forecasts downward toward lower earnings targets. Our analysis shows that in markets with rational investors, private and public guidance play very different roles...
-
作者：Krishnan, Jagan; Krishnan, Jayanthi; Song, Hakjoon
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University; California State University System; California State University Dominguez Hills
摘要：We investigate the impact of the Public Company Accounting Oversight Board's (PCAOB) first-time inspections of foreign accounting firms by examining abnormal accruals around the inspection year, and the value relevance of accounting numbers around the inspection report date, for their U.S. cross-listed clients. We document lower abnormal accruals in the post-inspection period, and greater value relevance of accounting numbers in the post-report period for clients of the inspected auditors, com...
-
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：Akbas, Ferhat; Jiang, Chao; Koch, Paul D.
作者单位：University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital; University of South Carolina System; University of South Carolina Columbia; University of Kansas
摘要：This study shows that the recent trajectory of a firm's profits predicts future profitability and stock returns. The predictive information contained in the trend of profitability is not subsumed by the level of profitability, earnings momentum, or other well-known determinants of stock returns. The profit trend also predicts the earnings surprise one quarter later, and analyst forecast errors over the following 12 months, suggesting that sophisticated investors underreact to the information i...
