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作者：Biddle, Gary C.
作者单位：University of Hong Kong
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作者：Patatoukas, Panos N.; Thomas, Jacob K.
作者单位：University of California System; University of California Berkeley; Yale University
摘要：Basu (1997) proposes a measure of financial reporting conservatism based on asymmetry in the conditional earnings/returns relation. Patatoukas and Thomas (2011) show upward bias in this measure, because a placebo-lagged earnings-also exhibits similar asymmetry. Ball, Kothari, and Nikolaev (2013a) and Collins, Hribar, and Tian (2014) propose alternative explanations for the bias and offer revised measures to overcome the bias. However, we find that both revised measures remain substantially upw...
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作者：Ryan, Stephen G.; Tucker, Jennifer Wu; Zhou, Ying
作者单位：New York University; State University System of Florida; University of Florida; University of Connecticut
摘要：Securitizations are complex and opaque transactions. We hypothesize that bank insiders trade on private information about banks': (1) securitization-related recourse risks, (2) not-yet-reported current-quarter securitization income, and (3) securitization-based business model sustainability. We provide evidence that proxies for each of these types of insider information are positively associated with insider trading. Specifically, we find that net insider sales in the 2001Q2 -2007Q2 pre-financ...
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作者：Newton, Nathan J.; Persellin, Julie S.; Wang, Dechun; Wilkins, Michael S.
作者单位：University of Missouri System; University of Missouri Columbia; Trinity University; Texas A&M University System; Texas A&M University College Station
摘要：This study examines the extent to which audit clients successfully engage in internal control opinion shopping activities and whether audit market competition appears to facilitate those activities. Regulators have long been concerned about the impact of both audit market competition and opinion shopping on audit quality. We adopt the framework developed in Lennox (2000) to construct a proxy to measure the tendency that clients engage in internal control opinion shopping activities. Our empiri...
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作者：Gong, Qihui; Li, Oliver Zhen; Lin, Yupeng; Wu, Liansheng
作者单位：Zhejiang University; National University of Singapore; City University of Hong Kong; Peking University
摘要：We examine efficiency improvement associated with audit firm mergers. Our analysis is made possible by a unique dataset of audit hours in China. We find a significant reduction in audit hours, unaccompanied by a deterioration in audit quality, of merged audit firms. Further, we find a larger reduction in audit hours when acquirers are Chinese domestic Big 10 audit firms and when client firms are more complex. These results are consistent with the notion of economies of scale arising from horiz...
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作者：Christensen, Dane M.
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
摘要：I investigate whether corporate accountability reporting helps protect firm value. Specifically, I examine (1) whether corporate accountability reporting helps firms prevent the occurrence of high -profile misconduct (e.g., bribery, kickbacks, discrimination), and (2) whether prior corporate accountability reporting reduces the negative stock price reaction when high-profile misconduct does occur. Using multiple methods to address self-selection, I find that, on average, firms that report on t...
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作者：Jayaraman, Sudarshan; Kothari, S. P.
作者单位：University of Rochester; Massachusetts Institute of Technology (MIT)
摘要：We predict that access to cross-border financing by the industrial sector reduces firms' reliance on domestic banks, thereby leading to lower rents for banks and greater competition in the domestic banking sector. We also predict that banks take on more risk to offset these lost rents and remain competitive. Using mandatory adoption of International Financial Reporting Standards (IFRS) to identify variation in cross -border financing, we find evidence consistent with our hypotheses. Additional...
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作者：Biddle, Gary C.
作者单位：University of Hong Kong
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作者：Schroeder, Joseph H.
作者单位：Indiana University System; Indiana University Bloomington
摘要：This study examines the role of the external audit in management's decision about the amount of GAAP financial statement information to disclose in the annual earnings announcement. The earnings announcement is a key disclosure provided by public companies. Yet, there is no requirement that earnings announcements contain audited GAAP numbers; in fact, recent trends indicate that a majority of companies release earnings before the completion of year-end audit fieldwork. I predict and find that ...
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作者：Bens, Daniel A.; Cheng, Mei; Neamtiu, Monica
作者单位：INSEAD Business School; University of Arizona; City University of New York (CUNY) System; Baruch College (CUNY)
摘要：We investigate the role played by the Securities and Exchange Commission (SEC) in monitoring fair value disclosures in regulatory filings. Specifically, we assess whether SEC action via the issuance of fair value comment letters to registrants is followed by reductions in uncertainty about the firms' fair value estimates. We hypothesize that registrants that receive a comment letter focusing on their fair value disclosure policies experience reductions in investor uncertainty regarding their f...
