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作者：Srinivasan, Suraj; Wahid, Aida Sijamic; Yu, Gwen
作者单位：Harvard University; University of Toronto
摘要：We study the frequency of restatements by foreign firms listed on U.S. exchanges. We find that the restatement rate of U.S.-listed foreign firms is significantly lower than that of comparable U.S. firms and that the difference depends on the firm's home country characteristics. Foreign firms from countries with a weak rule of law are less likely to restate than are firms from strong rule of law countries. While the lower rate of restatements can represent an absence of errors, it can also indi...
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作者：Douthit, Jeremy D.; Stevens, Douglas E.
作者单位：University of Arizona; University System of Georgia; Georgia State University
摘要：Rankin, Schwartz, and Young (2008) find experimental evidence that manipulating whether the budget request of the subordinate requires a factual assertion has no effect on budgetary slack when the superior can reject the budget. This calls into question the role of honesty in participative budgeting settings. Using Rankin et al.'s (2008) manipulation to capture honesty effects, we examine the robustness of honesty effects on budget proposals when the superior has rejection authority in two exp...
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作者：Fanning, Kirsten; Agoglia, Christopher P.; Piercey, M. David
作者单位：University of Illinois System; University of Illinois Urbana-Champaign; University of Massachusetts System; University of Massachusetts Amherst
摘要：In recent years, regulators have considered several initiatives to lower the threshold for disclosing risks to investors. We examine two ways in which disclosing more risks can actually lower investors' perceptions of risk. Utilizing an experiment, we find evidence of two unintended consequences on different types of investors. First, we demonstrate that the addition of low-probability risks to a disclosure can dilute (rather than add to) more probable losses, leading certain investors to lowe...
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作者：Chen, Chih-Ying; Chen, Peter F.; Jin, Qinglu
作者单位：Singapore Management University; Hong Kong University of Science & Technology; Shanghai University of Finance & Economics
摘要：Prior studies show that equity value has convex relations with earnings and book value of equity, respectively, due to growth and adaptation options (Burgstahler and Dichev 1997a; Zhang 2000). However, these studies do not consider the role of institutions in affecting firms' ability to exercise growth and adaptation options. In this study, we investigate whether these convex relations vary with the degree of a country's economic freedom, which may influence the frictions and costs of exercisi...
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作者：Abernethy, Margaret A.; Kuang, Yu Flora; Qin, Bo
作者单位：University of Melbourne
摘要：We investigate whether CEO power influences a firm's decision to change its compensation system in response to regulatory and public pressure. In particular, we assess whether CEO power influences the choice of performance measures as a form of camouflage to minimize the impact of these reforms on their wealth. We examine one component of CEO pay, namely, the use of performance-vested stock option (PVSO) plans, and find that firms with powerful CEOs attach less challenging targets in the initi...
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作者：Libby, Robert; Tan, Hun-Tong; Hunton, James E.
作者单位：Cornell University; Nanyang Technological University; Bentley University; Maastricht University
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作者：Feng, Mei; Li, Chan; McVay, Sarah E.; Skaife, Hollis
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh; University of Washington; University of Washington Seattle; University of California System; University of California Davis
摘要：We investigate whether ineffective internal control over financial reporting has implications for firm operations by examining the association between inventory-related material weaknesses in internal control over financial reporting and firms' inventory management. We find that firms with inventory-related material weaknesses have systematically lower inventory turnover ratios and are more likely to report inventory impairments relative to firms with effective internal control over financial ...
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作者：Williams, Christopher D.
作者单位：University of Michigan System; University of Michigan
摘要：This study empirically examines the role of shocks to macro-uncertainty in shaping the responses of stock market participants to firm-specific earnings news. Specifically, I find that investors place greater weight on bad news following an increase in macro-uncertainty. By contrast, I find that investors place equal weight on both good and bad news following a decrease in macro-uncertainty. Furthermore, my findings show that these effects are more pronounced (1) for firms whose prior returns a...
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作者：Ke, Bin; Lennox, Clive S.; Xin, Qingquan
作者单位：Nanyang Technological University; Chongqing University
摘要：This study examines whether China's weak institutional environment results in lower-quality audits by the Big 4 firms. We find that the Big 4 assign their less experienced partners to companies that are listed only in China compared with clients cross-listed in Hong Kong. The Big 4 are less likely to issue modified audit reports, and they charge lower audit fees for clients that are listed only in China. Finally, companies listed only in China have larger signed abnormal accruals than do compa...
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作者：Chen, Yangyang; Gul, Ferdinand A.; Veeraraghavan, Madhu; Zolotoy, Leon
作者单位：Hong Kong Polytechnic University; Monash University; University of Melbourne
摘要：Using a large sample of U.S. firms spanning the period 2000-2010, we document a strong positive association between the sensitivity of CEO compensation portfolio to stock return volatility (vega) and audit fees. We also show that the positive association between vega and audit fees is weaker in the post-Sarbanes-Oxley Act (SOX) period. In supplementary tests, we show that the relation between vega and audit fees is stronger for firms with older CEOs and in firms where the CEO is also chairman ...
