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作者：Luo, Shuqing; Nagarajan, Nandu J.
作者单位：National University of Singapore; University of Texas System; University of Texas Arlington
摘要：This study examines the antecedents and consequences of analysts choosing to become supply chain analysts (i.e., analysts following both a supplier and its major customer). We find that information complementarities between firms in the same supply chain, between a supplier firm and its industry peer firms, and between the supplier's major customer and other firms in analysts' portfolio affect their supply chain specialization decision. The potential revenues supplier firms generate for analys...
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作者：Corona, Carlos; Nan, Lin; Zhang, Gaoqing
作者单位：Carnegie Mellon University; Purdue University System; Purdue University; University of Minnesota System; University of Minnesota Twin Cities
摘要：We study the interaction between interbank competition and accounting information quality and their effects on banks' risk-taking behavior. We identify an endogenous false-alarm cost that banks incur when forced to sell assets to meet capital requirements. We find that when the interbank competition is less intense, an improvement in the quality of accounting information encourages banks to take more risk. Keeping the banks' investments in loans constant, the provision of high-quality accounti...
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作者：Bova, Francesco; Kolev, Kalin; Thomas, Jacob K.; Zhang, X. Frank
作者单位：University of Toronto; Yale University
摘要：Prior research documents a negative link between risk and executive holding of stock, but a corresponding positive link for options. We find a similar negative relation for non-executive holding of stock. Our finding is consistent with the view that non-executives not only face significant incentives to reduce risk when they hold stock, but they are also able to affect corporate risk. While endogeneity cannot be ruled out fully, the results of a battery of tests suggest that it plays a limited...
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作者：Jayaraman, Sudarshan; Milbourn, Todd
作者单位：Washington University (WUSTL)
摘要：Prior studies find inconsistent evidence regarding the effect of CEO equity incentives on financial misreporting. We argue that this inconsistency stems from not considering detection mechanisms that mitigate the effect of equity incentives on misreporting by limiting the ability of managers to carry out such manipulative activities. Using auditor industry expertise as one such detection mechanism, we document that CEO equity incentives are positively associated with misreporting only in subsa...
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作者：Dong, Bei; Li, Edward Xuejun; Ramesh, K.; Shen, Min
作者单位：State University System of Florida; University of South Florida; City University of New York (CUNY) System; Baruch College (CUNY); Rice University
摘要：This study examines the unintended effects of a pre-Reg FD practice that gave a broad group of sophisticated market participants 15-minute earlier access to all corporate press releases than the general public. We find that roughly one-eighth of the price discovery to earnings announcements issued during regular trading hours was due to privileged access to information in earnings press releases, with the 15-minute priority dissemination contributing to just over 50 percent of price discovery ...
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作者：Swanquist, Quinn T.; Whited, Robert L.
作者单位：University System of Georgia; Georgia State University; University of Massachusetts System; University of Massachusetts Amherst
摘要：This study investigates whether the market for audit clients penalizes auditors following association with low-quality audits. Specifically, we examine whether audit offices experience a loss in local market share following client restatements. We document that the frequency of restatement announcements within an office-year (contamination'') is inversely related to subsequent year-over-year change in local market share. Further analysis indicates that restatements impair the office's ability ...
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作者：Chen, Ting; Martin, Xiumin; Mashruwala, Christina A.; Mashruwala, Shamin D.
作者单位：City University of New York (CUNY) System; Baruch College (CUNY); Washington University (WUSTL); University of Alberta
摘要：We investigate whether multiemployer defined-benefit pension plan (MEPP) underfunding is priced by shareholders and creditors. Prior to the FASB's new MEPP standard (effective December 2011), when the disclosures on such plans were sparse, we find evidence (some evidence) that our estimate of a firm's share of MEPP underfunding is credit (value) relevant. We also find some evidence that a proxy for the funded status of a firm's MEPPs is incrementally value relevant over and above the firm's ca...
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作者：Bowlin, Kendall O.; Hobson, Jessen L.; Piercey, M. David
作者单位：University of Mississippi; University of Illinois System; University of Illinois Urbana-Champaign; University of Massachusetts System; University of Massachusetts Amherst
摘要：We examine whether the effect of mandatory auditor rotation on audit quality depends on the mental frame auditors adopt in evaluating management representations. In practice, auditors can alternately frame their assessments of management representations in terms of their potential dishonesty (what we term skepticism) or potential honesty. Using psychology theory and a laboratory experiment, we predict and find that mandatory rotation improves audit quality when an auditor takes an honesty fram...
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作者：Lee, Charles M. C.; Li, Kevin K.; Zhang, Ran
作者单位：Stanford University; University of Toronto; Peking University
摘要：We examine the financial health and performance of reverse mergers (RMs) that became active on U.S. stock markets between 2001 and 2010, particularly those from China (around 85 percent of all foreign RMs). As a group, RMs are early-stage companies that typically trade over the counter. However, Chinese RMs (CRMs) tend to be more mature and less speculative than either their U.S. counterparts or a group of exchange-industry-size-matched firms. As a group, CRMs outperformed their matched peers ...
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作者：Donovan, John; Frankel, Richard M.; Martin, Xiumin
作者单位：Washington University (WUSTL)
摘要：We examine the relation between accounting conservatism and creditor recovery rates for firms in default. We also test the link between conservatism and the length of bankruptcy resolutions. We find that creditors of firms with more conservative accounting before default have significantly higher recovery rates, and that this positive relation is more pronounced for default firms that violated covenants before the default. We also find that conservative firms have higher asset productivity, sh...
