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作者：Peterson, Kyle; Schmardebeck, Roy; Wilks, T. Jeffrey
作者单位：University of Oregon; University of Missouri System; University of Missouri Columbia; Brigham Young University
摘要：We specify measures of accounting consistency both across time and across firms based on the textual similarity of accounting policy footnotes disclosed in 10-K filings. We first examine how these measures relate to earnings quality. Accounting consistency over time is positively associated with a number of earnings quality proxies, including earnings persistence, predictability, accrual quality, and absolute discretionary accruals. We also find that lower consistency relative to other firms i...
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作者：DeFond, Mark L.
作者单位：University of Southern California
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作者：Kedia, Simi; Koh, Kevin; Rajgopal, Shivaram
作者单位：Rutgers University System; Rutgers University New Brunswick; Nanyang Technological University; Columbia University
摘要：We examine contagion in earnings management using 2,376 restatements announced during the years 1997-2008. Controlling for industry and firm characteristics, firms are more likely to begin managing earnings after the public announcement of a restatement by another firm in their industry or neighborhood. Such contagion is absent when the restating firm is disciplined by the SEC or class action lawsuits, suggesting deterrent effects of enforcement activity. Contagion among peers is observed (1) ...
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作者：Mueller, Maximilian A.; Riedl, Edward J.; Sellhorn, Thorsten
作者单位：WHU - Otto Beisheim School of Management; Boston University; University of Munich
摘要：This paper examines pricing differences across recognized and disclosed fair values. We build on prior literature by examining two theoretical causes of such differences: lower reliability of the disclosed information, and/or investors' higher related information processing costs. We examine European real estate firms reporting under International Financial Reporting Standards (IFRS), which require that fair values for investment properties, our sample firms' key operating asset, either be rec...
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作者：Backof, Ann G.
作者单位：University of Virginia
摘要：Audit workpapers play a key role in auditor negligence trials, yet little is known about how workpaper documentation affects jurors' decision making. I investigate how auditors' documentation of their consideration of the alternative accounting treatments and their risk-based audit approach influence jurors' negligence verdicts and damage awards. I find that documentation of their consideration of the accounting alternatives increases the likelihood that auditors are found negligent because it...
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作者：Young, Steven; Zeng, Yachang
作者单位：Lancaster University; Nanyang Technological University; Tilburg University
摘要：We examine the link between enhanced accounting comparability and the valuation performance of pricing multiples. Using the warranted multiple method proposed by Bhojraj and Lee (2002), we demonstrate how enhanced accounting comparability leads to better peer-based valuation performance. Empirical tests using firms from 15 European Union (EU) countries over the period 1997-2011 (with comparable peers selected from the entire cross-section of foreign firms) document significant improvement in v...
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作者：Holzhacker, Martin; Krishnan, Ranjani; Mahlendorf, Matthias D.
作者单位：Michigan State University; Frankfurt School Finance & Management
摘要：This paper extends prior literature on cost behavior by providing insights into how firms achieve changes to cost structure in response to two important risk drivers, i.e., demand uncertainty and financial risk. Using theory from labor economics, supply-chain management, and finance, we posit that demand uncertainty and financial risk influence cost management activities. Specifically, we argue that firms are likely to alter resource procurement choices to increase cost elasticity in response ...
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作者：Aobdia, Daniel; Lin, Chan-Jane; Petacchi, Reining
作者单位：Northwestern University; National Taiwan University; Massachusetts Institute of Technology (MIT)
摘要：This paper examines whether the identity of the individual audit partners provides informational value to capital market participants beyond the value provided by the identity of the audit firms. Using data from Taiwan, where firms are mandated to disclose the names of the engagement partners, we find a positive association between the partner's quality and the client firm's earnings response coefficient. We also find a positive market reaction when a firm replaces a lower quality partner with...
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作者：Patatoukas, Panos N.; Sloan, Richard G.; Zha, Jenny
作者单位：University of California System; University of California Berkeley
摘要：We identify a setting in which firms are required to disclose discounted cash flow (DCF) estimates relating to the value of their primary assets. ASC 932 (formerly SFAS No. 69) has mandated DCF disclosures for proved oil and gas reserves since 1982, and these reserves constitute the primary assets of oil and gas royalty trusts. For a hand-collected sample of oil and gas royalty trusts, we find that (1) the mandatory DCF disclosures are incrementally value-relevant over historical cost accounti...
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作者：Kerr, Jon N.; Ozel, N. Bugra
作者单位：City University of New York (CUNY) System; Baruch College (CUNY); University of Texas System; University of Texas Dallas
摘要：We empirically examine the joint predictions of the pecking order theory and the theory of time-varying asymmetric information regarding the timing of security offerings around information disclosures. We analyze loan originations and bond offerings around earnings announcements and compare them against equity offerings. In support of the theories' predictions, we find a positive association between the information sensitivity of securities and the likelihood of their issuance after earnings a...
