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作者：Ayers, Benjamin C.; Schwab, Casey M.; Utke, Steven
作者单位：University System of Georgia; University of Georgia
摘要：We develop estimates of a firm's foreign earnings designated as permanently reinvested (PRE) and the unrecorded deferred tax liability (TAX) associated with PRE that are independent of whether a firm explicitly discloses this information. We then investigate firms' noncompliance with Accounting Standards Codification (ASC) 740 provisions that require financial statement disclosure of PRE and either the tax associated with PRE or a statement that calculating the tax is not practicable. We find ...
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作者：DeFond, Mark L.; Hung, Mingyi; Li, Siqi; Li, Yinghua
作者单位：University of Southern California; Hong Kong University of Science & Technology; Santa Clara University; Arizona State University; Arizona State University-Tempe
摘要：We test whether mandatory IFRS adoption affects firm-level crash risk, defined as the frequency of extreme negative stock returns. We separately analyze nonfinancial firms and financial firms because IFRS is likely to affect their crash risk differently. We find that IFRS adoption decreases crash risk among nonfinancial firms, especially among firms in poor information environments and in countries where IFRS adoption results in larger and more credible changes to local GAAP. In contrast, IFRS...
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作者：Minnis, Michael
作者单位：University of Chicago
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作者：Tan, Hun-Tong; Wang, Elaine Ying; Zhou, Bo
作者单位：Nanyang Technological University; University of Massachusetts System; University of Massachusetts Amherst; Shanghai University of Finance & Economics
摘要：We conduct two experiments to investigate how readability (high versus low) and benchmark performance consistency (consistent versus inconsistent) influence investors' judgments. Using prior management guidance and year-ago quarter performance as two benchmarks against which to assess actual earnings performance, we manipulate whether the valence of guidance performance (positive or negative) and the valence of trend performance (positive or negative) are consistent with each other. We also ma...
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作者：Bauer, Tim D.
作者单位：University of Illinois System; University of Illinois Urbana-Champaign
摘要：Considerable recent audit regulation, both proposed and mandated, and accounting research has focused on auditor independence threats arising over long auditor tenure. Psychology research, however, suggests independence threats also likely arise when auditor tenure is short because auditors can quickly develop a strong client identity, raising questions about the effectiveness of mandatory audit partner or firm rotation to address independence concerns. Relying on Social Identity Theory, I exa...
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作者：Chen, Clara Xiaoling; Trotman, Ken T.; Zhou, Flora (Hailan)
作者单位：University of Illinois System; University of Illinois Urbana-Champaign; University of New South Wales Sydney; University System of Georgia; Georgia State University
摘要：In this study, we examine whether interacting hierarchical teams outperform nominal hierarchical teams in electronic brainstorming. Our hierarchical audit teams were composed of 111 managers and seniors from two Big 4 accounting firms. We compare fraud brainstorming outcomes between nominal and interacting teams for two tasks of varying complexity: a simpler task of fraud risk factor identification and a more complex task of fraud hypothesis generation. We find that nominal teams generate a si...
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作者：Chen, Lucy Huajing; Khurana, Inder K.
作者单位：Villanova University; University of Missouri System; University of Missouri Columbia
摘要：This paper examines shareholder wealth effects in U.S. and home-country markets relating to the Securities and Exchange Commission's (SEC) decision to eliminate the Form 20-F reconciliation. During the period of examined events, we find positive cumulative abnormal returns for the treatment sample of U.S. cross-listed firms that prepare financial statements under International Financial Reporting Standards (IFRS), but no such effects for our control sample comprising cross-listed non-IFRS, U.S...
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作者：Chan, Lilian H.; Chen, Kevin C. W.; Chen, Tai Yuan; Yu, Yangxin
作者单位：University of Hong Kong; Hong Kong University of Science & Technology; City University of Hong Kong
摘要：To deter financial misstatements, many companies have recently adopted compensation recovery policies commonly known as clawbacks - that authorize the board to recoup compensation paid to executives based on misstated financial reports. Clawbacks have been shown to reduce financial misstatements and increase investors' confidence on earnings information. We show that the benefits come with an unintended consequence of certain firms substituting for accruals management with real transactions ma...
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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：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...
