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作者：Lennox, Clive S.; Wu, Xi; Zhang, Tianyu
作者单位：Nanyang Technological University; Central University of Finance & Economics; Chinese University of Hong Kong
摘要：Opponents of mandatory rotation argue that a change of partner is bad for audit quality, as it results in a loss of client-specific knowledge. On the other hand, proponents argue that a change of partner is beneficial, as it results in a positive peer review effect and a fresh perspective on the audit. We test the impact of mandatory partner rotation on audit quality using a unique dataset of audit adjustments in China. Our results suggest that mandatory rotation of engagement partners results...
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作者：Walker, Martin
作者单位：University of Manchester
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作者：Ball, Ray; Brown, Philip R.
作者单位：University of Chicago; University of New South Wales Sydney; University of Western Australia
摘要：This essay provides a retrospective view on our co-authored paper, Ball and Brown (1968). The retrospective was commissioned by Gregory B. Waymire, then President of the American Accounting Association. It describes how we both came to be Ph.D. students at The University of Chicago and set about researching the relation between earnings and share prices. It outlines the background against which we conducted the research, including the largely a priori accounting research literature at the time...
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作者：Cannon, James N.
作者单位：Iowa State University
摘要：This paper examines determinants of sticky cost behavior, costs that increase faster than they decrease as demand fluctuates. The majority of the literature infers that sticky costs arise because managers retain idle capacity as demand falls, but add capacity as demand grows. I use United States Air Transportation industry data to confirm that managers do retain idle capacity when demand falls. However, I also find that sticky costs arise because managers lower selling prices to utilize existi...
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作者：Gordon, Lawrence A.; Wilford, Amanda L.
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作者：Li, Bin; Rajgopal, Shivaram; Venkatachalam, Mohan
作者单位：University of Texas System; University of Texas Dallas; Emory University; Duke University
摘要：A growing literature investigates the association between stock return variation and several aspects of information and governance structures, in both a cross-country setting and a cross-firm setting within the U.S. Papers use either idiosyncratic stock return volatility (sigma(2)(e)) or R-2 as interchangeable measures of firm-specific return variation but report inconsistent results. An important reason for the differing interpretations is the assumption about whether lower R-2 (or higher sig...
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作者：Penman, Stephen H.; Zhu, Julie Lei
作者单位：Columbia University; Boston University; Shanghai Jiao Tong University
摘要：This paper investigates whether so-called anomalous returns predicted by accounting numbers reflect normal returns for risk or abnormal returns. It does so via a model showing how accounting numbers inform about normal returns if pricing were rational. The model equates expected returns to expectations of earnings and earnings growth, so that any variable that forecasts earnings and earnings growth also indicates the required return if the market prices those outcomes as risky. The empirical r...
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作者：Dewing, Ian; Georgiou, Omiros
作者单位：University of East Anglia; University of London; London School Economics & Political Science
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作者：Jans, Mieke; Alles, Michael G.; Vasarhelyi, Miklos A.
作者单位：Hasselt University; Rutgers University System; Rutgers University Newark; Rutgers University New Brunswick
摘要：There is a large body of accounting research literature examining the use of analytical procedures by auditors and proposing either new types of analytical procedures or more effective ways of implementing existing procedures. In this paper, we demonstrate using procurement data from a leading global bank the value added in an audit setting of a new type of analytical procedure: process mining of event logs. In particular, using process mining, we are able to identify numerous transactions tha...
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作者：Aranda, Carmen; Arellano, Javier; Davila, Antonio
作者单位：University of Navarra; University of Navarra; IESE Business School
摘要：Managers use a variety of information to set performance targets. Using data from 376 branches of a large travel retailer over five years, this study documents supervisors considering the relative performance of comparable units in target setting, which we term relative target setting (RTS). We find evidence of RTS after controlling for individual past performance in the form of ratcheting. Our findings also indicate that RTS partially shapes the use of other information on past performance. S...
