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作者：Cantrell, Brett W.; McInnis, John M.; Yust, Christopher G.
作者单位：University of Mississippi; University of Texas System; University of Texas Austin
摘要：Standard-setters and many investors argue that loan fair values provide more useful information about credit losses than historical cost information, while bankers and others generally disagree. We examine the ability of reported loan fair values to predict credit losses relative to the ability of net historical costs currently recognized under U.S. GAAP. Our analysis is important because credit losses in the banking sector can have severe and widespread economic effects, as the recent financi...
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作者：Bartov, Eli; Mohanram, Partha S.
作者单位：New York University; University of Toronto
摘要：Does the placement of a line item in the income statement matter to investors? The passage of Statement of Financial Accounting Standards (SFAS) No. 145 (Financial Accounting Standards Board [FASB] 2002) affords a quasi-experimental setting to answer this question, because pre-SFAS No. 145, gains/losses from early debt extinguishments were reported below the line, while post-SFAS No. 145, they were reported above the line. After controlling for other identified changes that occur during our sa...
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作者：Laux, Volker
作者单位：University of Texas System; University of Texas Austin
摘要：This paper studies the optimal design of long-term executive pay plans when boards of directors use accounting information for investment decision-making and executives can take costly actions to manipulate this information. The model predicts that a shift to more convex executive pay plans, such as equity plans that rely more on options and less on stock, is associated with higher levels of manipulation, lower reporting quality, and less efficient investment. When designing the optimal contra...
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作者：Beck, Paul J.; Lisowsky, Petro
作者单位：University of Illinois System; University of Illinois Urbana-Champaign
摘要：This study examines the empirical relation between voluntary participation in the Internal Revenue Service's (IRS) Compliance Assurance Process (CAP) audit program, and tax uncertainty disclosed in financial statements pursuant to Financial Interpretation No. 48 (FIN 48). Based on the findings of prior analytical and empirical research, we formulate and test hypotheses about the likelihood of voluntary CAP participation and the resulting effect on FIN 48 tax reserves. We find that firms with m...
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作者：Kim, Yongtae; Park, Myung Seok
作者单位：Santa Clara University; Virginia Commonwealth University; Sungkyunkwan University (SKKU)
摘要：In this study, we examine the effect of clients' real activities manipulation (RAM) on auditors' client-retention decisions. We find that, with the exception of RAM through overproduction, clients' opportunistic operating decisions are positively associated with the likelihood of auditor resignations. We also provide evidence that auditors are especially sensitive to clients' RAM to just meet or beat earnings benchmarks in their client-retention decisions. In addition, we find that clients who...
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作者：Bonner, Sarah E.; Clor-Proell, Shana M.; Koonce, Lisa
作者单位：University of Southern California; Texas Christian University; University of Texas System; University of Texas Austin
摘要：Current financial reporting guidance allows managers flexibility as to whether to disaggregate income statement items. Such flexibility is problematic if managers prefer to aggregate in some situations and disaggregate in others because we conjecture that investors' evaluations of firms will predictably differ depending on whether performance information is shown in an aggregated or disaggregated fashion. We conduct a series of related experiments within the context of compound financial instr...
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作者：Hong, Hyun A.; Hung, Mingyi; Lobo, Gerald J.
作者单位：University of California System; University of California Riverside; Hong Kong University of Science & Technology; University of Southern California; University of Houston System; University of Houston
摘要：This study examines the impact of mandatory IFRS adoption on IPO underpricing and the relative amount of IPO capital raised in foreign markets. Using a difference-in-differences design, we find a decrease in IPO underpricing and an increase in the relative proceeds from foreign markets following mandatory IFRS adoption. We also find that mandatory IFRS adoption has a greater impact on IPO underpricing and relative foreign proceeds for firms in countries with a larger number of accounting chang...
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作者：Yu, Gwen; Wahid, Aida Sijamic
作者单位：Harvard University; University of Toronto
摘要：Do differences in countries' accounting standards affect global investment decisions? We explore this question by examining how accounting distance, the difference in the accounting standards used in the investor's and the investee's countries, affects the asset allocation decisions of global mutual funds. We find that investors tend to underweight investees with greater accounting distance. Using the mandatory adoption of International Financial Reporting Standards (IFRS) as an event that cha...
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作者：Indjejikian, Raffi J.; Matejka, Michal; Merchant, Kenneth A.; Van der Stede, Wim A.
作者单位：University of Michigan System; University of Michigan; Arizona State University; Arizona State University-Tempe; University of Southern California; University of London; London School Economics & Political Science
摘要：We examine the extent to which firms use past performance as a basis for setting earnings targets in their bonus plans and assess the implications of such targets for managerial incentives. We find that high-profitability firms commonly decrease earnings targets when their managers fail to meet prior-year targets but rarely increase targets. Conversely, we find that low-profitability firms commonly increase earnings targets when their managers meet or exceed prior-year targets but rarely decre...
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作者：Blankespoor, Elizabeth; Miller, Gregory S.; White, Hal D.
作者单位：Stanford University; University of Michigan System; University of Michigan
摘要：Firm disclosures often reach only a portion of investors, which results in information asymmetry among investors and, therefore, lower market liquidity. This issue is particularly salient for firms that are not highly visible, as they tend not to receive broad news dissemination via traditional intermediaries, such as the press. This paper examines whether firms can reduce information asymmetry by more broadly disseminating their news. To isolate the impact of dissemination, we focus our analy...
