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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：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：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：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：Erkens, David H.; Subramanyam, K. R.; Zhang, Jieying
作者单位：University of Southern California; Indian School of Business (ISB); University of Texas System; University of Texas Dallas
摘要：We examine the effect of lender monitoring through board representation, which we label affiliated banker on board (AFB) on conservative accounting. We hypothesize that monitoring reduces lenders' demand for conservatism-facilitated control transfers through debt covenants by reducing the information asymmetry that underlies the agency problem of debt. Consistent with our hypothesis, we find that AFB firms have markedly lower conservative accounting than non-AFB firms. This result is robust to...
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作者：Lu, Hai; Wang, Kevin Q.; Wang, Xiaolu
作者单位：University of Toronto; Iowa State University
摘要：Motivated by investor disagreement and corporate disclosure literatures, we examine how stock price shocks affect future stock returns. We find that both large short-term price drops and hikes are followed by negative abnormal returns over the subsequent year, consistent with the conjecture that price shocks are useful indicators of intertemporal spikes in investor disagreement and investor opinion converges gradually. The asymmetric drifts involve return continuation for negative price shocks...
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作者：Grabner, Isabella
作者单位：Maastricht University
摘要：I empirically investigate the impact of an organization's creativity dependency on the design of its incentive system. In firms for which the primary source of value creation is the creativity of core employees, the designs of incentive systems are particularly challenging. The nature of creative work constrains the feasibility of extrinsic incentives, but at the same time creates a need for them. Accordingly, there is concern that the use of incentives renders people not creative enough, but ...
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作者：Vermeer, Thomas E.; Edmonds, Christopher T.; Asthana, Sharad C.
作者单位：University of Delaware; University of Alabama System; University of Alabama Birmingham; University of Texas System; University of Texas at San Antonio
摘要：Although recent academic studies on nonprofits have documented aggressive accounting behavior, these studies have primarily examined the sector in isolation and have not reached definitive conclusions regarding the relative aggressiveness of the nonprofit and for-profit sectors. Using actuarial assumptions for defined benefit (DB) pension plans as a proxy for discretionary accounting choices, we examine whether nonprofit managers respond through their actuarial choices to incentives to manage ...
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作者：Goex, Robert F.
作者单位：University of Zurich
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作者：Bowen, Robert M.; Rajgopal, Shivaram; Venkatachalam, Mohan
作者单位：University of Washington; University of Washington Seattle; University of San Diego; Emory University; Duke University
摘要：We examine (1) whether the accounting, governance, and investing practices of Berkshire Hathaway investees are consistent with Warren Buffett's public statements on what constitutes good accounting, governance, and investing practices and (2) whether these practices are associated with Berkshire's initial selection or Buffett's subsequent influence. Compared to control firms, we find that Berkshire investees are highly likely to follow Buffett's investment philosophy, somewhat likely to follow...
