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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：Gordon, Lawrence A.; Wilford, Amanda L.
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作者：Christensen, Peter O.; Qin, Zhenjiang
作者单位：Aarhus University; Southwestern University of Finance & Economics - China
摘要：In an incomplete market with heterogeneous prior beliefs, we show that public information can have a substantial impact on the ex ante cost of capital, trading volume, and investor welfare. The Pareto efficient public information system is the system enjoying the maximum ex ante cost of capital and the maximum expected abnormal trading volume. Imperfect public information increases the gains-to-trade based on heterogeneously updated posterior beliefs. In an exchange economy, this leads to high...
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作者：Chen, Xia; Cheng, Qiang; Lo, Alvis K.
作者单位：Singapore Management University; Boston College
摘要：Prior research finds that the decline in the information content of earnings after restatement announcements is short-lived and the earnings response coefficient (ERC) bounces back after three quarters. We re-examine this issue using a more recent and comprehensive sample of restatements. We find that material restatement firms experience a significant decrease in the ERC over a prolonged period-close to three years after restatement announcements. In contrast, other restatement firms experien...
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作者：Albuquerque, Ana Maria
作者单位：Boston University; Universidade Catolica Portuguesa
摘要：The use of relative performance evaluation (RPE) in compensation contracts for CEOs at growth-option (GO) firms that operate in more volatile environments can provide insurance against common exogenous shocks and thus reduce the amount of risk that CEOs face. However, the implementation of RPE for high-GO firms can be impaired by these firms' inability to find a peer group that captures common risk exposure. This paper studies GO firms' reliance on RPE and finds that the use of RPE in CEO comp...
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作者：Elliott, W. Brooke; Jackson, Kevin E.; Peecher, Mark E.; White, Brian J.
作者单位：University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital; University of Texas System; University of Texas Austin
摘要：We provide theory and experimental evidence consistent with an unintended, causal relation between Corporate Social Responsibility (CSR) performance and investors' estimates of fundamental value that can be attenuated by investors' explicit assessment of CSR performance. Consistent with affect-as-information'' theory from psychology, we find that investors who are exposed to, but do not explicitly assess, CSR performance derive higher fundamental value estimates in response to positive CSR per...
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作者：Cohen, Jeffrey R.; Hoitash, Udi; Krishnamoorthy, Ganesh; Wright, Arnold M.
作者单位：Boston College; Northeastern University
摘要：Calls from practice suggest that audit committee members with industry expertise can improve audit committee effectiveness. Nevertheless, regulators and the extant literature have focused on the financial expertise of the audit committee. We posit that audit committee industry knowledge is valuable because accounting guidance, estimates, and oversight of the external auditor are often linked to a company's operations within a particular industry. Taking a holistic view, we examine two measures...
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作者：Frimor, Hans
作者单位：Aarhus University
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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：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...
