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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：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：Evans, John Harry, III
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh
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作者：Huang, Allen H.; Zang, Amy Y.; Zheng, Rong
作者单位：Hong Kong University of Science & Technology
摘要：We document that textual discussions in a sample of 363,952 analyst reports provide information to investors beyond that in the contemporaneously released earnings forecasts, stock recommendations, and target prices, and also assist investors in interpreting these signals. Cross-sectionally, we find that investors react more strongly to negative than to positive text, suggesting that analysts are especially important in propagating bad news. Additional evidence indicates that analyst report te...
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作者：Czerney, Keith; Schmidt, Jaime J.; Thompson, Anne M.
作者单位：University of Illinois System; University of Illinois Urbana-Champaign; University of Texas System; University of Texas Austin
摘要：According to auditing standards, explanatory language added at the auditor's discretion to unqualified audit reports should not indicate increased financial misstatement risk. However, an auditor is unlikely to add language that would strain the auditor-client relationship absent concerns about the client's financial statements. Using a sample of 30,825 financial statements issued with unqualified,audit opinions during 2000-2009, we find that financial statements with audit reports containing ...
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作者：Kachelmeier, Steven J.; Majors, Tracie; Williamson, Michael G.
作者单位：University of Texas System; University of Texas Austin; University of Illinois System; University of Illinois Urbana-Champaign
摘要：Risk-based auditing implies that auditors invest more (fewer) resources as reporting risks increase (decrease). We find from an interactive experiment that participants in an audit-like role reflect this reasoning to a lesser extent when risks arise from intentional actions of human reporters than when the same risks arise from an unintentional source. We interpret this pattern as reflecting an emotive valuation by feeling when risks arise from human intent, meaning that the presence of risk i...
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作者：Kirk, Marcus P.; Reppenhagen, David A.; Tucker, Jennifer Wu
作者单位：State University System of Florida; University of Florida
摘要：The expectations management literature has so far focused on firms meeting the analyst consensus forecast-the expectations of analysts as a group-at earnings announcements. In this study we argue that investors may use individual analyst forecasts as additional benchmarks in evaluating reported earnings because the consensus forecast underutilizes private information contained in individual analyst forecasts. We predict that measures reflecting such private information have incremental explana...
