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作者：Cassell, Cory A.; Dreher, Lauren M.; Myers, Linda A.
作者单位：University of Arkansas System; University of Arkansas Fayetteville
摘要：Securities and Exchange Commission( SEC) comment letters provide independent and timely feedback on the clarity of disclosures and on the extent to which filings comply with Generally Accepted Accounting Principles and SEC reporting regulations. We investigate factors that affect the probability of receiving a 10-K comment letter, the extent of comments received, and the cost of remediation. We find that in addition to factors explicitly stated to increase SEC scrutiny in Section 408 of the Sa...
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作者：Hilary, Gilles; Shen, Rui
作者单位：Erasmus University Rotterdam; Erasmus University Rotterdam - Excl Erasmus MC
摘要：When a firm issues a management forecast, analysts who have observed more forecasts from this firm since Covering it (i.e., have more MF-Experience) subsequently improve their own accuracy more and provide timelier earnings forecasts for other (non-issuing) firms in the same industry. We also find that, subsequent to a management forecast, investors are more responsive to forecast revisions for non-issuing firms made by analysts with more MF-Experience. Further tests suggest that our results a...
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作者：Naiker, Vic; Sharma, Divesh S.; Sharma, Vineeta D.
作者单位：Monash University; University System of Georgia; Kennesaw State University
摘要：To address potential threats to auditor independence, the Sarbanes-Oxley Act of 2002 (SOX) requires the audit committee to pre-approve nonaudit services (NAS) procured from the auditor. However, the presence of a former audit firm partner (FAP) affiliated with the current auditor on the audit committee could undermine the audit committee's due diligence over the NAS pre-approval process. To alleviate such concerns, the Securities and Exchange Commission approved a three-year cooling-off'' peri...
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作者：Lee, Sam (Sunghan); Pandit, Shailendra; Willis, Richard H.
作者单位：University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital; Vanderbilt University
摘要：We study the joint effects of intercompany investing and reporting of equity method investments on the accuracy and dispersion of analysts' annual earnings-per-share (EPS) forecasts. We compare firm-year observations with and without equity method investments. We posit two non-mutually exclusive explanations for how equity method investments may affect analyst forecast properties. The Opacity Effect posits that the condensed equity method disclosures increase information asymmetry, increasing ...
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作者：Cheng, Lin; Liao, Scott; Zhang, Haiwen
作者单位：University of Arizona; University of Toronto; University System of Ohio; Ohio State University
摘要：We examine the commitment effect provided by mandatory disclosure and the information effect of voluntary disclosure on market illiquidity by exploring a regulatory change that allows smaller reporting companies to reduce the disclosure of certain information in their SEC filings. This regime change allows us to separate the commitment effect provided by mandatory disclosure from the information effect of voluntary disclosure. We find that firms that are eligible to reduce their disclosure, bu...
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作者：Hong, Hyun A.
作者单位：University of Memphis
摘要：I examine whether voting premiums are reduced following mandatory International Financial Reporting Standards (IFRS) adoption for firms that have a dual-class share structure. I find that mandatory adopters' voting premiums decrease, on average, by 8 percent subsequent to mandatory IFRS adoption. This effect is statistically significant relative to the corresponding effect for non-IFRS adopters. Further, I find that this effect is more pronounced in countries with strong legal enforcement and ...
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作者：Zhang, Guochang
作者单位：Hong Kong University of Science & Technology
摘要：In an extended capital asset pricing model (CAPM) setting, I examine how the quality of accounting standards affects real investment and welfare through its impact on investment hurdle rates. In this model, cash flow uncertainty arises from two fundamental sources relating, respectively, to economic performance and accounting measurement errors, but they combine into a single market factor for asset pricing. Accounting standards matter to real investment not only because information quality af...
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作者：Kilic, Emre; Lobo, Gerald J.; Ranasinghe, Tharindra; Sivaramakrishnan, K.
作者单位：University of Houston System; University of Houston; Singapore Management University; Rice University
摘要：We examine the impact of SFAS 133, Accounting for Derivative Instruments and Hedging Activities, on the reporting behavior of commercial banks and the informativeness of their financial statements. We argue that, because mandatory recognition of hedge ineffectiveness under SFAS 133 reduced banks' ability to smooth income through derivatives, banks that are more affected by SFAS 133 rely more on loan loss provisions to smooth income. We find evidence consistent with this argument. We also find ...
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作者：Blankespoor, Elizabeth; Linsmeier, Thomas J.; Petroni, Kathy R.; Shakespeare, Catherine
作者单位：Stanford University; Michigan State University; University of Michigan System; University of Michigan
摘要：Many have argued that financial statements created under an accounting model that measures financial instruments at fair value would not fairly represent a bank's business model. In this study we examine whether financial statements using fair values for financial instruments better describe banks' credit risk than less fair-value-based financial statements. Specifically, we assess the extent to which various leverage ratios, which are calculated using financial instruments measured along a fa...
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作者：Banker, Rajiv D.; Darrough, Masako N.; Huang, Rong; Plehn-Dujowich, Jose M.
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University; City University of New York (CUNY) System; Baruch College (CUNY)
摘要：This study focuses on the relation between current compensation and past performance measures as signals of a chief executive officer's (CEO's) ability. We develop a simple two-period principal-agent model with moral hazard and adverse selection and test theoretical predictions using CEO compensation data from 1993-2006. Consistent with the predictions, we find that salary (bonus) is positively (negatively) associated with past performance for both continuing and newly hired CEOs. We also find...
