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作者：Libby, Robert; Brown, Timothy
作者单位：Cornell University; University of Illinois System; University of Illinois Urbana-Champaign
摘要：Current IFRS requires significant disaggregation of income statement numbers while such disaggregation is voluntary and much less common under U.S. GAAP. We examine whether voluntary disaggregation of income statement numbers increases the reliability of income statement subtotals because auditors permit less misstatement in the disaggregated numbers. In our experiment, experienced auditors require correction of smaller errors in disaggregated numbers. Auditors also believe that greater disagg...
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作者：Falsetta, Diana; Rupert, Timothy J.; Wright, Arnold M.
作者单位：University of Miami; Northeastern University - China
摘要：This study examines the effect of timing (gradual versus immediate) and direction (tax increase or decrease) of a tax change on taxpayer behavior. Specifically, we focus on capital gain tax changes and preferences for investment in riskier assets. We run an experiment with 117 participants who allocate investment dollars between two funds of differing risk. Drawing on mental accounting and hedonic editing (Thaler 1985; Thaler and Johnson 1990), we posit that a tax decrease (a gain) implemented...
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作者：Chen, Chen; Martin, Xiumin; Wang, Xin
作者单位：University of Auckland; Washington University (WUSTL); University of Hong Kong
摘要：We investigate whether insider selling affects the likelihood of firms receiving auditor going-concern opinions. Prior studies document significant negative market reactions to the issuance of going-concern opinions, indicating that such opinions convey bad news to investors. Insider sales followed by negative news are likely to attract regulators' scrutiny and investor class-action lawsuits. Therefore, we predict that, to reduce the risk of litigation, managers have incentives to avoid receiv...
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作者：Demerjian, Peter R.; Lev, Baruch; Lewis, Melissa F.; McVay, Sarah E.
作者单位：Emory University; New York University; Utah System of Higher Education; University of Utah; University of Washington; University of Washington Seattle
摘要：We examine the relation between managerial ability and earnings quality. We find that earnings quality is positively associated with managerial ability. Specifically, more able managers are associated with fewer subsequent restatements, higher earnings and accruals persistence, lower errors in the bad debt provision, and higher quality accrual estimations. The results are consistent with the premise that managers can and do impact the quality of the judgments and estimates used to form earnings.
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作者：Kecskes, Ambrus; Mansi, Sattar A.; Zhang, Andrew (Jianzhong)
作者单位：Virginia Polytechnic Institute & State University; Nevada System of Higher Education (NSHE); University of Nevada Las Vegas
摘要：We examine whether short sellers in the equity market provide valuable information to investors in the bond market. Using a sample of publicly traded bond data covering the period from 1988 to 2011, we find that firms with high short interest have lower credit ratings and are more likely to have their ratings downgraded. We also find that firms with highly shorted stocks are associated with higher bond yield spreads (about 24 basis points). Evidence of causality from short interest spikes and ...
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作者：Joos, Philip P. M.; Leung, Edith
作者单位：Tilburg University
摘要：This paper examines the stock market reaction to 15 events relating to IFRS adoption in the United States. The goal is to assess whether investors perceive the switch to IFRS as beneficial or costly. Our findings suggest that investors' reaction to IFRS adoption is more positive in cases where IFRS is expected to lead to convergence benefits. Our results also indicate a less positive market reaction for firms with higher litigation risk, which is consistent with investors' concerns about great...
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作者：Chuk, Elizabeth C.
作者单位：University of Southern California
摘要：I examine whether firms alter their behavior in response to changes in accounting standards that mandate new financial statement disclosures. While prior research suggests that new recognition rules lead to changes in firm behavior, there is limited evidence that disclosure rules can impact firm behavior. This study helps to fill this void in the literature by examining the economic consequences of the mandated disclosures of pension asset composition required under SFAS 132R. Under pension ac...
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作者：Mola, Simona; Rau, P. Raghavendra; Khorana, Ajay
作者单位：University of Cambridge
摘要：This paper examines the value of sell-side analysts to covered firms by documenting the effects on firm performance and investor interest after a complete loss of analyst coverage for periods of at least one year. We find that analyst coverage adds value to a firm both because it reduces information asymmetries about the firm's future performance and because it maintains investor recognition for that firm's stock. After the introduction of regulations that curtailed the informational advantage...
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作者：Francis, Jere R.; Michas, Paul N.
作者单位：University of Missouri System; University of Missouri Columbia; University of Arizona
摘要：We investigate if the existence of low-quality audits in an auditor office indicates the presence of a contagion effect on the quality of other (concurrent) audits conducted by the office. A low-quality audit is defined as the presence of one or more clients with overstated earnings that were subsequently corrected by a downward restatement. We document that the quality of audited earnings (abnormal accruals) is lower for clients in these office-years (when the misreporting occurred) compared ...
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作者：De George, Emmanuel T.; Ferguson, Colin B.; Spear, Nasser A.
作者单位：University of Michigan System; University of Michigan; University of Melbourne
摘要：This study provides evidence of a directly observable and significant cost of International Financial Reporting Standards (IFRS) adoption, by examining the fees incurred by firms for the statutory audit of their financial statements at the time of transition. Using a comprehensive dataset of all publicly traded Australian companies, we quantify an economy-wide increase in the mean level of audit costs of 23 percent in the year of IFRS transition. We estimate an abnormal IFRS-related increase i...
