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作者：Badertscher, Brad A.; Hribar, S. Paul; Jenkins, Nicole Thorne
作者单位：University of Notre Dame; University of Iowa; Vanderbilt University
摘要：We examine how informed trading activities affect the market reaction to accounting restatements. We find significantly less negative reactions to accounting restatements when managers are net purchasers of stock before the restatement, and significantly more negative market reactions when managers are net sellers. Similar patterns characterize corporate trading, where prior stock repurchases dampen negative reactions and prior equity issuances increase negative reactions to the restatement. W...
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作者：Bertomeu, Jeremy; Beyer, Anne; Dye, Ronald A.
作者单位：Northwestern University; Stanford University
摘要：This paper develops a model of financing that jointly determines a firm's capital structure, its voluntary disclosure policy, and its cost of capital. Investors who receive securities in return for supplying capital sometimes incur losses when they trade their securities with an informed trader. The firm's disclosure policy and the structure of its securities determine the information advantage of the informed trader and, hence, the size of investors' trading losses and the firm's cost of capi...
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作者：Lawrence, Alastair; Minutti-Meza, Miguel; Zhang, Ping
作者单位：University of Toronto
摘要：This study examines whether differences in proxies for audit quality between Big 4 and non-Big 4 audit firms could be a reflection of their respective clients' characteristics. In our analyses, we use three audit-quality proxies-discretionary accruals, the ex ante cost-of-equity capital, and analyst forecast accuracy-and employ propensity-score and attribute-based matching models in attempt to control for differences in client characteristics between the two auditor groups while estimating the...
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作者：Koonce, Lisa; Nelson, Karen K.; Shakespeare, Catherine M.
作者单位：University of Texas System; University of Texas Austin; Rice University; University of Michigan System; University of Michigan
摘要：We conduct three experiments to test if investors' views about fair value are contingent on whether the financial instrument in question is an asset or liability, whether fair values produce gains or losses, and whether the item will or will not be sold/settled soon. We draw on counterfactual reasoning theory from psychology, which suggests that these factors are likely to influence whether investors consider fair value as providing information about forgone opportunities. The latter, in turn,...
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作者：Messier, William F., Jr.; Reynolds, J. Kenneth; Simon, Chad A.; Wood, David A.
作者单位：Nevada System of Higher Education (NSHE); University of Nevada Las Vegas; Norwegian School of Economics (NHH); State University System of Florida; Florida State University; Brigham Young University
摘要：This study examines how using the internal audit function (IAF) as a management training ground (MTG) affects external audit fees and the external auditors' perceptions of the IAF. Over half of all companies that have an IAF specifically hire internal auditors with the purpose of rotating them into management positions (or cycle current employees into the IAF for a short stint before promoting them into management positions). Using archival data, we find that external auditors charge higher fe...
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作者：Gong, Guojin; Li, Laura Yue; Shin, Jae Yong
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; University of Illinois System; University of Illinois Urbana-Champaign; Seoul National University (SNU)
摘要：This study examines the explicit use of relative performance evaluation (RPE) in executive compensation contracts and the selection of RPE peers. Using S&P 1500 firms' first proxy disclosures under the SEC's 2006 executive compensation disclosure rules, we find that about 25 percent of our sample firms explicitly use RPE in setting executive compensation. We demonstrate that a lack of knowledge of both actual peer-group composition and the link between RPE-based performance targets and future ...
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作者：Konchitchki, Yaniv
作者单位：University of Southern California
摘要：The monetary unit assumption of financial accounting assumes a stable currency (i.e., constant purchasing power over time). Yet, even during periods of low inflation or deflation, nominal financial statements violate this assumption. I posit that, while the effects of inflation are not recognized in nominal statements, such effects may have economic consequences. I find that unrecognized inflation gains and losses help predict future cash flows as these gains and losses turn into cash flows ov...
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作者：Hao, Shengquan; Jin, Qinglu; Zhang, Guochang
作者单位：Shanghai Jiao Tong University; Shanghai University of Finance & Economics; Hong Kong University of Science & Technology
摘要：Using Zhang (2000) as the theoretical basis, we predict and empirically test the effect of investment growth on the relation between equity value and accounting variables. We find that (1) growth increases the slope in the value-earnings relation for high-profitability firms (consistent with growth having positive NPV),buthas an insignificant or negative effect on the slope for lower-profitability firms (consistent with growth having non-positive NPV); (2) given earnings, growth increases the ...
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作者：Chen, Feng; Hope, Ole-Kristian; Li, Qingyuan; Wang, Xin
作者单位：University of Toronto; Wuhan University; Chinese University of Hong Kong
摘要：Prior research shows that financial reporting quality (FRQ) is positively related to investment efficiency for large U.S. publicly traded companies. We examine the role of FRQ in private firms from emerging markets, a setting in which extant research suggests that FRQ would be less conducive to the mitigation of investment inefficiencies. Earlier studies show that private firms have lower FRQ, presumably because of lower market demand for public information. Prior research also shows that FRQ ...
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作者：Young, Steven; Yang, Jing
作者单位：Lancaster University
摘要：We examine the link between firms' stock repurchase activity and the presence of earnings per share (EPS) performance conditions in executive compensation contracts. Findings reveal a strong positive association between repurchases and EPS-contingent compensation arrangements. Further analysis suggests net benefits to shareholders from this association. Specifically, repurchasers experience larger increases in total payouts; the positive association between repurchases and cash performance is ...
