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作者：Agoglia, Christopher P.; Doupnik, Timothy S.; Tsakumis, George T.
作者单位：University of Massachusetts System; University of Massachusetts Amherst; University of South Carolina System; University of South Carolina Columbia; Drexel University
摘要：Recent accounting scandals have resulted in regulatory initiatives designed to strengthen audit committee oversight of corporate financial reporting and have led to a concern that U.S. GAAP has become too rules-based. We examine issues related to these initiatives using two experiments. CFOs in our experiments exhibit more agreement and are less likely to report aggressively under a less precise (more principles-based) standard than under a more precise (more rules-based) standard. Our results...
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作者：Ahmed, Anwer S.; Kilic, Emre; Lobo, Gerald J.
作者单位：Texas A&M University System; Texas A&M University College Station; University of Houston System; University of Houston
摘要：We provide evidence on the effects of SFAS 133 on the risk relevance of accounting measures of bank derivative exposures to bond markets. First, we find that interest rate derivatives classified as hedging are more negatively associated with fixed-rate bond spreads after SFAS 133. We also find that hedging derivatives offset non-trading positions to a greater extent after SFAS 133. Second, for the largest 25 banks, we find that interest and foreign exchange rate trading derivatives are more ne...
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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：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：Lehavy, Reuven; Li, Feng; Merkley, Kenneth
作者单位：University of Michigan System; University of Michigan
摘要：This study examines the effect of the readability of firms' written communication on the behavior of sell-side financial analysts. Using a measure of the readability of corporate 10-K filings, we document that analyst following, the amount of effort incurred to generate their reports, and the informativeness of their reports are greater for firms with less readable 10-Ks. Additionally, we find that less readable 10-Ks are associated with greater dispersion, lower accuracy, and greater overall ...
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作者：Brewster, Billy E.
作者单位：University of Texas System; University of Texas Arlington
摘要：Auditors are required to understand dynamic business environments as part of the performance of analytical procedures. Prior evidence, though, suggests that auditors have difficulty understanding such environments. This study reports an experimental investigation of techniques that help auditors to identify incorrect management representations by developing expectations that are both accurate and adaptive to changing business conditions. My predictions suggest that analyzing a dynamic client e...
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作者：Blouin, Jennifer L.; Raedy, Jana S.; Shackelford, Douglas A.
作者单位：University of Pennsylvania; University of North Carolina; University of North Carolina Chapel Hill; National Bureau of Economic Research
摘要：This study jointly evaluates firm-level changes in investor composition and shareholder distributions following a 2003 reduction in the dividend and capital gains tax rates for individuals. We find that directors and officers, but not other individual investors, rebalanced their portfolios to maximize after-tax returns in light of the new tax rules. We also find that firms adjusted their distribution policy (specifically, dividends versus share repurchases) in a manner consistent with the alte...
