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作者：Li, Siqi
作者单位：Santa Clara University
摘要：This study examines whether the mandatory adoption of International Financial Reporting Standards (IFRS) in the European Union (EU) in 2005 reduces the cost of equity capital. Using a sample of 6,456 firm-year observations of 1,084 EU firms during the 1995 to 2006 period, I find evidence that, on average, the IFRS mandate significantly reduces the cost of equity for mandatory adopters by 47 basis points. I also find that this reduction is present only in countries with strong legal enforcement...
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作者：Ahn, Tae Sik; Hwang, Iny; Kim, Myung-In
作者单位：Seoul National University (SNU); Drexel University; Inha University
摘要：The literature addresses optimal contract design issues that the principal must address to provide proper incentives to the agent. However, there has been limited empirical assessment of how agents actually respond to the performance-evaluation schemes in the contracts offered them. Moreover, the literature overlooks factors, other than those from the pay-for-performance context, that may impact the effectiveness of incentive provisions. This study considers the effect of discriminability on a...
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作者：Stubben, Stephen R.
作者单位：University of North Carolina; University of North Carolina Chapel Hill
摘要：This study examines the ability of revenue and accrual models to detect simulated and actual earnings management. The results indicate that revenue models are less biased, better specified, and more powerful than commonly used accrual models. Using a simulation procedure, I find that revenue models are more likely than accrual models to detect a combination of revenue and expense manipulation. Using a sample of firms subject to SEC enforcement actions for a mix of revenue- and expense-related ...
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作者：Hope, Ole-Kristian; Langli, John Christian
作者单位：University of Toronto; BI Norwegian Business School
摘要：We examine the issue of auditor independence in a unique setting. Specifically, we test for auditor independence impairment among (1) private client firms, for which the risk of auditor reputation loss is lower than for publicly traded firms, and (2) in a low litigation environment (i.e., Norway) that further reduces the expected costs to the auditor associated with independence impairment. We have thus chosen a setting that gives independence impairment its best chance of being detected if it...
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作者：Williams, Michael G.; Hughes, John S.; Levine, Carolyn B.
作者单位：University of California System; University of California Los Angeles; Carnegie Mellon University
摘要：In this study, we consider the effects of the asymmetry in capital gains tax policy on the communication of private information to investors. Assuming quite plausibly that firm managers tend to favor current stockholder returns relative to future stockholder returns, though not exclusively, we identify conditions under which limitations on the deductibility of capital losses lend efficacy to unverified public disclosures that allow managers of higher value firms to separate from lower value fi...
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作者：Caskey, Judson; Nagar, Venky; Petacchi, Paolo
作者单位：University of California System; University of California Los Angeles; University of Michigan System; University of Michigan; University of Massachusetts System; University Massachusetts Dartmouth
摘要：This study models a manager who privately reports earnings to an independent audit committee that, after its own due diligence, modifies the report for public release to investors. The audit committee alters the reporting and valuation dynamics by attempting to remove the manager's reporting bias, but then presents the information it has collected with its own bias. The audit committee's presence changes the impact of penalties and incentives on reporting, valuation, and due-diligence activiti...
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作者：Gow, Ian D.; Ormazabal, Gaizka; Taylor, Daniel J.
作者单位：Northwestern University; Stanford University
摘要：We review and evaluate the methods commonly used in the accounting literature to correct for cross-sectional and time-series dependence. While much of the accounting literature studies settings in which variables are cross-sectionally and serially correlated, we find that the extant methods are not robust to both forms of dependence. Contrary to claims in the literature, we find that the Z2 statistic and Newey-West corrected Fama-MacBeth standard errors do not correct for both cross-sectional ...
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作者：Seybert, Nicholas
作者单位：University of Texas System; University of Texas Austin
摘要：Prior research finds that mandatory expensing induces underinvestment in research and development (R&D). The current study investigates whether capitalization can also create R&D investment problems. Abandoning a capitalized project requires asset impairment, a negative reporting effect that could damage managers' reputations. In an experiment utilizing M.B.A. student participants, I find that managers responsible for initiating an R&D project are more likely to overinvest when R&D is capitali...
