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作者：Dutta, Sunil; Fan, Qintao
作者单位：University of California System; University of California Berkeley
摘要：We examine the optimal choice of hurdle rates in a capital budgeting setting in which a manager receives superior information regarding the profitability of an investment project. Unlike the prior capital budgeting literature that treats the distribution of investment returns as exogenous, we consider a scenario in which the manager can engage in upfront project development activities to improve the quality of investment opportunity. To motivate the project development effort while ensuring tr...
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作者：Gong, Guojin; Li, Laura Yue; Xie, Hong
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; Syracuse University
摘要：We investigate the association between errors in management forecasts of subsequent year earnings and current year accruals. In an uncertain operating environment, managers' assessments of their firms' business prospects are imperfect. Since managers' imperfect business assessments influence both accruals generation and earnings projection, we hypothesize that management earnings forecasts exhibit greater optimism (pessimism) when accruals are relatively high (low). Consistent with this hypoth...
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作者：Frank, Mary Margaret; Lynch, Luann J.; Rego, Sonja Olhoft
作者单位：University of Virginia; University of Iowa
摘要：We investigate the association between aggressive tax and financial reporting and find a strong, positive relation. Our results suggest that insufficient costs exist to offset financial and tax reporting incentives, such that nonconformity between financial accounting standards and tax law allows firms to manage book income upward and taxable income downward in the same reporting period. To examine the relation between these aggressive reporting behaviors, we develop a measure of tax reporting...
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作者：Ortega, Jaime
作者单位：Universidad Carlos III de Madrid
摘要：This study examines the relationship between performance pay and the decision to delegate the choice of work methods and scheduling. I compare two theoretical approaches, based on specific knowledge and measurement costs, respectively. Both perspectives suggest a complementarity between discretion and performance pay, but the former predicts a positive effect of job complexity on discretion and performance pay, and the latter implies a negative effect. Results suggest that group and firm-wide ...
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作者：Bloomfield, Robert; Hales, Jeffrey
作者单位：Cornell University; University System of Georgia; Georgia Institute of Technology
摘要：We use two experiments to test predictions about the positive and negative impacts of allowing analysts to revise their forecasts in light of the consensus forecasts. We find that such mutual observation not only facilitates information aggregation, but also induces free riding, which offsets the benefits of information aggregation unless incentives for accuracy are high. In our second experiment, we find that participants acting as investors anticipate these effects in the consensus and adjus...
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作者：Ferri, Fabrizio; Sandino, Tatiana
作者单位：Harvard University
摘要：We examine the economic consequences of more than 150 shareholder proposals to expense employee stock options (ESO) submitted during the proxy seasons of 2003 and 2004, the first case in which the SEC allowed a shareholder vote on an accounting matter. Our results indicate that these proposals affected accounting and compensation choices. Specifically, (1) targeted firms were more likely to adopt ESO expensing relative to a control sample of S&P 500 firms, (2) among targeted firms, the likelih...
