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作者：Zeff, Stephen A.
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作者：Cheng, Qiang; Farber, David B.
作者单位：University of Wisconsin System; University of Wisconsin Madison; University of Missouri System; University of Missouri Columbia
摘要：Prior research finds that earnings restatements are linked to CEOs' excessive option-based compensation and equity holdings. In this paper, we investigate whether firms that experience earnings restatements recontract with their CEOs to reduce their option-based compensation and if so, whether this leads to improved firm performance. Based on 289 restatement firms over the period 1997-2001, we find that the proportion of CEOs' compensation in the form of options declines significantly in the t...
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作者：Venkataraman, Ramgopal; Weber, Joseph P.; Willenborg, Michael
作者单位：Southern Methodist University; Massachusetts Institute of Technology (MIT); University of Connecticut
摘要：We use the IPO setting to examine the relation between auditor exposure to legal liability and audit quality and audit fees. With regard to audit quality, we report robust evidence that pre-IPO audited accruals are negative and less than post-IPO audited accruals. In contrast to extant literature, our findings provide scant support for the inference that auditors acquiesce to opportunistic earnings management by issuers in an attempt to increase the offering price. With regard to audit fees, w...
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作者：Jiang, John (Xuefeng)
作者单位：Michigan State University
摘要：Prior research documents that firms tend to beat three earnings benchmarks-zero earnings, last year's earnings, and analyst's forecasted earnings-and that there are both equity market and compensation-related benefits associated with beating these benchmarks. This study investigates whether and under what conditions beating these three earnings benchmarks reduces a firm's cost of debt. I use two proxies for a firm's cost of debt: credit ratings and initial bond yield spread. Results suggest th...
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作者：Drake, Andrea R.; Haka, Susan E.
作者单位：University of Louisiana System; Louisiana Technical University; Michigan State University
摘要：Negotiations between buyers and suppliers that require sharing cost details to identify profitable relationship specific investments often fail and result in hold-ups. Based on inequity aversion, strategic uncertainty, and risk dominance criteria, we expect negotiators to be more reluctant to share fine information than coarse, less detailed information, which suggests that fine information systems can exacerbate hold-ups. When negotiators share fine information they achieve more efficient bar...
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作者：Barth, Mary E.; Hodder, Leslie D.; Stubben, Stephen R.
作者单位：Stanford University; Indiana University System; Indiana University Bloomington; University of North Carolina; University of North Carolina Chapel Hill
摘要：We find that equity returns associated with credit risk changes are attenuated by the debt value effect of the credit risk changes, as Merton (1974) predicts. We find that the relation between credit risk changes and equity returns is significantly less negative for firms with more debt-controlling for asset value changes, credit risk increases (decreases) are associated with equity value increases (decreases). This result obtains across credit risk levels. The relation is associated with chan...
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作者：Beneish, Messod Daniel; Billings, Mary Brooke; Hodder, Leslie D.
作者单位：Indiana University System; Indiana University Bloomington; New York University
摘要：We analyze a sample of 330 firms making unaudited disclosures required by Section 302 and 383 firms making audited disclosures required by Section 404 of the Sarbanes-Oxley Act. We find that Section 302 disclosures are associated with negative announcement abnormal returns of -1.8 percent, and that firms experience an abnormal increase in equity cost of capital of 68 basis points. We conclude that Section 302 disclosures are informative and point to lower credibility of disclosing firms' finan...
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作者：Cohen, Daniel A.; Dey, Aiyesha; Lys, Thomas Z.
作者单位：New York University; University of Chicago; Northwestern University
摘要：We document that accrual-based earnings management increased steadily from 1987 until the passage of the Sarbanes-Oxley Act (SOX) in 2002, followed by a significant decline after the passage of SOX. Conversely, the level of real earnings management activities declined prior to SOX and increased significantly after the passage of SOX, suggesting that firms switched from accrual-based to real earnings management methods after the passage of SOX. We also document that the accrual-based earnings m...
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作者：Hughes, John S.; Williams, Michael G.
作者单位：University of California System; University of California Los Angeles; University of Oregon
摘要：In this paper, we examine the welfare effects of pre-production commitments made by firms competing in oligopoly markets and disclosure of such commitments. By commitments we refer to any device that provides a strategic incentive to alter production choices. Examples include forward contracts, capital structure, research and development investment, terms of compensation, and cost allocation. If the only purpose underlying commitment is to gain a strategic advantage in product market competiti...
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作者：Brown, Philip
作者单位：University of New South Wales Sydney; University of Western Australia
