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作者：Blum, Emily S.; Hoang, Kris
作者单位：Texas A&M University System; Texas A&M University College Station; Mays Business School; University of Alabama System; University of Alabama Tuscaloosa
摘要：Audit senior associates are essential to audit production, yet we know little about how they experience their organizational role. We interview 45 U.S.-based audit seniors and find they experience persistent paradoxical tensions between contradictory yet interrelated objectives, stemming from their middle hierarchical position as both experienced associates and novice executives. Applying Paradox Theory, we find seniors sometimes work around paradox by attending to one paradoxical objective to...
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作者：Kubic, Matthew; Silva, Rui; Toynbee, Sara
作者单位：University of Texas System; University of Texas Austin; University of Washington; University of Washington Seattle
摘要：We investigate whether prior employment connections influence the strictness of the Securities and Exchange Commission (SEC) filing review process. Using novel data on over 250 accountants at the SEC, we define connected examiners as accountants reviewing financial statements audited by their former employer. We find that SEC review teams with a higher percentage of connected examiners are less likely to detect financial statement errors, raise fewer substantive issues, and are less likely to ...
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作者：Blann, James J.; Moon Jr, James R.
作者单位：University System of Georgia; Georgia Institute of Technology
摘要：The FASB recently issued ASU 2024-03, which requires disaggregation of significant expenses, like cost of goods sold (COGS) , selling, general , administrative (SG&A) expenses. Proponents argue disaggregation will improve decision usefulness, whereas opponents suggest the information will be costly and provide little value. We provide large-sample evidence on the pre-ASU state of expense disaggregation, analyze whether it appears to provide decision-useful information, and explore differences ...
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作者：Glenk, Gunther; Meier, Rebecca; Reichelstein, Stefan
作者单位：University of Mannheim; Leibniz Association; Zentrum fur Europaische Wirtschaftsforschung (ZEW); Stanford University
摘要：Companies across industries face increasing pressure to assess the costs of decarbonizing their operations. This paper develops a generic model for constructing abatement cost curves in connection with carbon dioxide emissions. The resulting abatement cost curves provide a planning tool for companies seeking to project their decarbonization pathways and to determine optimal abatement levels in response to environmental regulations such as carbon pricing. We calibrate our model in the context o...
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作者：Du, Kai; Louis, Henock; Schmidt, Brent A.; Wang, Shuyang
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; Northeastern University
摘要：Using a dataset constructed through textual analysis and manual data collection, we show that, prior to ASC 606, firms with principal-versus-agent (PA) exposure face heightened GAAP compliance risk, reflected in a greater likelihood of receiving revenue-related SEC comment letters and higher audit fees. Following the adoption of ASC 606, these differences decline, consistent with the standard's stated goal of simplifying PA assessments and reducing implementation challenges. Overall, our findi...
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作者：Khan, Urooj; Nissim, Doron; Wen, Jing
作者单位：University of Texas System; University of Texas Austin; Columbia University; City University of Hong Kong
摘要：Public financial information plays a critical role in the takeover market by helping acquirers search for and value potential targets. Using a difference-in-differences research design around a regulatory disclosure mandate that changed the granularity of financial disclosure for certain privately held banks, we find that banks with reduced disclosure are less likely to be targeted in M&A transactions. Acquirers adapt to information frictions arising from reduced disclosures by bidding for geo...
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作者：Bens, Daniel A.; Cassar, Gavin; Huang, Ying; Keusch, Thomas
作者单位：University System Of New Hampshire; University of New Hampshire; INSEAD Business School; Chinese University of Hong Kong
摘要：We exploit a one-month period when SEC activity largely stopped during a U.S. government shutdown to examine whether variation in SEC scrutiny affects its ability to enforce insider trading. Difference-in-differences analyses suggest insiders earn abnormal profits during the shutdown, and the findings are robust to using different control periods and groups. We estimate that it takes roughly one week before the abnormally profitable trading begins, consistent with insiders updating their belie...
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作者：Yang, Jingyu; Yu, Yangxin; Zheng, Liu
作者单位：Shenzhen University; City University of Hong Kong
摘要：This study examines the impact of political corruption on the provision of CEO risk-taking incentives. We hypothesize that firms adjust their CEO's risk-taking incentives to reflect the influence of local political corruption on the firms' desired level of risk-taking. Using U.S. Department of Justice data on local political corruption, we find that the sensitivity of CEO wealth to stock volatility (vega) is lower in firms located in high-corruption districts. The negative impact of corruption...
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作者：Bernard, Darren; Blankespoor, Elizabeth; de Kok, Ties; Toynbee, Sara
作者单位：University of Washington; University of Washington Seattle; University of Texas System; University of Texas Austin
摘要：Business complexity involves important tradeoffs for managers and investors, but empirical evidence is limited by measurement issues. We construct and validate a measure of business complexity using a GPT model fine-tuned on narrative disclosures and inline XBRL tags. We first show that our measure is associated with slower price formation in capital markets, consistent with complexity increasing processing costs. Next, we apply our measure to study the complexity of debt, an economically impo...
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作者：Bik, Olof; Bouwens, Jan; Knechel, W. Robert; Zou, Yuxia
作者单位：University of Groningen; University of Amsterdam; State University System of Florida; University of Florida; University of Auckland; Nanyang Technological University
摘要：We examine how audit firms changed their policies regarding audit partner performance measurement, career development, and compensation during a period of heightened public scrutiny of audit quality (2007 to 2017). We theorize how implementing policy changes requires a delicate transition in the organizational design and internal processes of the firms and may not effectively translate into their day-to-day practices. Our access to proprietary performance management policies and individual par...
