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作者：Qi, Yue; Seidel, Timothy A.; Zhang, Joseph H.; Zhang, Junsheng
作者单位：University of Science & Technology of China, CAS; Chinese Academy of Sciences; University of Science & Technology of China, CAS; Brigham Young University; University System of Ohio; Bowling Green State University; Sun Yat Sen University
摘要：The engagement quality review is a key component of an audit firm's quality control system. This study leverages unique data on individual engagement quality reviewers (EQRs) to examine how previous shared working experience between EQRs and engagement partners affects audit quality. While prior research suggests that within-firm network ties between predecessor and successor partners facilitate knowledge transfer, we find that prior shared working experience between EQRs and engagement partne...
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作者：Dagostino, Ramona; Nakhmurina, Anya
作者单位：University of Virginia; Yale University
摘要：This paper studies how partisan alignment between city leaders and state governors shapes information processing and bond pricing in the municipal bond market. Using a novel data set on 1,045 U.S. cities from 2005 to 2019, we show that cities with the same political affiliation as the state governor face 9 basis points lower borrowing costs than misaligned cities. The effect is stronger for riskier bonds, in states where governors hold greater authority, and for fiscally dependent cities. Alig...
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作者：Boland, Matthew; Hlaing, Khin Phyo; Lisowsky, Petro
作者单位：Boston University
摘要：This study examines the relation between taxes and business investment using the setting of an unexpected and economically significant federal corporate income tax rate increase in Canada known colloquially as the Halloween Massacre of 2006. This tax increase only applies to firms organized as income trusts, but not corporations. Using a difference-in-differences design, we find that investment by income trusts decreases about 0.67% for each 1 percentage point increase in the tax rate, transla...
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作者：Lee, Yoojin; Ng, Shaphan; Venkat, Aruhn
作者单位：California State University System; California State University Long Beach; Singapore Management University; University of California System; University of California Riverside
摘要：We examine whether the largest place-based, firm-specific corporate subsidies (Megadeals) awarded by state and local governments affect local firms' innovation. First, we document that (1) subsidy firms innovate in the subsidized county and (2) subsidy firms bring inventors from other counties into the subsidized county, consistent with subsidy firms generating new knowledge locally. In our main test, we use a stacked cohort design with stringent fixed effects to document that local firms incr...
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作者：Lamoreaux, Phillip T.; Matkaluk, Lauren; Sheneman, Amy G.
作者单位：Arizona State University; Arizona State University-Tempe; University of San Diego; University System of Ohio; Ohio State University
摘要：This paper examines investors' perceptions of auditor involvement in non-GAAP reporting as captured by non-GAAP disclosures in 10-K filings. We find that firm-years with auditor involvement in non-GAAP reporting have higher CARs, lower bid-ask spreads, lower stock volatility, and lower abnormal trading volume on 10-K filing dates. To sharpen identification of auditor involvement, we hand-collect non-GAAP measures and reconciliations for S&P 500 firms and identify which exclusions reconcile dir...
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作者：Dube, Svenja; Lee, Hye Seung (grace); Wang, Danye
作者单位：City University of New York (CUNY) System; Baruch College (CUNY); Fordham University; University of Iowa
摘要：We examine whether and, if so, how retail consumers change their shopping in response to firm-specific negative environmental, social, and governance (ESG) news. Using an event study methodology, we do not find significant changes in consumer foot traffic in response to negative ESG news, on average. However, the average consumer reacts negatively when such news is covered by national or global media outlets, which elevates consumer awareness. In addition, we provide evidence of the heterogene...
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作者：Barrios, John M.; Choi, Jung Ho; Hochberg, Yael V.; Kim, Jinhwan; Liu, Miao
作者单位：Yale University; National Bureau of Economic Research; Stanford University; Rice University; Boston College
摘要：We examine the spillover effects of local initial public offerings (IPOs) on new business formation. An IPO in a local area is associated with a 1%-4% increase in new business registrations, and this effect is particularly pronounced in counties facing higher economic uncertainty. New business registrations are significantly influenced by the extent of EDGAR downloads related to the IPO firm's public disclosures and the information in the IPO firm's S-1 disclosure. The findings highlight the r...
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作者：Blankespoor, Elizabeth; Dehaan, Ed; Li, Qianqian
作者单位：University of Washington; University of Washington Seattle; Stanford University
摘要：Generative artificial intelligence (GAI) will likely alter many aspects of the financial reporting process and spawn a deep stream of academic research. We take an early step by examining the extent to which firms have begun using GAI in one important part of the reporting process: writing disclosures. We begin by evaluating a commercial tool's ability to detect GAI writing in disclosures, and we find that it reliably identifies even very small amounts of GAI usage in realistic samples. We the...
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作者：Laux, Volker; Mahieux, Lucas
作者单位：University of Texas System; University of Texas Austin; Tilburg University
摘要：Regulators are contemplating or mandating precise measurement of financial climate-risk exposure to promote sustainable investments. We show that such mandates can be counterproductive in the presence of social funds that catalyze change by subsidizing the adoption of cleaner production technologies. Firms can exploit a social fund's impact motive by measuring their climate-risk exposure imprecisely. This strategic imprecision prevents the fund from distinguishing between firms that require su...
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作者：Ferrell, Frank Allen; Manconi, Alberto; Neretina, Ekaterina; Powley, William; Renneboog, Luc
作者单位：Harvard University; Bocconi University; Bocconi University; Tilburg University; European Corporate Governance Institute
摘要：We study plaintiff law firms in corporate litigation, focusing on star firms that dominate settlement outcomes. Stars are associated with larger settlements; however, much of this effect is predicted by the defendant's litigation insurance coverage, suggesting assortative matching of stars with lawsuits that have ex ante larger expected payoffs. Moreover, stars charge higher fees for a given settlement size. Additional tests suggest that visibility and information asymmetry vis-& agrave;-vis l...
