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作者：Jing, Chenxing; Xu, Bin; Zuo, Luo
作者单位：University of International Business & Economics; University of Reading; National University of Singapore
摘要：We examine whether financial disclosures affect firm sustainability practices. Using mandatory segment reporting in the United States as the setting, we find that disclosing financial information about previously hidden segments in polluting industries reduces toxic emissions from firm plants. This effect is consistent with the notion that segment disclosures enhance monitoring of firm pollution by highlighting the financial materiality of polluting segments and drawing stakeholders' attention...
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作者：Cuny, Christine; Kim, Jungbae; Mehta, Mihir N.
作者单位：New York University; Singapore Management University; University of Chicago
摘要：When subject to public scrutiny, do firms strategically use advertising to reduce expected political costs? Advertising can ease public concerns, thereby reducing the pressure on politicians to act harshly against scrutinized firms and their industries. We use repeated congressional testimony by industry members as a novel way to identify political scrutiny. Our central finding is that scrutinized industries increase their advertising spending 132 percent more in the electorates of politicians...
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作者：Liu, Lisa Yao; Tong, Lijing
作者单位：Columbia University; Beijing Jiaotong University
摘要：We study a regulatory spillover in which audit regulations for public firms can affect auditing practices for private firms through the channel of common partners-partners who audit both public and private firm clients. We exploit a regulation in China that applies only to public firm auditing and aims to enhance transparency and rigor in audit procedures. We find that audit partners are more inclined to issue modified opinions for private firm clients following the implementation of the regul...
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作者：Ball, Ray
作者单位：University of Chicago
摘要：This essay explores the economics of contracting in firms and the role accounting plays in it. It views firms as specialist contracting intermediaries, obtaining scale economies from repetitive contracting with owners of factors of production and consumers. It builds on the Coase (1937) insight that firms exist due to contracting-cost advantages over markets and proposes that common accounting methods are a source of that advantage: that they are contracting-useful. This perspective provides e...
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作者：Loh, Wei Ting
作者单位：Singapore Management University
摘要：This study examines whether information sharing occurs within institutional investor networks. I identify networks of institutional investors who share common investments and find that in-network investors earn significantly higher returns than other investors of the same firm, suggesting that valuable private information is shared within these networks. I also find that ownership by investor networks is associated with speedier price discovery and incorporation of more firm-specific news in p...
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作者：Bonham, Jonathan
作者单位：University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital
摘要：I study theoretical properties of earnings, prices, and compensation by developing a dual moral hazard model in which a productive manager can selectively include verifiable information in an accounting report. When the cost of information is moderate, the solution exhibits several empirically-descriptive properties: market values exceed book values, the optimal earnings-based contract has a floor and a ceiling, the accounting system resembles historical cost with big bath write-downs but not ...
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作者：Dai, Jiyuan; Ormazabal, Gaizka; Penalva, Fernando; Raney, Robert
作者单位：University of Cyprus; University of Navarra; IESE Business School; Centre for Economic Policy Research - UK
摘要：We study the decarbonization effects of imposing sustainability regulation on investors. Our focus is the EU Sustainable Finance Disclosure Regulation (SFDR), which requires funds domiciled or marketed in the EU to classify themselves based on different degrees of sustainability commitment and imposes disclosure requirements based on such classification. Using a broad sample of international investment funds, we document that the SFDR was followed by a significant decarbonization (around 10 pe...
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作者：Khurana, Inder K.; Li, Bing; Yeung, Kelvin; Yu, Elisha J.
作者单位：University of Missouri System; University of Missouri Columbia; City University of Hong Kong; City University of New York (CUNY) System; Baruch College (CUNY)
摘要：Building on economic theories of cultural transmission, we examine how audit partners' cultural trust influences audit outcomes. Based on the presumptive doubt perspective of professional skepticism, we propose that audit partners from trusting cultures are more likely to rely on management's assertions, while still exercising a high degree of caution and not naively trusting management. Consistent with our prediction, we find that audit partners from trusting cultures commit fewer Type I erro...
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作者：Guay, Wayne; Kim, Chongho; Timmermans, Oscar
作者单位：University of Pennsylvania; Seoul National University (SNU); University of London; London School Economics & Political Science
摘要：We examine the role of firms' internal information quality (IIQ) in designing executive incentive contracts. We find that higher IIQ is associated with a greater number of performance metrics and increased dissimilarity from peer firms' contracts, particularly along non-financial dimensions. These relations hold when we examine changes in IIQ that are likely induced by plausibly exogenous shifts in two financial accounting standards. We further find that incorporating more numerous and more di...
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作者：Bhattacharya, Nilabhra; Chakrabarty, Bidisha; Ma, Matthew; Pan, Jing
作者单位：Southern Methodist University; Saint Louis University; Rutgers University System; Rutgers University Camden; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; Southern Methodist University
摘要：As markets replace contractual liquidity providers (designated market makers; DMMs) with voluntary liquidity provision through cutting-edge technology, we investigate how this affects price discovery. Research suggests that endogenous liquidity provision is not always optimal. We investigate how DMMs affect the incorporation of earnings news into prices. Using a regression discontinuity design, we show that increased DMM participation facilitates earnings news discovery-lower JUMP, lower Synch...
