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作者：Chen, Songsheng; Li, Chan; Sun, Lili; Zhang, Xiren
作者单位：Beijing Institute of Technology; University of Kansas; University of North Texas System; University of North Texas Denton; Beijing Institute of Technology
摘要：This study investigates whether auditors incorporate investor information demand when determining key audit matter (KAM) disclosures. We measure investor information demand using a unique dataset of investor inquiries submitted through investor interactive platforms (IIPs) established by China's major stock exchanges. At the topic level, we find that auditors are more likely to disclose a given topic as a KAM when investors raise more inquiries on that topic. At the aggregate level, a higher p...
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作者：Cho, Isabel J.; Lennox, Clive; Li, Xiangyu
作者单位：University of Southern California
摘要：This study investigates the practice of re-audits-where an incoming audit firm re-audits the prior year's financial statements previously examined by a predecessor audit firm. We examine the costs and benefits of such re-audits. We find that re-audits are more likely when the risks of misstatement are high and when incoming auditors can expect to win more clients by identifying material misstatements overlooked by predecessor auditors. Our results show that incoming auditors who perform re-aud...
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作者：Oh, Jun; She, Guoman
作者单位：Purdue University System; Purdue University; National University of Singapore
摘要：We examine how employee fears of automation-driven job displacement influence corporate disclosure of automation plans. Using a novel measure of local automation fear constructed from cable news transcripts, we document a robust negative relation between automation fear and firms' propensity to provide forward-looking disclosure about automation strategies. This effect strengthens when disclosure conveys incremental information, when automation substitutes for labor, and when firms face greate...
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作者：Ghosh, Pulak; Jacob, Martin; Kang, Ya; Zhang, Jian
作者单位：Indian Institute of Management (IIM System); Indian Institute of Management Bangalore; University of Navarra; IESE Business School; Chinese University of Hong Kong; University of Hong Kong
摘要：This paper examines how consumption taxes-through the taxation of input goods-can affect firms' product mix decisions. We study India's staggered transition from a sales tax, where there was the risk that intermediate inputs are taxed multiple times along the supply chain, to a valueadded tax (VAT) that offered credits for taxes paid on inputs. Using detailed product-level data for manufacturing firms and a stacked difference-in-differences design, we find that firms respond to the VAT adoptio...
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作者：Blankespoor, Elizabeth; Croom, Joe; Grant, Stephanie M.
作者单位：University of Washington; University of Washington Seattle; Indiana University System; Pennsylvania State System of Higher Education (PASSHE); Indiana University Bloomington; Indiana University of Pennsylvania; University of Illinois System; University of Illinois Urbana-Champaign
摘要：This paper provides archival and survey evidence on retail investor use of Generative AI (GenAI). Our archival analysis examines over 400,000 investor queries to a major brokerage's GenAI chatbot. Investors most often use GenAI to help interpret and contextualize financial information and market movements, and for additional tasks including stock screening and streamlining complex research. As time with the tool grows, usage shifts from stock screening and high-level company assessments toward...
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作者：Li, Xue
作者单位：Indiana University System; Pennsylvania State System of Higher Education (PASSHE); Indiana University Bloomington; Indiana University of Pennsylvania
摘要：Investors increasingly turn to social media for information, even though many sites are saturated with ideological opinions. This paper examines whether ideology-driven social media opinions affect stock market responses to polarizing firm news, using boycotts as the empirical setting. On average, polarizing boycotts are associated with a 1% (2.3%) drop in equity value over the seven (60) trading days after gaining social media traction. Consistent with ideology-driven opinions affecting marke...
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作者：Dee, Carol Callaway; Luo, Bing; Wang, Elaine; Zhang, Jing
作者单位：Stetson University; California State University System; San Francisco State University; University of Massachusetts System; University of Massachusetts Amherst; University of Colorado System; Children's Hospital Colorado; University of Colorado Anschutz; University of Colorado Denver
摘要：We examine whether critical audit matter (CAM) reporting improves internal controls over financial reporting. We propose that CAM reporting improves internal control quality. This is because CAM reporting incentivizes early identification and communication of internal control issues among auditors, management, and audit committees, and increases their attention and effort in high-risk CAM areas. We find that, compared to control companies, companies that implement CAM reporting experience a si...
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作者：Boylen, Kathleen; Gaertner, Fabio B.; Martin, Melissa A.
作者单位：California State University System; California State University Northridge; University of Wisconsin System; University of Wisconsin Madison; University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital
摘要：This paper investigates the relation between executive compensation and corporate tax policies, with a focus on the Tax Cuts and Jobs Act of 2017 (TCJA). Using a pay-performance sensitivity framework, we analyze the differing compensation rewards associated with domestic and foreign pre-tax incomes. Our findings reveal that, before the TCJA, executives received significantly higher rewards for foreign income, encouraging them to shift income abroad. The TCJA reduced this disparity, bringing re...
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作者：Berger, Philip G.; Tomy, Rimmy E.
作者单位：University of Chicago
摘要：We examine the role of reporting quality in firms' responses to a supply chain shock. Extant research examines the role of financial or managerial reporting quality in recurring operating or investing decisions, but little evidence exists on its role in firm restructuring following adverse shocks. Our setting is the 1999 Taiwan earthquake, which disrupted supply chains for certain U.S. high-technology manufacturers. We find total factor productivity increases for affected firms relative to una...
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作者：Feng, Mei; Lee, Lian Fen; Yin, Benda
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh; Hong Kong University of Science & Technology
摘要：This paper examines the association between managers' failure to incorporate macroeconomic news and firm performance, focusing on the role of competitors. Measuring this failure using the extent to which management revenue forecast errors reflect U.S. consumer sentiment, we find an asymmetric association. When firms underestimate consumer demand and underproduce, failing to incorporate consumer sentiment news is associated with worse performance, but when they overestimate demand and overprodu...
