-
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...
-
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...
-
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...
-
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...
-
作者：Liu, Junhao
作者单位：University of Melbourne
摘要：Using website cookie information from U.S. firms' websites, I measure consumer data collected through cookies and examine how such data affect firms' accounting information environments. Cookies provide granular and real-time consumer data to firms' internal information environments and may improve the quality of internal information that managers rely on for external reporting. I find that firms with more cookies issue management sales forecasts more frequently and devote a larger share of di...
-
作者：Azinovic-Yang, Li; Baldenius, Tim
作者单位：University of Chicago; Columbia University
摘要：How does information asymmetry within firms affect their innovation incentives? To address this question, we introduce an agency problem with strategic reporting into an experimentation setting. Severe agency problems disrupt truthful reporting, and thereby also experimentation. However, for moderate agency problems, the firm may experiment more than in a symmetric information setting, because experimenting improves the agent's reporting incentives. Unlike traditional real-options models, expe...
-
作者：Hanlon, Michelle; Shroff, Nemit; Yoon, Rachel
作者单位：Massachusetts Institute of Technology (MIT); Boston University
摘要：This paper examines whether corporate tax cuts alter product-market competition by differentially affecting firms with high versus low tax burdens. Tax cuts increase after-tax cash flows for profitable firms but provide little immediate benefit to loss-making firms. We study the 1986 Tax Reform Act, which reduced the top corporate tax rate by 12 percentage points, and examine route-level price and quantity data from the U.S. airline industry. We find that in response to the Act, profitable air...
-
作者：Huber, Stefan J.; Watts, Edward M.; Zhu, Christina
作者单位：University of Pennsylvania; Yale University; European Corporate Governance Institute
摘要：We study the informational value of trading networks in over-the-counter (OTC) markets. Using detailed transaction-level data from the corporate bond market, we show that investors with larger dealer networks make superior trading decisions before changes in credit fundamentals, resulting in better risk-adjusted performance. We trace these investors' superior trading decisions to trading connections where dealers are most likely to have access to novel credit-relevant information, supporting t...
-
作者：Duguay, Raphael; Li, Chenchen; Zhang, Frank
作者单位：Yale University
摘要：This paper studies how mandatory greenhouse gas disclosure affects new business formation. We find a significant increase in business entry following the implementation of the Greenhouse Gas Reporting Program in affected industries, relative to unaffected controls. We propose two channels. First, through a production channel, disclosure pressures incumbent firms to reduce emissions by scaling back production or reallocating resources toward cleaner technologies, weakening incumbents' competiti...
-
作者：Gallo, Lindsey A.; Jin, Hengda; Sridharan, Suhas A.
作者单位：University of Michigan System; University of Michigan; Texas A&M University System; Texas A&M University College Station; Mays Business School; Emory University
摘要：This paper examines time-series variation in the relationship between aggregate earnings and GDP (AEG). Using quarterly data from 1979-2019, we document that aggregate earnings are positively associated with future real GDP after 2000 but not before. We further show that this variation does not result from an association between aggregate earnings and the corporate profits component of GDP. Instead, we discover that aggregate special items-not core earnings-drive the post-2000 AEG by conveying...
