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作者：Chung, Dennis Y.; Hrazdil, Karel
作者单位：Simon Fraser University
摘要：We examine whether the post-earnings announcement drift (PEAD) varies cross-sectionally with short-horizon return predictability from order flows, which characterizes the information environment and reflects the extent to which information is efficiently impounded in prices. We first demonstrate that this proxy for market efficiency captures the degree of market frictions that limit arbitrage activities. We then present evidence that the inverse of short-horizon return predictability is negati...
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作者：Hobson, Jessen L.
作者单位：University of Illinois System; University of Illinois Urbana-Champaign
摘要：Standard setters and regulators generally assume that making accounting information easier to process leads to more efficient markets, thereby benefiting traders. I test that assumption in markets that I construct to be more prone to price bubbles. Market efficiency (i.e., trading at expected fundamental economic values) will increase if and only if reduced accounting information complexity leads traders to process that information to a greater extent than more complex information and then to ...
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作者：Kochetova-Kozloski, Natalia; Messier, William F., Jr.; Eilifsen, Aasmund
作者单位：Nevada System of Higher Education (NSHE); University of Nevada Las Vegas
摘要：One hundred and fifty auditors participated in a study that examines whether auditors' probabilistic judgments are closer to a Bayesian benchmark when auditors make judgments using a frequency response mode versus a probability response mode. We test a series of hypotheses that examine the effect of using a frequency response mode by professional auditors both within and outside their knowledge domain (fraud or medical case context) on assessing the likelihood of rare events. The results show ...
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作者：El Ghoul, Sadok; Guedhami, Omrane; Pittman, Jeffrey
作者单位：University of Alberta; University of South Carolina System; University of South Carolina Columbia; Memorial University Newfoundland
摘要：We analyze the importance of Internal Revenue Service (IRS) monitoring to equity pricing in U.S. public firms. Our evidence from large samples implies that equity financing is cheaper when the probability of an IRS audit is higher, enabling investors to learn more about the firm. Reflecting its first-order economic impact, our coefficient estimates translate into the cost of equity capital falling, on average, by 58 basis points when the expected probability of an IRS audit rises from 30.51 pe...
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作者：Farrell, Anne M.; Krische, Susan D.; Sedatole, Karen L.
作者单位：University System of Ohio; Miami University; American University; Michigan State University
摘要：We examine employees' subjective valuations of their stock options in terms of their distribution around firms' opportunity cost of issuing options. Using both '' real-world '' and experiment data, we show that a significant proportion of employees (30 percent) and experiment participants (47 percent) apparently fail to fully incorporate the time-value component of option value, and instead anchor on three readily-available values, two of which lie below cost (zero value, intrinsic value) and ...
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作者：Lu, Hai; Richardson, Gordon; Salterio, Steven
作者单位：University of Toronto; Queens University - Canada
摘要：Public disclosure about effectiveness of internal control systems is subject to much controversy in Canada, resulting in Canadian disclosures being made in Management Discussion and Analysis (MD&A). These disclosures are provided to investors without a definition of the weaknesses to be reported, without implementation effectiveness testing, with no direct management certification, and with no external audit of such disclosures. Though the cost of such SOX North disclosures are lower than in t...
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作者：Hsu, Charles; Kross, William
作者单位：Hong Kong University of Science & Technology; State University of New York (SUNY) System; University at Buffalo, SUNY
摘要：We re-investigate the market pricing of special items, with particular emphasis on how managers '' frame '' these non-operating earnings components via their inclusion or exclusion from '' street '' earnings, the earnings numbers that firms disclose in their press releases and that analysts track and forecast. When managers include the special items in '' street earnings (i.e., '' street '' = GAAP), the market overprices them, believing the special items to be more persistent than they actuall...
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作者：Botosan, Christine A.; Plumlee, Marlene A.; Wen, He
作者单位：Utah System of Higher Education; University of Utah
摘要：Existing literature employs two approaches to assess the validity of alternative proxies for firm-specific cost of equity capital. One approach relies on the theoretical link between future realized returns and cost of equity capital, while the second approach relies on the theoretical link between cost of equity capital and priced risk. The results of these two streams of literature are conflicting. The first approach provides no support for the construct validity of any of the cost of equity...
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作者：Gong, James Jianxin; Van der Stede, Wim A.; Young, S. Mark
作者单位：California State University System; California State University Fullerton; University of London; London School Economics & Political Science; University of Southern California
摘要：We examine the application of real options within two contexts of motion picture investment decisions by studio executives. The first is whether to continue marketing a film following its initial release in theaters (an abandonment option). The second centers on the decision to produce a sequel to an original film (a growth option). Few accounting studies have examined the use of real options but they are of considerable importance to companies managing risk through their cost structure and ca...
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作者：Pandit, Shail; Wasley, Charles E.; Zach, Tzachi
作者单位：University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital; University of Rochester; University System of Ohio; Ohio State University
摘要：We study the economic determinants of the information externality suppliers experience at the time of their customers' earnings announcements. We measure the information externality as the suppliers' stock price reaction to the announcements. We find that the information externalities are increasing in the magnitude of the new information disclosed by customers; the strength of the economic bond between the firms; components of the customers' earnings information; the level of market uncertain...
