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作者：Chen, Hui; Petrov, Evgeny
作者单位：University of Zurich
摘要：Stock prices often provide firm managers with new information that can be used in real decisions. Studies generally focus on the ex ante disclosure policy and show that the presence of market feedback crowds out firms' disclosure. We instead examine a manager's ex post biasing incentives and find that market feedback amplifies overreporting bias, but not necessarily underreporting bias, due to three interacting effects. First, the manager biases the report more with feedback since decreased in...
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作者：Frost, Tracie; Jing, Jiao; Shang, Longfei; Su, Lixin (Nancy)
作者单位：Hong Kong Polytechnic University; Jinan University; Southwestern University of Finance & Economics - China
摘要：Foreign workers have been an important part of the labor force in public accounting firms over the past two decades. In this paper, we investigate whether and why foreign workers influence audit quality. We find that audit offices with more newly hired foreign labor have a lower mean absolute value of discretionary accruals and a smaller rate of restatements for their clients. The effect is more pronounced for audit offices that face more resource constraints or require greater foreign experti...
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作者：Gam, Yong Kyu; Liu, Chunbo
作者单位：University College Dublin; Shanghai International Studies University
摘要：This paper investigates how banks utilize soft information to provide contractual flexibility in loan covenant enforcement. We find that relationship lenders are significantly less likely than non-relationship lenders to enforce covenants for material violations when borrowers are potentially in breach of financial covenants. The mitigation of information asymmetry by relationship lending, as opposed to alternative explanations, serves as the underlying mechanism. Furthermore, relationship bor...
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作者：Donelson, Dain C.; Hutzler, Christian M.; Monsen, Brian R.; Yust, Christopher G.
作者单位：University of Iowa; University System of Ohio; Ohio State University; Texas A&M University System; Texas A&M University College Station
摘要：Critics assert that securities class actions are economically burdensome and yield minimal recoveries, whereas proponents claim they deter wrongdoing. We examine key events in the recent Goldman Sachs Supreme Court case to test the net effect of securities litigation risk on shareholder value. We find that investors view securities class actions as value-increasing. However, the strength of this effect varies based on external monitoring. Investors view securities class actions as more value-e...
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作者：Pittman, Jeffrey; Yang, Zhifeng; Yu, Sijia; Zhu, Haoran
作者单位：Memorial University Newfoundland; Virginia Polytechnic Institute & State University; State University of New York (SUNY) System; Stony Brook University; Xi'an International Studies University; Southern University of Science & Technology
摘要：This study extends extant research on the determinants of financial analyst bias by examining the role that political incentives play. Using a series of scheduled provincial political events in China, we document that analysts are significantly more likely to issue favorable recommendations or revise their recommendations upward during political event periods, and the effect of political events on optimism is larger for analysts employed by brokerage firms affiliated with politicians. Cross-se...
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作者：Berger, Allen N.; Kim, Hugh Hoikwang; Ma, Xiaonan Flora
作者单位：University of South Carolina System; University of South Carolina Columbia; University of South Carolina System; University of South Carolina Columbia; Washington State University
摘要：We analyze how bank sentiment affects bank liquidity hoarding, distinguishing unexplained beliefs of bank managers from fundamental-based beliefs. We build a bank management sentiment measure from textual analysis of 10-Ks and utilize a comprehensive bank liquidity hoarding measure. We find that negative bank sentiment increases liquidity hoarding not warranted by a bank's fundamental conditions or external circumstances. Further analysis confirms that our findings reflect bank volition rather...
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作者：Jia, Yonghong; Gao, Xinghua
作者单位：Iowa State University; Washington State University; Iowa State University
摘要：Auditor changes are significant corporate events marking disruptions in the auditor-client relationship. Prior studies have primarily examined the impact of such changes on audit quality and investment decisions of market participants. We study the effect of auditor changes on the voluntary disclosure of forward-looking information. Managers may choose to reduce disclosure due to the possible adverse effect of the disruptions on disclosure credibility. Alternatively, shareholders may demand in...
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作者：Couchoux, Oriane
作者单位：Carleton University; Carleton University
摘要：Using data collected from 21 interviews with audit committee members (ACMs) of Canadian reporting issuers, this study examines the ways in which ACMs understand and enact the additional responsibilities placed on them by regulators in the post-Sarbanes-Oxley Act era. Adopting a social constructivist approach to knowledge and expertise, the study shows that despite the financial literacy requirements for ACMs, financial expertise is far from being uniformly understood by ACMs. Indeed, ACMs perc...
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作者：Crowley, Richard M.; Huang, Wenli; Lu, Hai
作者单位：Singapore Management University; Hong Kong Polytechnic University; University of Toronto; Peking University
摘要：The study provides large-scale descriptive evidence on the timing and nature of corporate financial tweeting. Using an unsupervised machine learning approach to analyze 24 million tweets posted by S&P 1500 firms from 2012 to 2020, we find that firms are more likely to tweet financial information around significantly negative or positive news events, such as earnings announcements and the filing of financial statements. This convex U-shaped relation between the likelihood of posting financial t...
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作者：Pappas, Kostas; Walker, Martin; Xu, Alice Liang; Zeng, Cheng (Colin)
作者单位：University of Liverpool; University of Manchester; Alliance Manchester Business School; Hong Kong Polytechnic University
摘要：This study examines the relationship between government subsidies and income smoothing using a sample of US-listed firms. We find that subsidized firms smooth their earnings more aggressively than their unsubsidized peers. This finding is consistent with the reasoning that subsidized firms bear higher political costs and have more incentives to smooth earnings to avoid public attention. In addition, smoothing by subsidized firms is more pronounced when the subsidies are granted through non-tax...
