Contemporary Accounting Research

最新文章

• Performance measure skewness and the structure of CEO compensation: Theory and evidence AI翻译
  作者：Chaigneau, Pierre; Chang, Woo-Jin; Hillegeist, Stephen A.
  作者单位：Queens University - Canada; emlyon business school; Arizona State University; Arizona State University-Tempe
  摘要：While research has analyzed how the structure of incentive pay relates to the dispersion of the performance measure distribution, as measured by its variance or volatility, we examine how it relates to the asymmetry of the distribution, as measured by its skewness. In contrast to the variance, skewness affects the relative informativeness of high and low performance about the agent's effort, which determines the relative efficiency of providing rewards and punishments for incentive purposes. T...
• Leader versus lagger: How the timing of financial reports affects audit quality and investment efficiency AI翻译
  作者：Liu, Nanqin; Zhang, Xiao-Jun
  作者单位：University of Macau; University of California System; University of California Berkeley
  摘要：This paper examines how relative timing affects the quality of financial reports in a staggered reporting system in which some firms report earlier than others. We show that the audit quality of the leading firm exceeds that of the lagger. Investment efficiency also differs systematically across firms, depending on the relative reporting timing as well as the audit market structure. Audit regulations mitigate the misalignment of interests between auditors and investors but limit the effect of ...
• CEO gender and responses to shareholder activism AI翻译
  作者：Jackson, Scott C.; Rennekamp, Kristina M.; Steenhoven, Blake A.
  作者单位：Nevada System of Higher Education (NSHE); University of Nevada Las Vegas; Cornell University; Queens University - Canada
  摘要：Recent literature finds that firms led by female CEOs are more likely to be targeted by activist shareholders and that female CEOs are more likely to cooperate with activist shareholders' requests. Our study complements this literature by using two controlled experiments and a series of semi-structured interviews with CEOs and CFOs to investigate how a CEO's response to shareholder activism influences investors' reactions and whether these reactions differ depending on the gender of the CEO or...
• The predictive ability of tax contingencies for future income tax cash outflows AI翻译
  作者：Ciconte, William A.; Donohoe, Michael P.; Lisowsky, Petro; Mayberry, Michael A.
  作者单位：University of Illinois System; University of Illinois Urbana-Champaign; Boston University; State University System of Florida; University of Florida; University of Illinois System; University of Illinois Urbana-Champaign
  摘要：Prior research shows that contingent liabilities do not accurately predict future cash payments due to the managerial discretion afforded by accounting standards. We examine the extent to which current accounting guidance for a material contingent liability-the reserve for unrecognized tax benefits (UTBs) under Financial Interpretation No. 48 (FIN 48)-generates accruals that are predictive of future income tax cash outflows. We document that UTBs fully unwind as cash tax payments over the subs...
• Flexible or rigid? Evidence on managerial ability and cost structure AI翻译
  作者：Banker, Rajiv D.; Huang, Rong; Wang, Yuxuan; Yan, Yan
  作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University; Fudan University; Sun Yat Sen University; City University of New York (CUNY) System; Queens College NY (CUNY)
  摘要：This study investigates the association between managerial ability and cost rigidity. Cost rigidity refers to the relative proportion of fixed and variable costs. We expect that high-ability managers will assess the potential upside congestion and downside default risks and choose an appropriate level of cost rigidity accordingly. Our results show that, on average, high-ability managers tend to adopt a more rigid cost structure because they are more likely to realize favorable demand, and ther...
• Public enforcement through independent directors AI翻译
  作者：Li, Xiaoxi; Rao, Pingui; Yang, Yong George; Yue, Heng
  作者单位：Jinan University; Chinese University of Hong Kong; Singapore Management University
  摘要：We examine how public enforcement and private enforcement interact to contain self-dealing activities in emerging markets. Using data from China, we find that firms receiving comment letters concerning related party transactions (RPTs) from stock exchanges significantly reduce their RPTs in subsequent years. We further find that (1) the subsequent reduction in RPTs is more pronounced when independent directors have higher career or reputation concerns and (2) independent directors are more lik...
• Control issues: How providing input affects auditors' reliance on artificial intelligence AI翻译
  作者：Commerford, Benjamin P.; Eilifsen, Aasmund; Hatfield, Richard C.; Holmstrom, Kathryn M.; Kinserdal, Finn
  作者单位：University of Kentucky; Norwegian School of Economics (NHH); University of Alabama System; University of Alabama Tuscaloosa; Iowa State University
  摘要：In this study, we examine auditors' reliance on artificial intelligence (AI) systems that are designed to provide evidence around complex estimates. In an experiment with highly experienced auditors, we find that auditors are more hesitant to rely on evidence from AI-based systems compared to human specialists, consistent with algorithm aversion. Importantly, we also find that a small amount of control (i.e., providing input to specialists) can mitigate this aversion, though this effect depend...
• Information content of credit rating affirmations AI翻译
  作者：Jung, Boochun; Kausar, Asad; Kim, Byungki; Park (Chris), You-il; Zhou, Jian
  作者单位：University of Hawaii System; University of Hawaii Manoa; American University; University of Queensland
  摘要：We examine the economic determinants and informational effects of credit rating affirmations (i.e., the reiteration of past credit ratings) for a sample of US public firms from 1995 to 2020. We find that credit rating affirmations typically follow major corporate events and changes in firm fundamentals that increase information uncertainty about a firm's creditworthiness, suggesting that affirmations reduce uncertainty. We further document that rating affirmations provide value-relevant inform...
• Demand uncertainty, inventory, and cost structure AI翻译
  作者：Chang, Xin; Kwok, Wing Chun; Wong, George
  作者单位：Nanyang Technological University; Hang Seng University of Hong Kong; Hong Kong Polytechnic University; Hong Kong Polytechnic University
  摘要：Building on Banker, Byzalov, and Plehn-Dujowich's (2014, The Accounting Review, 89(3), 839-865) congestion cost theory, we model firms' trade-off between a rigid cost structure and a high inventory level to reduce the congestion costs caused by uncertain demand. We demonstrate that firms with a higher inventory level adopt a less rigid cost structure, but the effect of cost structure on inventory is theoretically ambiguous. Using a large sample of manufacturing firms in the United States, we e...
• How do investors value the publication of tax information? Evidence from the European public country-by-country reporting AI翻译
  作者：Mueller, Raphael; Spengel, Christoph; Weck, Stefan
  作者单位：University of Mannheim; Leibniz Association; Zentrum fur Europaische Wirtschaftsforschung (ZEW)
  摘要：We examine the costs associated with public disclosure, as opposed to confidential reporting, of tax country-by-country reporting (CbCR) information. Our study addresses a critical knowledge gap, considering the growing adoption of public tax transparency measures. We aim to illuminate this matter by examining the expected costs for firms of making previously confidential CbCR information publicly available. The fact that the information was previously confidentially reported to the tax author...