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作者：Lee, Kenneth; Aleksanyan, Mark; Harris, Elaine; Manochin, Melina
作者单位：Loughborough University; University of Glasgow; Roehampton University; University of Birmingham; Loughborough University
摘要：Every analyst will experience stock recommendation failures during their career. Unlike many other professions, these pivotal moments occur in the full glare of clients, colleagues, equity-sales teams, and the media. This research explores the practices of analysts up to and beyond the point where, faced with a failing recommendation, they contemplate throwing in the towel on their recommendation. Based on empirical evidence gathered from interviews with sell-side analysts and their key interl...
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作者：Jing, Jiao; Myers, Linda A.; Ng, Jeffrey; Su, Lixin (Nancy)
作者单位：University of Jinan; University of Tennessee System; University of Tennessee Knoxville; University of Hong Kong; Hong Kong Polytechnic University
摘要：Customer referencing is a strategy that firms can use to disclose their connections with reputable customers as a means of enhancing their own reputations. We study the capital market benefits of naming reputable nonmajor customers in firms' financial reports to provide empirical evidence on whether this form of customer referencing has important practical implications. We predict and find that firms enjoy a lower cost of equity when they engage in customer referencing in their financial repor...
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作者：Gopalan, Radhakrishnan; Martin, Xiumin; Srinivasan, Kandarp
作者单位：Washington University (WUSTL); Northeastern University
摘要：We document controlling shareholder (insider) opportunism in an insolvency regime that uses an accounting rule to determine bankruptcy eligibility. Our study sheds light on managerial incentives induced by weak investor protection laws. Using unique data on bankrupt firms from an emerging market, consistent with our prediction, we show insiders intentionally manage earnings downward to understate firm net worth so as to be able to file for bankruptcy. Downward pre-bankruptcy earnings managemen...
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作者：Thompson, Rachel A.
作者单位：North Dakota State University Fargo
摘要：In recent years, firms reporting revisions of prior financial statements outnumber those reporting restatements. Misstatements that are material to prior periods are required to be reported as restatements, whereas immaterial errors can be reported as revisions. Based on SEC guidance and widely used materiality benchmarks, I find a significant percentage (29%) of revisions are suspect in that they meet at least one materiality criterion. These suspect revisions are 15% to 29% more likely to be...
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作者：Kim, Jeong-Bon; Wiedman, Christine; Zhu, Chunmei
作者单位：City University of Hong Kong; University of Waterloo; Chinese University of Hong Kong
摘要：We investigate whether credit default swap (CDS) trading results in managers learning new information through stock prices that is relevant to their investment and forecasting decisions. We argue that the CDS market structure, the sophistication of CDS market participants, and the cleanness of CDS spreads as a signal of default risk together produce and convey information that is new to managers of firms referenced in CDS contracts. We consider two measures for managerial learning: (1) the sen...
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作者：Maksymov, Eldar; Pickerd, Jeffrey; Wilks, T. Jeffrey; Williams, Devin
作者单位：Arizona State University; Arizona State University-Tempe; University of Mississippi; Brigham Young University; University of Oklahoma System; University of Oklahoma - Norman
摘要：The Sarbanes-Oxley Act charges management with the primary responsibility for internal control over financial reporting (ICFR). However, prior research tells us little about the ICFR process from management's perspective. We develop a theoretical model of the ICFR process from management's perspective and examine that model by surveying 145 and interviewing 35 accounting executives at large US public companies. Our primary finding is that executives feel constrained in their ability to direct ...
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作者：Khurana, Inder K.; Zhong, Rong (Irene)
作者单位：University of Missouri System; University of Missouri Columbia; University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital
摘要：The rise of stakeholder governance has triggered a wave of legal initiatives to strengthen the employee voice in firms. However, how managers trade off the competing objectives between shareholders and employees when making financial reporting decisions is not well understood. Exploiting staggered employment protection laws (EPLs) across 26 countries, we find that managers facing strong EPLs report more opaque earnings. Exploring the mechanism, we show that EPLs induce manager-employee allianc...
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作者：Hoang, Hien; Phang, Soon-Yeow
作者单位：Monash University
摘要：We examine whether the benefits and consequences of building trust through corporate social responsibility (CSR) vary when the company engages in material or immaterial CSR, and the conditions under which these benefits hold. Our study informs companies about the relative benefits and consequences of engaging in particular types of CSR activities. Prior archival research finds that CSR performance can buffer companies against negative stock reactions caused by subsequent adverse events, such a...
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作者：Ali, Ashiq; Amiram, Dan; Kalay, Alon; Sadka, Gil
作者单位：University of Texas System; University of Texas Dallas; Tel Aviv University; Michigan State University
摘要：This study examines whether analysts have an industry-level information advantage over managers when forecasting earnings. While analysts are often viewed as industry experts, prior research fails to document such an advantage. We predict that analysts' industry-level information advantage is more likely to exist in industries where firm performance is more sensitive to industry-level external economic forces. We find that for such firms, analysts provide relatively more accurate earnings fore...
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作者：Marshall, Nathan T.; Rogers, Jonathan L.; Zechman, Sarah L. C.
作者单位：University of Colorado System; University of Colorado Boulder
摘要：Stock exchanges are important intermediaries in how firm information enters price. Trading halts are a key tool, often exercised at the exchanges' discretion, to prevent extraordinary price volatility when new information arrives. We investigate how exchanges use discretion and whether the discretion alters the effectiveness of the halts. We provide evidence consistent with halts reflecting the preferences of listed firms rather than the stated exchange objectives (i.e., minimizing excess vola...
