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作者：Infuehr, Jakob
作者单位：University of Southern Denmark
摘要：Conventional agency theory suggests that firms should benchmark CEO compensation to absorb systemic risk and to more efficiently incentivize executives to work hard. Yet empirical research has found only a modest use of benchmarking in CEO compensation contracts. In this paper, I highlight one weakness of relative performance evaluation (RPE). When earnings management is possible, benchmarking creates stronger incentives for misreporting performance measures compared to benchmark-independent p...
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作者：Boulton, Thomas J.; Braga-Alves, Marcus, V; Chakrabarty, Bidisha
作者单位：University System of Ohio; Miami University; Pace University; Saint Louis University
摘要：Trading volume is increasingly shifting to dark venues, and the causes of this move are not well understood. We examine whether a firm's reporting opacity affects its dark pool trading and provide robust evidence that (partly) explains this volume migration. Exploiting the exogenous variation in home-country reporting opacity in a sample of American Depositary Receipts (ADRs) and using multiple metrics for reporting opacity, we find that greater opacity associates with increased dark pool trad...
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作者：Baugh, Matthew; Hallman, Nicholas J.; Kachelmeier, Steven J.
作者单位：Arizona State University; Arizona State University-Tempe; University of Texas System; University of Texas Austin
摘要：Literature to date reveals relatively little about the role of expertise in auditor selection beyond basic preferences for Big 4 and industry specialist auditors. We hypothesize that audit committees whose members have no Big 4 auditing experience are likely to struggle when interviewing prospective Big 4 partners, leading such committees to draw on superficial, heuristic cues in lieu of conducting more substantive evaluations. To test this prediction, we obtain independent ratings of the faci...
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作者：Guan, Yuyan; Wang, Zheng; Wong, M. H. Franco; Xin, Xiangang
作者单位：Nanyang Technological University; City University of Hong Kong; University of Toronto
摘要：Speakers of weak future-time reference (FTR) languages perceive the future as closer and more imminent. In this study, we examine the important question of whether the FTR properties of languages spoken by investors affect their demand for forward-looking information, thereby influencing corporate management forecast practices in different countries. We predict that investors who speak weak-FTR languages are more concerned about the future prospects of their investments and the ability of comp...
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作者：Godsell, David
作者单位：University of Illinois System; University of Illinois Urbana-Champaign
摘要：Sovereign wealth funds (SWFs) are government-owned institutional investors pursuing political and financial investment objectives. With $8 trillion in assets, SWFs are geopolitical powerbrokers actively participating in global capital markets, yet we know little about the financial reporting consequences of SWF investment. I document evidence supporting the hypothesis that the simultaneous pursuit of political and financial investment objectives renders SWFs weak monitors. Using a staggered di...
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作者：Myers, Linda A.; Schmardebeck, Roy; Seidel, Timothy A.; Stuart, Michael D.
作者单位：University of Tennessee System; University of Tennessee Knoxville; Brigham Young University; Oklahoma State University System; Oklahoma State University - Stillwater
摘要：Although the FASB and IASB conceptual frameworks identify relevance and faithful representation as the fundamental qualitative characteristics of useful information, prior research suggests that revenue recognition accounting standards that restrict managerial discretion resulted in improved faithful representation but reduced relevance. We use the adoption of Accounting Standards Update (ASU) 2009-13 and ASU 2009-14 to examine the effects of increased managerial discretion to accelerate reven...
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作者：Hanlon, Michelle; Yeung, Kelvin; Zuo, Luo
作者单位：Massachusetts Institute of Technology (MIT); City University of Hong Kong; Cornell University
摘要：This paper develops a unified framework to synthesize the growing stream of positive research on the role of individual decision makers in shaping observed accounting phenomena. This line of research recognizes two central ideas in behavioral economics. First, individual behavior depends not only on economic incentives and accessible information but also on individual preferences, abilities, experiences, and other characteristics. Second, the constraints that structure human interactions encom...
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作者：De Simone, Lisa; McClure, Charles; Stomberg, Bridget
作者单位：University of Texas System; University of Texas Austin; Indiana University System; IU Kelley School of Business; Indiana University Bloomington
摘要：As part of the Tax Cuts and Jobs Act (TCJA), the US Congress repealed a long-standing exception that allowed companies to deduct executives' qualified performance-based compensation in excess of $1 million. The purpose of this study is to examine whether Congress achieved its stated objective of reversing a shift in executive compensation away from cash compensation and toward performance pay, which Congress believed led executives to focus on short-term results rather than the long-term succe...
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作者：Jorgensen, Bjorn N.; Li, Jing; Melumad, Nahum D.
作者单位：Copenhagen Business School; Hanken School of Economics; University of Hong Kong; Columbia University
摘要：We examine how a firm's disclosure-audience policy affects investors' expertise acquisition and price informativeness in the market. We distinguish the investors' information advantage due to superior access from that due to superior ability to process information. We show that targeted selective disclosure to sophisticated investors may encourage greater expertise acquisition on the part of investors and lead to more informative prices than either public disclosure or untargeted selective dis...
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作者：Matsumoto, Dawn; Serfling, Matthew; Shaikh, Sarah
作者单位：University of Washington; University of Washington Seattle; University of Tennessee System; University of Tennessee Knoxville
摘要：Because of clear economic links among industry peers, prior work has focused on documenting industry peer effects in various settings. Yet, while links also exist among firms in the same geographic area, few studies document geographic peer effects. We fill this gap by examining whether there are geographic peer effects in management earnings forecasts. We find that the likelihood that a firm voluntarily provides an earnings forecast is sensitive to the extent to which other firms in the same ...
