Contemporary Accounting Research

最新文章

• Network Analysis of Audit Partner Rotation† AI翻译
  作者：Pittman, Jeffreyp; Wang, Lin; Wu, Donghui
  作者单位：Memorial University Newfoundland; Virginia Polytechnic Institute & State University; Central University of Finance & Economics; Chinese University of Hong Kong
  摘要：Focusing on mandatory partner rotations, we examine the importance of within-firm network connections to the selection of successor partners and the impact of those connections on post-rotation audit performance. Using data from China, we track partners' history and identify incumbent-successor connections stemming from jointly conducted prior engagements. Although these connections can enhance incumbent-successor information transfers and thus post-rotation audit performance, they may also po...
• Is R&D Really That Special? A Fixed-Cost Explanation for the Empirical Patterns of R&D Firms AI翻译
  作者：Resutek, Robert J.
  作者单位：University System of Georgia; University of Georgia
  摘要：I propose an explanation for the positive relation between R&D, future earnings, and future stock returns based on the fixed-cost qualities of R&D. If R&D is relatively fixed over short horizons, demand shocks realized by some R&D firms will push these firms into R&D intensity levels that are suboptimal as common scale proxies-market equity, assets, and sales-respond more quickly to demand shocks than R&D. In response, R&D firms realizing negative demand shocks reduce future expenses and capit...
• Motivated Perspective Taking: Why Prompting Auditors to Take an Investor's Perspective Makes Them Treat Identified Audit Differences as Less Material* AI翻译
  作者：Altiero, Elizabeth C.; Kang, Yoon Ju; Peecher, Mark E.
  作者单位：State University System of Florida; University of Central Florida; University of Massachusetts System; University of Massachusetts Amherst; University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital
  摘要：Audit regulators and commentators propose prompting auditors to more fully take an investor's perspective as a remedy to their concern that auditors underreact to material misstatements. By contrast, we predict that prompting auditors in this manner will backfire, making them less (more) heavily weight indicia that misstatements are (not) material. We further predict auditors will apply this asymmetric weighting instrumentally-to a greater degree as needed-to justify management-preferred concl...
• Political Connections and the Trade-Off Between Real and Accrual-Based Earnings Management AI翻译
  作者：Ahmed, Anwer S.; Duellman, Scott; Grady, Megan
  作者单位：Texas A&M University System; Texas A&M University College Station; Saint Louis University; California State University System; California State University Fullerton
  摘要：We provide evidence on the effect of political connections on the trade-off between real and accrual-based earnings management in the United States. This evidence is important because prior literature documents mixed evidence on whether political connections reduce the threat of SEC enforcement. By studying earnings management with a large sample, our study provides more generalizable insights into the effects of political connections on enforcement. We argue that politically connected firms f...
• Analysts' Book Value Forecasts: Initial Evidence from the Perspective of Real-Options-Based Valuation AI翻译
  作者：Hui, Kai Wai; Liu, Alfred Z.; Schneible, Richard A., Jr.; Zhang, Guochang
  作者单位：University of Hong Kong; State University of New York (SUNY) System; University at Albany, SUNY; Grand Valley State University
  摘要：This study examines the usefulness of analysts' book value forecasts and the economic factors driving analysts' issuance of these forecasts. Guided by the real-options-based valuation model (ROM) of Zhang (2000), we explicitly link book value forecasts to the need for such information in valuation. We first establish that analysts' book value forecasts are superior to forecasts that are mechanically imputed from analysts' own earnings forecasts and those from random walk models and are increme...
• Top Management Team Incentive Dispersion and Earnings Quality AI翻译
  作者：Kim, Taejin; Kyung, Hangsoo; Ng, Jeff
  作者单位：Korea University; Hong Kong Polytechnic University; DePaul University
  摘要：This paper examines the relation between the dispersion in pay-performance sensitivities (PPS) among top management team (TMT) members and earnings quality. Prior research suggests that the PPS from executives' equity compensation induce earnings manipulation incentives. Most of this research, however, focuses on the PPS of individual executives, even though the financial reporting process requires the coordination among a broad range of executives. Focusing on the dispersion in PPS among TMTs...
• The Impact of Knowledge Transfer on Investment in Knowledge Creation in Firms†‡ AI翻译
  作者：Tafkov, Ivo; Towry, Kristy; Zhou, Flora Hailan
  作者单位：University System of Georgia; Georgia State University; Emory University; Bentley University
  摘要：Knowledge is key to success in the modern business landscape. Firms invest billions of dollars every year in knowledge management systems, which commonly use artificial intelligence to allow within-firm knowledge transfer to occur automatically. Despite this investment, these systems often fall short of producing expected results. Using psychology theory on goal dilution, we argue that a potential cause of the failure is that the prospect of knowledge transfer has a negative effect on knowledg...
• How Far Will Managers Go to Look Like a Good Steward? An Examination of Preferences for Trustworthiness and Honesty in Managerial Reporting† AI翻译
  作者：Abdel-Rahim, Heba Y.; Hales, Jeffrey; Stevens, Douglas E.
  作者单位：University System of Ohio; University of Toledo; University of Texas System; University of Texas Austin; University System of Georgia; Georgia State University
  摘要：Growing calls for expanded disclosure on managerial stewardship raise important questions about how finer (i.e., disaggregated) reporting, when paired with discretion over classification, will influence managerial behavior. To study this question, we develop an investment game in which, if the investor chooses to invest, the manager privately observes production costs, chooses their personal pay, and provides a cost report in one of three reporting regimes: aggregated, disaggregated without di...
• Who Gets to Play Dirty? Using Legitimacy Theory to Examine Investor Reactions to Differing Modes of Corporate Tax Minimization AI翻译
  作者：Gillette, Davidson B.; Stinson, Shane R.
  作者单位：University of North Carolina; East Carolina University; University of Alabama System; University of Alabama Tuscaloosa
  摘要：This study examines how information about a corporation's tax minimization activities and primary operations jointly influence investor behavior. Prior research identifies fear of investor backlash as a primary curb on corporations' tax minimization. However, evidence for such reactions remains mixed. Drawing on the psychological framework of legitimacy theory, we predict and find that the interaction between operations-level validity and tax-level propriety influences investor behavior. For c...
• A Tale of Two Supervisors: Compliance with Risk Disclosure Regulation in the Banking Sector* AI翻译
  作者：Bischof, Jannis; Daske, Holger; Elfers, Ferdinand; Hail, Luzi
  作者单位：University of Mannheim; Erasmus University Rotterdam - Excl Erasmus MC; Erasmus University Rotterdam; University of Pennsylvania
  摘要：We examine how the presence of multiple supervisory agencies affects firm-level compliance in form and substance with disclosure regulations. This analysis is important because coordination problems among regulators are frequently present in practice but often overlooked in academic research. We exploit that banks are subject to equivalent risk disclosure rules under securities laws (IFRS 7) and banking regulation (Pillar 3 of the Basel II Accord) but that different regulators start enforcing ...