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作者：De Waegenaere, Anja; Sansing, Richard; Wielhouwer, Jacco L.
作者单位：Tilburg University; Dartmouth College; Vrije Universiteit Amsterdam
摘要：The fact that incumbent firms can immediately deduct research and development (R&D) investments from taxable income is generally believed to give them a strategic advantage over new firms that cannot deduct the investment cost, but instead generate a net operating tax loss carryover. Using an analytical model, we show that this conventional wisdom need not hold in a competitive environment. We examine operating and investment decisions in a duopolistic industry in which an initial investment i...
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作者：Amin, Keval; Eshleman, John Daniel; Guo, Peng
作者单位：State University of New York (SUNY) System; Stony Brook University; Rutgers University System; Rutgers University New Brunswick; Rutgers University Camden
摘要：High investor sentiment has been linked with opportunistic managerial behavior in the face of more optimistic investors and analysts. We extend this line of work by documenting that the likelihood of misstatements is higher when sentiment is high. Although this would suggest elevated audit risk, we posit that a contemporaneous reduction in auditors' litigation cost could drive down audit fees and going concern opinion (GCO) reporting conservatism in order to please clientele. Consistent with t...
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作者：Hsu, Charles; Wang, Rencheng
作者单位：Hong Kong University of Science & Technology; Singapore Management University
摘要：Bundling managerial earnings guidance with quarterly earnings announcements (EAs) has become an increasingly common practice. This study investigates the impact of bundled guidance on analysts' forecast revisions. Our findings indicate that analysts respond more to bundled guidance than non-bundled guidance. This effect increases with analysts' time pressure and cognitive constraints around the EA. Analysts' revisions also incorporate more of the bundled management guidance when accompanied by...
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作者：Hurley, Patrick J.; Mayhew, Brian W.; Obermire, Kara M.; Tegeler, Amy C.
作者单位：Northeastern University; University of Wisconsin System; University of Wisconsin Madison; Oregon State University; University of Wisconsin System; University of Wisconsin Milwaukee
摘要：This study uses experimental economic markets to investigate the impact of risk and the potential for loss on managers' demand for audit quality. We posit that these two important contextual factors influence managers' audit quality preferences. We study these factors because they are ubiquitous to companies, and we focus on their influence on managers because managers continue to play a significant role in the auditor hiring process and we know relatively little about their auditor preference...
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作者：Overesch, Michael; Wolff, Hubertus
作者单位：University of Cologne
摘要：We analyze the effect of mandatory financial transparency on corporate tax avoidance. The effectiveness of comprehensive tax transparency, in the form of a public country-by-country reporting, to mitigate corporate tax planning is largely unknown. Capital Requirements Directive IV by the European Commission required multinational banks to publish key financial and tax data in the form of public country-by-country reporting. We examine tax avoidance of banks around the reform. Our focus is on m...
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作者：Gong, Guojin; Qu, Hong; Tarrant, Ian
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; University System of Georgia; Kennesaw State University; State University of New York (SUNY) System; University at Buffalo, SUNY
摘要：When information asymmetry is a major market friction, earnings forecasts can lead to higher price efficiency even after the information in forecasts completely dissipates upon earnings realizations. We show this in an experimental market that features information asymmetry (i.e., some traders possess differential private information). Earnings forecasts reduce information asymmetry and lead to prices that reflect a greater amount of private information. Traders can learn more about others' in...
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作者：Heo, Jin Suk; Kwon, Soo Young; Tan, Hun-Tong
作者单位：Hongik University; Korea University; Korea University; Nanyang Technological University
摘要：Using detailed data for fieldwork hours and audit hours by rank from audit engagements in Korea, we examine whether audits conducted under workload imbalance, proxied by busy-season audits, impair audit quality, and how auditors adjust staff assignments for busy-season audits. We generally find that busy-season audits are associated with lower audit quality, and that audit firms reduce the involvement of senior auditors during busy-season audits. In addition, the greater the involvement of sen...
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作者：Arya, Anil; Ramanan, Ram N. V.
作者单位：University System of Ohio; Ohio State University; State University of New York (SUNY) System; Binghamton University, SUNY
摘要：The centrality of private information in the design of accounting institutions has been explored via agency models that address control concerns as well as disclosure models that amplify valuation issues. This paper derives disclosures by an entrepreneur-owner when both control and valuation concerns are in play. In particular, the disclosures influence stock price not only via a direct impact on valuation of the firm's revenue but also via an indirect impact on the firm's cost of procuring in...
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作者：Akamah, Herita; Shu, Sydney Qing
作者单位：University of Nebraska System; University of Nebraska Lincoln; University System of Ohio; Miami University
摘要：Although large shareholders have sufficient influence to engage privately with management, extant literature provides inconclusive evidence on the relation between large equity positions and corporate disclosure. This study examines whether large shareholders' portfolio diversification affects voluntary corporate disclosure. We define diversification as the extent to which investors spread investments among portfolio stocks. We predict that holding a diversified portfolio deters large sharehol...
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作者：Pickerd, Jeffrey; Piercey, M. David
作者单位：University of Mississippi; University of Massachusetts System; University of Massachusetts Amherst
摘要：We examine how jurors' negligence judgments and attorneys' out-of-court settlements are differently impacted by two features of a materially misstated accounting estimate-the amount of estimate uncertainty and whether the misstated account is disaggregated into its own line-item or aggregated with other accounts into a single financial statement line-item. We predict and find that jurors and attorneys react to estimate uncertainty in opposite directions under common conditions. This finding is...
