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作者：Austin, Ashley A.; Carpenter, Tina D.; Christ, Margaret H.; Nielson, Christy S.
作者单位：University of Richmond; University System of Georgia; University of Georgia; University of Mississippi
摘要：Data analytics is transforming our global markets and significantly impacting the financial reporting environment. We investigate how auditors, company managers, and regulation interact with data analytics and one another to affect the diffusion (i.e., development and spread) of data analytics throughout the financial reporting environment. We interview company managers and their audit partners, as well as additional stakeholders, including regulators. We interpret findings from our interviews...
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作者：Sun, Estelle Y.
作者单位：Boston University
摘要：This paper documents a differential role of R&D versus selling, general, and administrative expenses (SG&A) for real earnings management. The distinction of these two components is important because prior studies mostly examine their combined use, but firms could manipulate them differently given the differing valuation implications. Reduced SG&A is viewed positively by investors as evidence of cost reduction, while reduced R&D is viewed negatively by investors as such expenditures are critica...
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作者：Yeo, Feng
作者单位：University of South Carolina System; University of South Carolina Columbia
摘要：I conduct an experiment with senior executives (CEOs, CFOs, controllers) to examine how their risk disclosure quality, with respect to disclosure volume and specificity, is influenced by three factors: first, whether the disclosure behavior is framed internally by the firm as obtaining a gain or avoiding a loss from disclosure; second, whether the external disclosure regime mandates risk mitigation disclosures that explain how a risk is handled; and third, whether the risk under consideration ...
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作者：Kim, Mark P.; Pierce, Spencer R.; Yeung, Ira
作者单位：University of California System; University of California Los Angeles; State University System of Florida; Florida State University; University of British Columbia
摘要：Prior studies find that delayed earnings announcements tend to communicate unfavorable news, and investors react negatively when firms delay earnings announcements. However, these findings do not explain why investors discount delayed earnings, even after controlling for the earnings news, and why firms sometimes announce good news late. Motivated by theory from Trueman (1990) that attempts to explain these phenomena, we examine whether announcement delays indicate earnings management. We pred...
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作者：DeZoort, Todd; Doxey, Marcus; Pollard, Troy
作者单位：University of Alabama System; University of Alabama Tuscaloosa
摘要：This study evaluates whether auditor use of root cause analysis (RCA) for an identified client misstatement affects auditors' assessments of underlying control issues and materiality in an integrated audit setting. We also test whether auditor cognitive style moderates these effects given prior findings that a misfit between task structure and cognitive style undermines performance. This research is motivated by concerns about integrated audit quality and auditors failing to consider control d...
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作者：Ke, Bin; Zhang, Xiaojun
作者单位：National University of Singapore; Peking University
摘要：We examine the efficacy of public enforcement in weak investor protection countries by examining the outcomes of a comprehensive public enforcement campaign in China. The campaign, launched in 2007, was designed to help enforce China's first mandatory Corporate Governance Code, issued in 2002. The 2007 campaign was characterized by several important features: (i) the campaign required firms to identify their problems before the securities regulators conducted on-site inspections; (ii) the camp...
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作者：Tang, Michael; Wang, Rencheng; Zhou, Yi
作者单位：State University System of Florida; Florida International University; Singapore Management University; Fudan University
摘要：This study examines how managers' use of expectation management is affected by their labor market mobility, which we measure by the enforceability of noncompete provisions in their employment contracts. Exploiting quasinatural experiments, our difference-in-differences analyses provide new causal insights to the growing literature on how managers' career concerns affect their disclosure choices. Consistent with a less mobile labor market imposing more pressure on managers to achieve earnings e...
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作者：Francis, Jere R.; Wang, Wei
作者单位：Maastricht University; University of Technology Sydney; Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University
摘要：We show that when banks and borrowers share the same audit firm, borrowers receive lower interest rates, after controlling for potentially confounding director connectedness. The common auditor effect is observed only for opaque borrowers, and is greatest when the same audit engagement office audits the bank and borrower. A common auditor connection also matters more for longer-tenured auditors, for geographically proximate borrowers, and when the syndicate involves fewer lenders. The effect d...
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作者：He, Yue; Li, Bing; Liu, Zhenbin; Pittman, Jeffrey
作者单位：Shanghai University of Finance & Economics; City University of Hong Kong; Hong Kong Baptist University; Virginia Polytechnic Institute & State University
摘要：We exploit the staggered introduction of the PCAOB's international inspection program to examine the role that the stringency of public audit oversight plays in shaping US institutional investors' home bias. Analyzing a sample of foreign firms listed in the United States, we evaluate whether US institutional investors hold larger equity stakes in these firms-a longstanding issue that reflects investor portfolio decisions-if their auditors are exposed to the threat of a PCAOB inspection. In a d...
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作者：Khurana, Inder K.; Lundstrom, Nathan G.; Raman, K. K.
作者单位：University of Missouri System; University of Missouri Columbia; University of Kansas; University of Texas System; University of Texas at San Antonio
摘要：In this study, we investigate whether the increase in regulatory scrutiny epitomized by the initial PCAOB inspection impacted audit quality differentially for Big 4 and non-Big 4 auditors to better understand the consequences of PCAOB inspections for different audit firm types. Because of competing views on the effect of PCAOB inspections, the relation between PCAOB inspections and the audit quality differential between Big 4 and other auditors is an empirical issue. Empirically, we take the e...
