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作者：Li, Xiao; Ng, Jeffrey; Saffar, Walid
作者单位：Central University of Finance & Economics; Hong Kong Polytechnic University
摘要：We investigate the effect of mandatory IFRS adoption on trade credit. We document that firms in countries that adopt IFRS receive more trade credit from their suppliers, consistent with improved financial reporting quality and comparability playing a role in facilitating informal financing. This increase is larger for countries with a low level of societal trust, a poor pre-IFRS-adoption information environment, and stronger legal enforcement. These cross-sectional results suggest that the con...
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作者：Dou, Yiwei; Xu, Zhaoxia
作者单位：New York University
摘要：Understanding the role of bank lending in corporate innovation is important to policymakers, practitioners, and academics. We provide new evidence on such a role by exploiting the implementation of SFAS 166/167, which removed the off-balance sheet status of certain securitized assets of banks. The regulation affects bank lending and thus represents a credit supply shock to borrowing firms. We find that affected banks raise spreads and cut loan amounts after the regulation. Firms that borrow fr...
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作者：Gopalan, Radhakrishnan; Huang, Sheng; Maharaja, Johan
作者单位：Washington University (WUSTL); China Europe International Business School; Rensselaer Polytechnic Institute
摘要：We examine the extent to which deferred vesting of stock and option grants (deferred pay) helps firms retain executives. To the extent an executive forfeits all deferred pay if they leave the firm, deferred vesting will increase the cost (to the executive) of an early exit. The impact of deferred pay on executive retention, a key ingredient for firms to create shareholder value is hence an important empirical issue. Using pay duration proposed in Gopalan et al. (2014) as a measure of the exten...
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作者：Lunawat, Radhika; Waymire, Gregory; Xin, Baohua
作者单位：University of California System; University of California Irvine; Emory University; University of Toronto
摘要：A common view is that verified earnings reports encourage investment through improved transparency. We lack direct evidence on this foundational proposition because researchers cannot observe counterfactuals in which a manager either (i) must remain silent about performance or (ii) can make any statement about performance they desire, even a bald-faced lie. We experimentally manipulate whether a manager can provide information to an investor by voluntarily disclosing a verified earnings report...
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作者：Downey, Denise Hanes; Westermann, Kimberly D.
作者单位：Villanova University; California State University System; California Polytechnic State University San Luis Obispo
摘要：Regulators are concerned about the quality of group audits because of poor inspection results, recent enforcement actions against component auditors, and the significance of these audits to the global economy. Yet research in this area is nascent. In response, we survey and interview US-based global group audit leads to better understand the group audit process and their perceptions of challenges that arise on such engagements. Our findings indicate that group auditors organize their audits co...
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作者：Choudhary, Preeti; Merkley, Kenneth; Schipper, Katherine
作者单位：University of Arizona; Indiana University System; Indiana University Bloomington; Duke University
摘要：We provide large-sample archival evidence on the nature and consequences of errors deemed immaterial to the previously issued financial statements containing the errors (immaterial errors). The incidence of immaterial error corrections has been increasing since about 2004, and these corrections are associated with modestly and discernibly negative share returns that are more negative for income-decreasing corrections and corrections that involve multiple issues. We find that immaterial errors ...
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作者：Ewert, Ralf; Wagenhofer, Alfred
作者单位：University of Graz
摘要：Although internal control over financial reporting has gained increasing regulatory attention, its enforcement is far from perfect; thus, firm-specific incentives to management become important to increase the quality of financial reports. We study how owners can motivate managers to invest in accounting quality even though it is costly to the managers. Using an agency model, we establish that a sufficiently conservative accounting system (which understates performance) is necessary to induce ...
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作者：Cheng, C. S. Agnes; Guo, Peng; Weng, Chia-Hsiang; Wu, Qiang
作者单位：Hong Kong Polytechnic University; Rutgers University System; Rutgers University New Brunswick; National Chengchi University; Rensselaer Polytechnic Institute
摘要：Using a large US sample, we find a significant and positive relation between patents and corporate tax planning, and the effect is incremental to the effect of R&D on tax planning. We employ a quasi-natural experiment based on staggered industry-level innovation shocks to identify the positive causal effect of patents on corporate tax planning. We also find that patents are not associated with tax planning for domestic firms, but their association with tax planning is concentrated in multinati...
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作者：Kuang, Yu Flora; Lee, Gladys; Qin, Bo
作者单位：University of Melbourne
摘要：We investigate whether audit fees and auditors' opinions on internal controls are associated with whistleblowing allegations externally filed to regulatory agencies. We find that firms subject to whistleblowing allegations have significantly higher audit fees, regardless of the substance of these allegations, whereas an auditor is more likely to issue an adverse opinion on internal controls when the allegation is substantiated, rather than frivolous. Further, our findings suggest that auditors...
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作者：Lewellen, Christina M.; Mauler, Landon; Watson, Luke
作者单位：North Carolina State University; State University System of Florida; Florida State University; Villanova University
摘要：Incorporating the firm's corporate parent in a tax haven is a major decision that receives significant attention from many stakeholders, yet certain implications of this corporate strategy remain unclear. While tax haven incorporation offers tax savings, it also imposes risks that are potentially costly and hence important to consider. We predict and find a higher cost of equity capital in firms with parent companies that are incorporated in tax havens but that are primarily based in nonhaven ...
