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作者：Bauer, Andrew M.; Fang, Junxiong; Pittman, Jeffrey; Zhang, Yinqi; Zhao, Yuping
作者单位：University of Waterloo; Fudan University; Memorial University Newfoundland; American University; University of Houston System; University of Houston
摘要：In measuring tunneling with intercorporate loans disclosed by Chinese listed companies, we analyze the underlying channels through which aggressive tax planning facilitates the diversion of corporate resources by firm insiders. Using path analysis, we document that the path from tax aggressiveness to related loans is mediated by both the additional cash flows from tax savings and the increased financial opacity from tax planning, and that additional cash flows plays a much more important role ...
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作者：Chen, Xia; Cheng, Qiang; Luo, Ting; Yue, Heng
作者单位：Singapore Management University; Tsinghua University
摘要：We examine how short sellers affect long-run management forecasts using a natural experiment (Regulation SHO) that relaxes short-selling constraints on a group of randomly selected firms (referred to as pilot firms). We find that compared to other firms, the pilot firms issue more long-run good news forecasts but do not change the frequency of long-run bad news forecasts. The increase in good news forecasts is greater when the pilot firms have higher-quality forecasts, greater uncertainty abou...
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作者：Johnson, Joseph A.; Theis, Jochen; Vitalis, Adam; Young, Donald
作者单位：State University System of Florida; University of Central Florida; University of Duisburg Essen; University of Waterloo; Indiana University System; Indiana University Bloomington
摘要：Recent accounting research indicates that capital markets price firms' greenhouse gas (GHG) emissions and that disclosed emissions levels are negatively associated with firms' market values. The departure point for this study is to investigate whether investors value firms differently based on the strategies firms use to mitigate GHG emissions. These strategies include making operational changes, which reduces emissions attributable to the firm, and purchasing offsets, which reduces emissions ...
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作者：Lee, Woo-Jong; Pittman, Jeffrey; Saffar, Walid
作者单位：Seoul National University (SNU); Memorial University Newfoundland; Hong Kong Polytechnic University
摘要：By analyzing a large panel of elections in 55 countries, we show that political uncertainty surrounding elections can affect asymmetric cost responses to activity changes (i.e., cost stickiness). In comparison to non-election years, we find that the asymmetry in cost behaviors is stronger during election years in regressions that control for other firm-level and country-level determinants. In another series of tests, we report strong, robust evidence supporting the predictions that the importa...
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作者：Larocque, Stephannie A.; Martin, Melissa A.; Walther, Beverly R.
作者单位：University of Notre Dame; University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital; Northwestern University
摘要：We investigate the extent to which market participants use compensation payouts released in the DEF 14A proxy statement (DEF14A) to assess future firm performance by examining sell-side analysts' earnings forecasts. Consistent with prior work, we confirm that CEO compensation unexplained by current observable economic factors is positively associated with future firm performance. We find that both the likelihood that analysts revise their forecasts following release of the DEF14A and the magni...
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作者：Darrough, Masako; Huang, Rong; Zhao, Sha
作者单位：City University of New York (CUNY) System; Baruch College (CUNY); Fudan University; Oakland University
摘要：We examine whether a stock price spillover effect spreads through the method of listing or country of origin and whether this spillover effect changes when investor sentiment shifts. Using a sample of fraud allegations against Chinese companies that became public through Chinese reverse mergers (CRMs), we investigate whether firms that experienced negative spillover effects on their stock prices are those from the same country and/or with the same method of listing as the firms accused of frau...
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作者：Lennox, Clive; Li, Bing
作者单位：University of Southern California; City University of Hong Kong
摘要：We examine how often audit firms are sued in a large sample of accounting lawsuits that allege financial reporting failures. We find an insignificant relation between the likelihood of auditor litigation and restatements, but the likelihood of auditor litigation is strongly related to the types of alleged accounting deficiencies. We also find that the auditor's type influences the probability of the auditor being sued and the size of the payouts from auditor and nonauditor defendants. In parti...
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作者：Krishnan, Ranjani; Mani, Deepa
作者单位：Michigan State University; Indian School of Business (ISB)
摘要：In strategic outsourcing contracts, a substantial portion of implementation occurs at the client's premises and requires integration of effort between the vendor and the client. Compensation design in such contracts involves trade-offs between the higher (lower) incentive properties of fixed-price (cost-plus) contracts and their higher (lower) ex ante contracting and ex post adaptation costs. Uncertainty influences these trade-offs and affects compensation design. We explore the compensation i...
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作者：Wolfe, Christopher J.; Christensen, Brant E.; Vandervelde, Scott D.
作者单位：Texas A&M University System; Texas A&M University College Station; University of Oklahoma System; University of Oklahoma - Norman; University of South Carolina System; University of South Carolina Columbia
摘要：We examine the use of intuition versus analytical thinking in auditor risk assessment using a task that requires auditors to assess a group of impairment indicators. We expect that auditor intuition, rooted in the subconscious, more likely reacts to impairment indicator risk than does auditor analytical thinking. Results from two different experiments support this expectation for less-experienced audit seniors. These seniors are more likely to assess step-zero impairment indicators as signalin...
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作者：Drymiotes, George; Lin, Haijin; Ertimur, Yonca
作者单位：Texas Christian University; University of Houston System; University of Houston; University of Colorado System; University of Colorado Boulder
摘要：We develop a model to examine implications of empowering shareholders to replace directors. We find that shareholder empowerment functions as a double-edged sword. On the one hand, it can weaken ineffective boards' incentive to hold on to their position. On the other hand, it can induce both effective and ineffective boards to behave strategically to avoid a potential dismissal. As a result, empowerment does not necessarily increase firm value; in some cases, empowerment exacerbates the agency...
