-
作者：Saiewitz, Aaron; Wang, Elaine (Ying)
作者单位：Nevada System of Higher Education (NSHE); University of Nevada Las Vegas; University of Massachusetts System; University of Massachusetts Amherst
摘要：In a globalized audit environment, regulators and researchers have expressed concerns about inconsistent audit quality across nations, with a particular emphasis on Chinese audit quality. Prior research suggests Chinese audit quality may be lower than U.S. audit quality due to a weaker institutional environment (e.g., lower litigation and inspection risk) or cultural value differences (e.g., greater deference to authority). In this study, we propose that lower Chinese audit quality could also ...
-
作者：Chan, Kam C.; Jiang, Xuanyu; Wu, Donghui; Xu, Nianhang; Zeng, Hong
作者单位：Zhongnan University of Economics & Law; Western Kentucky University; Central University of Finance & Economics; Chinese University of Hong Kong; Renmin University of China; Chongqing University
摘要：China's split-share reform of 2005 (the Reform) converts the previously restricted shares held by founding shareholders to shares tradable on the open market. Against this backdrop, we study how underwriter-affiliated analysts and firms' large shareholders interact in the event of the latter's sales of restricted shares. We document that recommendations made by affiliated analysts are significantly more optimistic when firms' large shareholders plan to sell their restricted shares. This optimi...
-
作者：Bauer, Tim D.; Hillison, Sean M.; Peecher, Mark E.; Pomeroy, Bradley
作者单位：University of Waterloo; Virginia Polytechnic Institute & State University; University of Illinois System; University of Illinois Urbana-Champaign
摘要：Prior research documents that auditors fail to revise audit plans to effectively address identified fraud cues. While auditors may understand what evidence would address such cues, we propose that auditors fail to apply this understanding because they use implemental mindsets when making decisions for themselves (i.e., deciding). However, we also propose that auditors use deliberative mindsets when advising. To test our predictions, we assign auditors to a decider or an advisor role in a reali...
-
作者：Huang, Jing; Matsunaga, Steven R.; Wang, Z. Jay
作者单位：Virginia Polytechnic Institute & State University; University of Oregon
摘要：We investigate whether potential pension contracting benefits lead institutions that provide pension services to acquire ownership blocks in firms and the implications of such blockholdings on the firms' corporate governance. We use the 2006 Pension Protection Act, which expanded pension participation in certain states, as a quasi-exogenous shock and find an increase in block ownership by pension-providing institutions in firms with substantial operations in affected states. Further, we find t...
-
作者：Berglund, Nathan R.
作者单位：Mississippi State University
摘要：There is a maintained assumption within the accounting literature that client bankruptcies preceded by clean audit opinions (Type II going concern opinion (GCO) errors) damage an auditor's reputation. Consistent with this view, the PCAOB proposes that stakeholders may use Type II GCO errors as indicators of low audit quality. This study examines audit committee and investor responses to Type II GCO errors. I find no evidence that audit offices with Type II GCOs are more likely to be dismissed,...
-
作者：Guiral, Andres; Moon, Doocheol; Tan, Hun-Tong; Yu, Yao
作者单位：Yonsei University; Nanyang Technological University; University of Massachusetts System; University of Massachusetts Amherst
摘要：Recent research finds that investors' assessments of a stock's fundamental value are influenced by corporate social responsibility (CSR) performance through the affect-as-information heuristic. We extend prior research by examining two boundary conditions for the use of this heuristic: (i) whether the CSR performance relates to activities that are integrated in a firm's core business practices (material CSR issues) or not (immaterial CSR issues), and (ii) whether the CSR performance is positiv...
-
作者：Choi, Jin Kyung; Hann, Rebecca N.; Subasi, Musa; Zheng, Yue
作者单位：University System of Maryland; University of Maryland Baltimore; Hong Kong University of Science & Technology
摘要：We examine whether the information conveyed in a relatively new analyst research output-capital expenditure (capex) forecasts-affects corporate investment efficiency. We find that firms with analyst capex forecasts exhibit higher investment efficiency. This effect is stronger when the forecasts are issued by analysts with higher ability or greater industry knowledge. Moreover, the effect of capex forecasts on investment efficiency varies with the signals they convey about future growth opportu...
-
作者：Menon, Rahul
作者单位：Purdue University System; Purdue University
摘要：What incentives drive managers to disclose immediately when they have an option to delay disclosures? I examine this question in a two-period setting in which public news that is positively correlated with firm value arrives periodically. I show that, when the manager's likelihood of receiving information is independent of the public news, an informed manager is more likely to disclose immediately when the public news is good. This happens even as the disclosure threshold itself increases in t...
-
作者：Demerjian, Peter; Donovan, John; Lewis-Western, Melissa F.
作者单位：University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital; University of Notre Dame; Brigham Young University
摘要：We investigate whether income smoothing affects the usefulness of earnings for contracting through the monitoring role of earnings-based debt covenants. First, we examine initial contract design and predict that income smoothing will increase (decrease) the use of earnings-based covenants if income smoothing improves (reduces) the usefulness of earnings to monitor borrowers. We find that private debt contracts to borrowers with greater income smoothing are more likely to include earnings-based...
-
作者：Carcello, Joseph V.; Neal, Terry L.; Reid, Lauren C.; Shipman, Jonathan E.
作者单位：University of Tennessee System; University of Tennessee Knoxville; Wake Forest University; University of Arkansas System; University of Arkansas Fayetteville
摘要：Inadequate testing of fair value accounting estimates, including goodwill, is often cited as an audit deficiency in PCAOB inspection reports, and, in some cases, these deficiencies have led to enforcement actions against the auditor. As a result of these issues, the PCAOB recently proposed a new auditing standard for fair value accounting. While these regulatory actions suggest that auditors are challenged by the fair value regime of accounting for goodwill, they also highlight an area where t...
