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作者：Li, Zhi; Wang, Lingling; Wruck, Karen
作者单位：Chapman University System; Chapman University; University of Connecticut; University System of Ohio; Ohio State University
摘要：We examine how accounting-based compensation plans influence a firm's contracts with its creditors. After granting long-term accounting-based compensation plans (LTAPs) to CEOs, firms pay lower spreads and have fewer restrictive covenants in new bank loans. Mechanisms leading to lower borrowing cost include improvements in debt repayment ability, reduced shareholder-debtholder conflicts, and reduced risk-taking incentives. Creditors view LTAPs as a substitute for monitoring, adjust covenant de...
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作者：Hobson, Jessen L.; Stern, Matthew T.; Zimbelman, Aaron F.
作者单位：University of Illinois System; University of Illinois Urbana-Champaign; DePaul University; University of South Carolina System; University of South Carolina Columbia
摘要：Regulators and researchers have expressed concerns that social interaction leads auditors to unjustifiably trust managers, constituting a lack of sufficient professional skepticism. Using both an abstract laboratory experiment and a contextually rich experiment with practicing auditors we predict and find that higher Dark Triad auditors (those with higher levels of the shared core between psychopathy, narcissism, and Machiavellianism) are relatively more resistant to lapses in professional ske...
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作者：Crawford, Steven; Huang, Ying; Li, Ningzhong; Yang, Ziyun
作者单位：University of Houston System; University of Houston; University of Texas System; University of Texas Dallas; University of Houston System; University of Houston; University of Houston Victoria
摘要：This study examines the association between customer base concentration and corporate public disclosure policy. When the customer base is more concentrated, large customers face lower costs of accessing the supplier firm's private information, reducing customers' overall demand for the supplier's public information, suggesting a negative association between customer concentration and the amount of public disclosure. Alternatively, large customers have greater bargaining power and may demand th...
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作者：Gunny, Katherine A.; Hermis, Judith M.
作者单位：University of Colorado System; University of Colorado Denver; United States Department of Defense; United States Navy; Naval Postgraduate School
摘要：The SEC reviews firm filings and issues comment letters on those filings. These comment letters play an important role in the assessment of firm value. These activities are seasonally compressed because over 70 percent of registrants have a December fiscal year-end. Research in other settings finds that busyness leads to negative outcomes. We examine how busyness impacts the frequency, scope, and timeliness of comment letters. We find that the SEC issues fewer comment letters when busy, focuse...
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作者：Petrov, Evgeny
作者单位：Hong Kong University of Science & Technology
摘要：This study analyzes the impact of informed trading on voluntary corporate disclosure in the presence of two factors: the cost of disclosure and the value of a manager's informedness. In the absence of both factors, informed trading has no impact on disclosure even when traders are not certain whether the manager has information. When disclosure is costly, informed trading serves as a free substitute for the disclosure of favorable information, and reduces disclosure. Surprisingly, when the man...
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作者：Ge, Weili; Matsumoto, Dawn; Wang, Emily Jing; Zhang, Jenny Li
作者单位：University of Washington; University of Washington Seattle; Hong Kong University of Science & Technology; University of British Columbia
摘要：We examine the stock market consequences of disclosing accounting irregularities for U.S.-listed foreign firms. After controlling for the severity of the irregularity and other firm characteristics, we find that foreign firms experience significantly more negative short-window stock market reactions following irregularity announcements than do U.S. firms. Moreover, for a subsample of 64 irregularities of foreign firms that are listed on both a U.S. and home country stock exchange, we find evid...
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作者：Hope, Ole-Kristian; Yue, Heng; Zhong, Qinlin
作者单位：University of Toronto; BI Norwegian Business School; Singapore Management University; Renmin University of China
摘要：We examine the impact of China's anti-corruption campaign on firm-level financial reporting quality (FRQ). As an important component of the anti-corruption campaign, in October 2013, Rule 18 was issued to prohibit party and government officials from serving as directors for publicly listed firms. The regulation led to a large number of official directors resigning from their roles as directors involuntarily. As such, Rule 18 has effectively weakened, if not fully discontinued, the political co...
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作者：Da Costa, Fabio Moraes; Liu, Carol; Rosa, Gina Cavalier; Tiras, Samuel L.
作者单位：FUCAPE Business School; Arizona State University; Arizona State University-Tempe; University of Louisiana System; University of New Orleans; Indiana University System; Indiana University Bloomington
摘要：Bagnoli and Watts (2005) proposed that a manager could reduce information asymmetry by choosing an income-decreasing accounting choice that signals the firm's relatively good future prospects. A limitation in testing this theory is that most income-decreasing accounting choices over time reverse such that aggregated earnings would be the same, regardless of the choice. One income-decreasing accounting choice that never reverses is the choice of upward asset revaluation, where the resulting gai...
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作者：Neuman, Stevanie S.; Omer, Thomas C.; Schmidt, Andrew P.
作者单位：University of Missouri System; University of Missouri Columbia; University of Nebraska System; University of Nebraska Lincoln; North Carolina State University
摘要：This study uses insights from tax practitioners and tax authorities to define and develop an estimate of ex ante tax risk that is independent of common tax outcomes studied in prior literature. Validation tests confirm that our tax risk measure (i) represents the predictable and unpredictable uncertainty inherent in the three sources of tax risk (i.e., economic risk, tax law uncertainty, and inaccurate information processing) and (ii) is a construct different from tax avoidance, tax uncertaint...
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作者：Fedyk, Tatiana; Singer, Zvi; Sougiannis, Theodore
作者单位：University of San Francisco; Universite de Montreal; HEC Montreal; University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital
摘要：We combine a fundamental property of accruals and a behavioral phenomenon to provide an explanation for the accrual anomaly. The fundamental property is accruals that originate must subsequently reverse. The behavioral phenomenon is individuals tend to underestimate the variance of noisy signals in various domains of decision making. We argue that originating accruals represents a noisier signal than reversing accruals because the uncertainty of whether originating accruals will eventually con...
