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作者：Eugster, Florian
作者单位：Stockholm School of Economics
摘要：Research on the effects of voluntary disclosure quality on the cost of equity capital is often plagued by endogeneity concerns. In this paper, I use a dynamic panel system GMM estimator, which provides internal instruments from the firm's history that directly address endogeneity arising from unobserved heterogeneity and simultaneity. By using hand-collected voluntary disclosure scores for firms listed in the Swiss stock exchange, I examine the dynamic relation between voluntary disclosure qua...
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作者：Pittman, Jeffrey; Zhao, Yuping
作者单位：Memorial University Newfoundland; Virginia Polytechnic Institute & State University; University of Houston System; University of Houston
摘要：Theory suggests that financial report-based debt covenants engender incentives for the manager to relax covenant constraints through accounting choices in order to avoid costly covenant violations. Prior studies directly testing this hypothesis in the context of financial misreporting fail to find consistent evidence. Using a more refined measure of debt covenant restriction, we find that debt covenant restriction is positively associated with the probability of financial statement misstatemen...
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作者：Cohen, Daniel; Pandit, Shailendra; Wasley, Charles E.; Zach, Tzachi
作者单位：Texas A&M University System; Texas A&M University College Station; University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital; University of Rochester; University System of Ohio; Ohio State University
摘要：To test hypotheses about earnings management, many studies investigate managers' manipulation of real activities (real earnings management, REM). Tests using measures of abnormal REM hinge critically on the measurement of normal real activities. Yet, there is no systematic evidence on the statistical properties of commonly used REM measures. We provide such evidence by documenting the Type I error rates and power of the test of the REM measures commonly used in the literature. We find these me...
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作者：Keskek, Sami; Myers, James N.; Myers, Linda A.
作者单位：State University System of Florida; Florida State University; University of Tennessee System; University of Tennessee Knoxville
摘要：Prior studies use fundamental earnings forecasts to proxy for the market's expectations of earnings because analyst forecasts are biased and are available for only a subset of firms. We find that as a proxy for market expectations, fundamental forecasts contain systematic measurement errors analogous to those in analysts' biased forecasts. Therefore, these forecasts are not representative of investors' beliefs. The systematic measurement errors from using fundamental forecasts to proxy for mar...
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作者：Palmon, Dan; Sarath, Bharat; Xin, Hua C.
作者单位：Rutgers University System; Rutgers University Newark; Rutgers University New Brunswick; University of Louisville
摘要：We select a small set of recommendations that lie in the upper and lower tail of the empirical distribution of divergences between a recommendation, and the consensus over the window (-30, -1) days prior to that recommendation. We classify these extremely divergent recommendations as bold, and then subdivide them into informative bold recommendations that lead other analysts (leading-bold) and those that are ignored by other analysts (contra-bold) based on the consensus change in the 30 days a...
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作者：Barker, Richard; Penman, Stephen
作者单位：University of Oxford; Columbia University
摘要：To meet the objectives of financial reporting in the IASB's Conceptual Framework, the balance-sheet approach embraced by the Framework is necessary but not sufficient. Critical, but largely overlooked, is the role of uncertainty, which we argue defines the role of accrual accounting as a distinctive source of information for investors when investment outcomes are uncertain. This role is in some sense paradoxical: on the one hand, uncertainty undermines both the balance sheet (because uncertain...
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作者：Huang, Jing; Krull, Linda; Ziedonis, Rosemarie
作者单位：Virginia Polytechnic Institute & State University; University of Oregon; Boston University
摘要：U.S. multinational corporations increasingly use intra-firm, cross-border research collaboration to disperse R&D across different countries. This paper investigates the implications of such collaboration on the abilities of firms to garner benefits from R&D tax incentives. We find that the association between R&D intensity and tax incentives is three to five times larger when firms have extensive cross-border collaboration connected to a country. We also find that the effect is stronger when l...
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作者：Demere, Paul; Donohoe, Michael P.; Lisowsky, Petro
作者单位：University System of Georgia; University of Georgia; University of Illinois System; University of Illinois Urbana-Champaign; Boston University
摘要：This study provides the first large-sample evidence on the economic tax effects of special purpose entities (SPEs). These increasingly common organizational structures facilitate corporate tax savings by enabling sponsor firms to increase tax-advantaged activities and/or enhance their tax efficiency (i.e., relative tax savings of a given activity). Using path analysis, we find that SPEs facilitate greater tax avoidance such that an economically large amount of cash tax savings from research an...
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作者：Bao, May Xiaoyan; Billett, Matthew T.; Smith, David B.; Unlu, Emre
作者单位：University System Of New Hampshire; University of New Hampshire; Indiana University System; Indiana University Bloomington; University of Nebraska System; University of Nebraska Lincoln
摘要：We examine the usefulness of other comprehensive income (OCI) to debt investors in nonfinancial companies. Motivated by Merton's (1974) real options framework, we construct a measure of incremental OCI volatility, designed to capture the effect of OCI on overall firm asset volatility, which is a primary driver of credit risk in Merton's (1974) model. We find that the volatility of incremental OCI influences the likelihood of default, credit ratings, and the cost of debt. Overall, our evidence ...
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作者：Burke, Jenna J.; Hoitash, Rani; Hoitash, Udi
作者单位：University of Colorado System; University of Colorado Denver; Bentley University; Northeastern University
摘要：This paper investigates the common, yet previously opaque, practice of using foreign audit firms (component auditors) to conduct portions of audit work for U.S. public companies. U.S. regulators have expressed concern for the transparency and quality of audits using component auditors. Employing data disclosed in the newly mandated PCAOB Form AP, we find that component auditor use is largely structural, determined by the size and complexity of clients' multinational operations. We do not find ...
