Contemporary Accounting Research

最新文章

• The Role of Auditor Narcissism in Auditor-Client Negotiations: Evidence from China AI翻译
  作者：Church, Bryan K.; Dai, Narisa Tianjing; Kuang, Xi (Jason); Liu Xuejiao
  作者单位：University System of Georgia; Georgia Institute of Technology; University of International Business & Economics
  摘要：This paper reports the results of three studies (archival, experimental, and qualitative) designed to examine the effects of auditor narcissism on auditor-client negotiations in China. We contend that narcissistic characteristics fuel auditors' competitiveness and embolden them to stand firm in negotiations, potentially lengthening the negotiation process but leading to more conservative negotiation outcomes. As predicted, our archival results suggest that auditor narcissism is positively asso...
• Executives' Legal Records and the Deterrent Effect of Corporate Governance AI翻译
  作者：Davidson, Robert H.; Dey, Aiyesha; Smith, Abbie
  作者单位：Virginia Polytechnic Institute & State University; Harvard University; University of Chicago
  摘要：We study whether the effectiveness of corporate governance mechanisms varies depending on the characteristics of the executives subject to these mechanisms, namely their psychological type, as proxied by their history of legal infractions. In particular, we examine insider trading, where we can compare the trading behavior of different types of executives in the same firm. We find that recordholder executives, that is, those with prior legal infractions, earn significantly higher profits from ...
• The Influence of Corporate Social Responsibility Measures on Investors' Judgments when Integrated in a Financial Report versus Presented in a Separate Report AI翻译
  作者：Bucaro, Anthony C.; Jackson, Kevin E.; Lill, Jeremy B.
  作者单位：University System of Ohio; Case Western Reserve University; University of Illinois System; University of Illinois Urbana-Champaign; University of Kansas
  摘要：This study examines the effect on investors' judgments of corporate social responsibility (CSR) measures when integrated with financial information in a single report versus when presented in a separate CSR report. Advocates for integrated reports argue that CSR information will be perceived as more relevant and have a greater impact on users when observed in an integrated report. However, we provide experimental evidence that CSR measures have greater influence on investors' judgments when in...
• Are Audit Firms' Compensation Policies Associated with Audit Quality? AI翻译
  作者：Ernstberger, Juergen; Koch, Christopher; Schreiber, Eva Maria; Trompeter, Greg
  作者单位：Technical University of Munich; Johannes Gutenberg University of Mainz; State University System of Florida; University of Central Florida
  摘要：We examine how compensation policies of audit firms are associated with audit quality. Specifically, we investigate the effects of the ratio of variable to fixed compensation and the size of the basis for profit sharing (i.e., whether partners share profits in a small or in a large profit pool). For our analyses, we use detailed mandatory disclosure of the compensation policies in German audit firms. We document that compensation policies vary considerably across audit firms. We find that prof...
• The Forewarning Effect of Critical Audit Matter Disclosures Involving Measurement Uncertainty AI翻译
  作者：Kachelmeier, Steven J.; Rimkus, Dan; Schmidt, Jaime J.; Valentine, Kristen
  作者单位：University of Texas System; University of Texas Austin; University System of Georgia; University of Georgia
  摘要：We present experimental evidence suggesting that critical audit matter (CAM) disclosures in the auditor's report involving areas of high measurement uncertainty forewarn users of misstatement risk. Specifically, in our first study with MBA students, financial analysts, and attorneys, we find that CAMs (i) lower premisstatement assessments of confidence in the financial statement area disclosed as a CAM, and (ii) lower assessments of auditor responsibility for a subsequently revealed misstateme...
• The Switch-Up: An Examination of Changes in Earnings Management after Receiving SEC Comment Letters AI翻译
  作者：Cunningham, Lauren M.; Johnson, Bret A.; Johnson, E. Scott; Lisic, Ling Lei
  作者单位：University of Tennessee System; University of Tennessee Knoxville; George Mason University; Virginia Polytechnic Institute & State University
  摘要：The SEC has long asserted that earnings management practices result in adverse consequences for investors. We examine whether SEC oversight affects firms' accounting quality in terms of earnings management trade-offs. We expect that increased firm-specific regulatory scrutiny, in the form of an SEC comment letter, will induce management to switch from accrual-based earnings management (AEM), which is a main focus of the SEC, to real-activities-based earnings management (REM), which is not like...
• The Role of Narcissistic Hypocrisy in the Development of Accounting Estimates AI翻译
  作者：Hayes, Matthew J.; Reckers, Philip M. J.
  作者单位：University of Michigan System; University of Michigan; Arizona State University; Arizona State University-Tempe
  摘要：In an experiment including experienced managers, we investigate how supervisor and subordinate narcissism influence a supervisor's review of a subordinate's accounting estimate. While narcissistic supervisors express greater liking for narcissistic subordinates (narcissistic tolerance), they nonetheless reject and revise the accounting estimates of narcissistic subordinates to a greater extent than they reject estimates of non-narcissistic subordinates (narcissistic hypocrisy), even when doing...
• Trader Participation in Disclosure: Implications of Interactions with Management AI翻译
  作者：Elliott, W. Brooke; Grant, Stephanie M.; Hobson, Jessen L.
  作者单位：University of Illinois System; University of Illinois Urbana-Champaign; University of Washington; University of Washington Seattle
  摘要：Technological advances are creating a shift in the information disclosure environment allowing more investors to interact with management. We examine three key levels of trader-management interaction to assess the accuracy of traders' market-tested value estimates and resulting market price. These data require an engaging experiment and a complex, contextually rich asset, which we create by playing a popular gaming app before the experiment. Participants view financial information, ask managem...
• Does Accounting Conservatism Discipline Qualitative Disclosure? Evidence From Tone Management in the MD&A AI翻译
  作者：D'Augusta, Carlo; DeAngelis, Matthew D.
  作者单位：Middle Tennessee State University; University System of Georgia; Georgia State University
  摘要：We investigate whether accounting conservatism, which has been found to be effective in constraining management opportunism in other settings, constrains upward tone management (UTM) in the Management's Discussion and Analysis (MD&A) portion of the 10-K filing. We hypothesize that conservatism makes it harder for managers to opportunistically downplay bad news and magnify good news when discussing current performance. Consistent with this hypothesis, we find that UTM is negatively associated w...
• Bank Monitoring and Financial Reporting Quality: The Case of Accounts Receivable-Based Loans AI翻译
  作者：Frankel, Richard; Kim, Bong H.; Ma, Tao; Martin, Xiumin
  作者单位：Washington University (WUSTL); Seoul National University (SNU); Texas Tech University System; Texas Tech University
  摘要：Using novel receivable-based loan data, we study the effect of aging-report loan covenants on borrowers' accounts receivable reporting quality. Our purpose is to highlight a channel that lenders use to obtain private information and to understand whether lenders' information acquisition affects the financial reporting quality of borrowers. Compared to receivable-based borrowers without aging-report requirements (control firms), borrowers with such requirements (test firms) increase their recei...