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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：Kim, Chansog (Francis); Wang, Ke; Zhang, Liandong
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作者：Kim, Jeong-Bon; Li, Bing; Liu, Zhenbin
作者单位：City University of Hong Kong; University of Waterloo; Hong Kong Baptist University
摘要：Using the U.S. Securities and Exchange Commission's mandate of eXtensible Business Reporting Language (XBRL) as a natural experiment, this study investigates whether and how the decreased information-processing costs brought about by XBRL influence firms' breadth of share ownership. We find that the XBRL mandate is associated with an increase in the total number of a firm's shareholders. This finding is consistent with the notion that XBRL facilitates a more transparent environment and decreas...
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作者：Johnson, Lindsay M.; Keune, Marsha B.; Winchel, Jennifer
作者单位：University of Tennessee System; University of Tennessee Knoxville; University System of Ohio; University of Dayton; University of Virginia
摘要：This study examines U.S. auditors' observations of the PCAOB inspection process, and its impact on their work, in order to understand the current U.S. regulatory audit climate. Using 20 interviews with experienced auditors, we consider behavioral factors (e.g., perceived power of and trust in the PCAOB) that can impact the level and form of auditor compliance according to theory from the slippery slope framework on audit regulation (Kirchler et al. 2008; Dowling et al. 2018). Our participants ...
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作者：Schnader, Anne Leah; Bedard, Jean C.; Cannon, Nathan H.
作者单位：Suffolk University; Bentley University; Texas State University System; Texas State University San Marcos
摘要：The financial security of the investing public relies on high-quality service by broker-dealers (BDs), investors' gateway to the financial markets. The SEC has long required auditors to attest to BDs' internal controls and compliance with regulations (including those privately owned). Following the unraveling of the Madoff Ponzi scheme in 2008, the SEC required auditors of all BDs to register with the PCAOB, and Congressional initiatives signaled imminent transition from private (AICPA) to pub...
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作者：Donohoe, Michael P.; Lisowsky, Petro; Mayberry, Michael A.
作者单位：University of Illinois System; University of Illinois Urbana-Champaign; Boston University; State University System of Florida; University of Florida
摘要：Subchapter C of the U.S. Internal Revenue Code levies an entity-level tax on corporate profits, whereas Subchapter S allows corporations meeting specific criteria to elect out of this tax. Despite these differences, C and S corporations regularly compete for customers and capital. We examine whether and the extent to which competition from S corporations influences the future organizational form choice of rival C corporations and explore outcomes of this choice. Using data for 4,462 private U....
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作者：Lisic, Ling Lei; Myers, Linda A.; Pawlewicz, Robert; Seidel, Timothy A.
作者单位：Virginia Polytechnic Institute & State University; University of Tennessee System; University of Tennessee Knoxville; George Mason University; Brigham Young University
摘要：In recent years, public accounting firms have experienced a steady increase in the proportion of their revenues generated from consulting services. Although growth in consulting revenue following the Sarbanes-Oxley Act (SOX) has been generated primarily from services provided to nonaudit clients, regulators have expressed concerns about the potential implications of this increase for audit quality. In contrast, accounting firms assert that the expertise developed by their consulting profession...
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作者：Chen, Can; Kim, Jeong-Bon; Wei, Minghai; Zhang, Hao
作者单位：University of Macau; City University of Hong Kong; Sun Yat Sen University
摘要：This study examines whether and how linguistic information quality (measured by readability) of customer firms' management earnings forecast reports (MEFRs) affects supplier firms' investment quality (measured by investment efficiency). Our analyses reveal that supplier investment efficiency is positively associated with the average linguistic information quality of customers' prior MEFRs, and the positive association between supplier investment efficiency and customer MEFRs' numerical informa...
