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作者：Reid, Lauren C.; Carcello, Joseph V.; Li, Chan; Neal, Terry L.
作者单位：Wake Forest University; University of Tennessee System; University of Tennessee Knoxville; University of Kansas
摘要：While substantial revisions to auditor reporting requirements are being implemented internationally, the impact of these reforms on financial reporting quality is unknown. We exploit the United Kingdom's recent auditor reporting changes and find that the United Kingdom's new reporting regime is associated with an improvement in financial reporting quality as proxied by significant decreases in absolute abnormal accruals and the propensity to just meet or beat analyst forecasts, and a significa...
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作者：Drake, Michael S.; Hales, Jeffrey; Rees, Lynn
作者单位：Brigham Young University; University System of Georgia; Georgia Institute of Technology; Utah System of Higher Education; Utah State University
摘要：We survey a broad group of professionals who use financial statements as part of their job to assess the extent to which they believe financial reports suffer from disclosure overload. Consistent with the claims made by regulators, auditors, and preparers, we find that a significant portion of professional financial statement users believe disclosure overload is a problem. However, this group is in the minority, with about twice as many professional users believing that overload is not a probl...
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作者：Choi, Jong-Hag; Choi, Sunhwa; Myers, Linda A.; Ziebart, David
作者单位：Seoul National University (SNU); Lancaster University; Sungkyunkwan University (SKKU); University of Tennessee System; University of Tennessee Knoxville; University of Kentucky
摘要：We find that financial statement comparability enhances the ability of current period returns to reflect future earnings, as measured by the future earnings response coefficient (FERC). This suggests that comparability improves the informativeness of stock prices and allows investors to better anticipate future firm performance. In addition, using both the FERC and stock price synchronicity tests, we find that comparability increases the amount of firm-specific information (rather than market/...
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作者：Kadous, Kathryn; Proell, Chad A.; Rich, Jay; Zhou, Yuepin (Daniel)
作者单位：Emory University; Illinois State University; University of Illinois System; University of Illinois Urbana-Champaign
摘要：Regulation requires auditors to raise significant audit issues and concerns to the attention of audit engagement leadership and requires leadership to encourage such communication. This research demonstrates, using an experiment and a survey, that audit team members' willingness to speak up about such issues is associated with their intrinsic motivational orientation. Based on this result, we test whether audit leadership can leverage this relationship to increase speaking up, particularly whe...
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作者：Khan, Urooj
作者单位：Columbia University
摘要：I investigate whether fair value accounting can contribute to the banking industry's systemic risk. I focus on the adoption of Statement of Financial Accounting Standard No. 115 (SFAS No. 115), which required available-for-sale (AFS) securities to be recognized at fair value with unrealized gains and losses included in equity through accumulated other comprehensive income. SFAS No. 115 increased banks' regulatory risk because, at the time, calculation of regulatory capital closely conformed wi...
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作者：Ayers, Benjamin C.; Seidman, Jeri K.; Towery, Erin M.
作者单位：University System of Georgia; University of Georgia; University of Virginia
摘要：This study uses a confidential data set of firms assigned to the Internal Revenue Service's Coordinated Industry Case (CIC) program to examine the effect of audit certainty on firms' tax reporting behavior. We first model the determinants of assignment to the program. Although the ability and incentive to avoid taxes are related to CIC assignment, we find that the IRS assigns firms primarily based on size and complexity. We then test whether audit certainty has a detectable effect on tax payme...
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作者：Hannan, R. Lynn; McPhee, Gregory P.; Newman, Andrew H.; Tafkov, Ivo D.; Kachelmeier, Steven J.
作者单位：Tulane University; Clemson University; University of South Carolina System; University of South Carolina Columbia; University System of Georgia; Georgia State University; University of Texas System; University of Texas Austin
摘要：Prior research documents that providing relative performance information (RPI) motivates employees to increase effort; however, a potential downside of RPI is that it also motivates employees to distort their effort allocations between tasks such that it can be detrimental to overall firm performance. This study investigates via an experiment how the informativeness of RPI affects employees' effort allocations and performance in a multitask environment. We investigate the informativeness of tw...
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作者：Kim, Jaewoo; McGuire, Sean T.; Savoy, Steven; Wilson, Ryan
作者单位：University of Rochester; 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 Oregon
摘要：The trade-off literature asserts that managers weigh the direct benefits of tax avoidance against the associated nontax costs. This literature implies each firm has a unique optimal level of tax avoidance that balances these costs and benefits. Our study is the first to document how quickly the average firm moves toward its optimal level of tax avoidance. We find that the typical firm converges toward its optimum at a rate that ranges from approximately 69 to 84 percent over a three-year perio...
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作者：Beardsley, Erik L.; Lassila, Dennis R.; Omer, Thomas C.
作者单位：University of Notre Dame; Texas A&M University System; Texas A&M University College Station; Mays Business School; University of Nebraska System; University of Nebraska Lincoln
摘要：We investigate whether audit offices respond to audit fee pressure by increasing their focus on nonaudit services (NAS), as well as the combined effect of audit fee pressure and an increased focus on NAS on audit quality. We find a positive association between audit fee pressure and changes in NAS at the audit office level. We also find increased rates of client misstatement among audit offices that increase focus on NAS in the presence of audit fee pressure compared to audit offices that do n...
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作者：Deng, Mingcherng; Nan, Lin; Wen, Xiaoyan
作者单位：City University of New York (CUNY) System; Baruch College (CUNY); Purdue University System; Purdue University; Texas Christian University
摘要：In this study, we show that when a firm needs external financing, information quality has real effects via financing contracts on the firm's input to influence its operational outcome. Interestingly, we find that higher information quality decreases overall efficiency. Our analysis highlights the importance of considering the role of information quality in the presence of the firm's input decision upon financing contracts. In particular, information quality has a feedforward effect on the firm...
