Contemporary Accounting Research

最新文章

• Asymmetric Learning from Prices and Post-Earnings-Announcement Drift AI翻译
  作者：Choi, Jaewon; Thompson, Linh; Williams, Jared
  作者单位：University of Illinois System; University of Illinois Urbana-Champaign; Yonsei University; University of Texas System; University of Texas El Paso; State University System of Florida; University of South Florida
  摘要：Motivated by research in psychology and experimental economics, we assume that investors update their beliefs about an asset's value upon observing the price, but only when the price clearly reveals that others obtained private information that differs from their own private information. Specifically, we assume that investors learn from the price of an asset in an asymmetric manner-they learn from the price if they observe good (bad) private information and the price is worse (better) than wha...
• The Materiality of Accounting Errors: Evidence from SEC Comment Letters AI翻译
  作者：Acito, Andrew A.; Burks, Jeffrey J.; Johnson, W. Bruce
  作者单位：Michigan State University; University of Notre Dame; University of Iowa
  摘要：We gain unique insights into materiality judgments about accounting errors by examining SEC comment letter correspondence. We document that managers typically use multiple quantitative benchmarks in their materiality analyses, with earnings being the most common benchmark. In most of the cases we review, managers deem the error immaterial despite its exceeding the traditional 5 percent of earnings rule of thumb, often in multiple periods and by a large degree. Instead of attempting to conceal ...
• Are Risk Factor Disclosures Still Relevant? Evidence from Market Reactions to Risk Factor Disclosures Before and After the Financial Crisis AI翻译
  作者：Beatty, Anne; Cheng, Lin; Zhang, Haiwen
  作者单位：University System of Ohio; Ohio State University; University of Arizona; University of Minnesota System; University of Minnesota Twin Cities
  摘要：The SEC's Disclosure Effectiveness Initiative (December 2013) highlights a difference between accounting regulators and academics in their perceptions of Item 1A risk factor disclosure effectiveness. Because most academic evidence relies on pre-financial crisis data, we compare changes in risk factor disclosure informativeness before and after the crisis as a possible explanation for this disconnect. We further explore this discrepancy by considering (i) three classes of market participants, (...
• Do Clients Get What They Pay For? Evidence from Auditor and Engagement Fee Premiums AI翻译
  作者：Moon, James R., Jr.; Shipman, Jonathan E.; Swanquist, Quinn T.; Whited, Robert L.
  作者单位：University of Arkansas System; University of Arkansas Fayetteville; University of Alabama System; University of Alabama Tuscaloosa; North Carolina State University
  摘要：Despite the intuitive appeal, prior research finds mixed evidence on whether higher audit fees translate to superior audit quality. Under the assumption that product differentiation between auditors is based, in large part, on the level of financial statement assurance, we propose more refined measures of excess audit fees that separate auditor premiums from other fee premiums. Consistent with our conjecture, we identify significant variation in audit pricing across auditors (i.e., auditor pre...
• Idiosyncratic Information, Moral Hazard, and the Cost of Capital AI翻译
  作者：Gao, Pingyang
  作者单位：University of Chicago
  摘要：This paper examines the effects of idiosyncratic accounting information on a firm's cost of capital. By embedding a moral hazard problem into a multifirm asset-pricing model, I show that moral hazard distorts the sharing of idiosyncratic risk but does not affect the sharing of systematic risk in the economy. A firm-level improvement in idiosyncratic information reduces the firm's cost of capital even though it does not affect the implied cost of capital inferred from publicly traded shares. Mo...
• IQ and Audit Quality: Do Smarter Auditors Deliver Better Audits? AI翻译
  作者：Kallunki, Jenni; Kallunki, Juha-Pekka; Niemi, Lasse; Nilsson, Henrik
  作者单位：University of Oulu; Aalto University; Stockholm School of Economics
  摘要：This study examines the role of an individual auditor's cognitive ability in delivering high-quality audits. Our results from analyzing archival data from Sweden show that audit partners' IQ scores obtained from psychological tests are positively associated with going-concern audit reporting accuracy and audit fee premiums. We also find some, albeit weak, evidence that audit partners' IQ scores are negatively associated with the income-increasing abnormal accruals of the client. These results ...
• The Interrelation between Audit Quality and Managerial Reporting Choices and Its Effects on Financial Reporting Quality AI翻译
  作者：Patterson, Evelyn R.; Smith, J. Reed; Tiras, Samuel L.
  作者单位：Indiana University System; Indiana University Bloomington
  摘要：Two distinct lines of research have been dedicated to empirically testing how financial reporting quality (measured as the earnings response coefficient or ERC) is associated with management's choice of reporting bias and with audit quality. However, researchers have yet to consider how ERCs are affected by either the auditor's reaction to changes in the manager's reporting bias or the manager's reaction to changes in audit quality. Our study provides theoretical guidance on these interrelatio...
• Discussion of Relative Effects of IFRS Adoption and IFRS Convergence on Financial Statement Comparability AI翻译
  作者：Hopkins, Patrick E.
  作者单位：Indiana University System; Indiana University Bloomington
• Transparency, Information Shocks, and Tax Avoidance AI翻译
  作者：Kerr, Jon N.
  作者单位：University System of Ohio; Ohio State University
  摘要：This study helps provide clarity to the prior mixed findings on the association between financial reporting transparency and tax avoidance by studying the effect that transparency has on tax avoidance in a cross-country sample through aggregate- and firm-level tests. Results using firm- and country-level (aggregate) measures of transparency and tax avoidance show that countries and firms with greater levels of transparency exhibit lower levels of tax avoidance and that the effect of country-le...
• Capitalization of In-Process Research and Development under SFAS 141R and Information Asymmetry AI翻译
  作者：Chung, Hyeesoo (Sally) H.; Hillegeist, Stephen A.; Park, You-Il (Chris); Wynn, Jinyoung P.
  作者单位：California State University System; California State University Long Beach; Arizona State University; Arizona State University-Tempe; Nanyang Technological University; University of Hawaii System; University of Hawaii Manoa; University of Louisiana System; Louisiana Technical University
  摘要：This study examines the effect of capitalizing acquired in-process research and development (IPR&D) on information asymmetry under Statement of Financial Accounting Standards No. 141 (R) (SFAS 141R). SFAS 141R requires acquirers to fully recognize IPR&D at fair value as an indefinite-lived intangible asset until completion or discontinuation of the project. Prior research suggests IPR&D capitalization will result in an improvement in the information environment. In contrast, we find no evidenc...