-
作者：Barron, Orie E.; Schneible, Richard A., Jr.; Stevens, Douglas E.
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; State University of New York (SUNY) System; University at Albany, SUNY; University System of Georgia; Georgia State University
摘要：The increase in investor diversity over the last 35-40 years prompted us to revisit trading volume reactions to earnings announcements and how these reactions vary with firm size. We argue that this increase in investor diversity would likely increase differences in the precision of pre-announcement information around earnings announcements, particularly for large firms. This suggests that the role of earnings announcements in resolving investor disagreement, as reflected in trading volume rea...
-
作者：Han, Bing; Kong, Dongmin; Liu, Shasha
作者单位：University of Toronto; Southwestern University of Finance & Economics - China; Zhongnan University of Economics & Law; Huazhong University of Science & Technology; Jinan University
摘要：We examine the improvements in forecast accuracy that result from analysts' visits to listed companies. We find that company visits significantly enhance the accuracy of the analysts' earnings forecasts for those companies. The benefit from company visits is more pronounced for companies that are more neglected or less accessible and for brokerage firms that face less pressure for optimistic forecasts from buy-side clients. Our results are robust and remain significant after controlling for en...
-
作者：Li, Na; Wahid, Aida Sijamic
作者单位：Singapore Management University; University of Toronto
摘要：This study examines the impact of director tenure diversity on board effectiveness. We find that tenure-diverse boards exhibit significantly higher CEO performance-turnover sensitivity and that firms with tenure-diverse audit committees are less likely to experience accounting restatements. Furthermore, we document that tenure-diverse compensation committees also award less excess compensation and are less likely to overcompensate. Even though tenure-diverse boards seem to exhibit superior mon...
-
作者：Gao, Ru (Tina); Shivakumar, Lakshmanan; Sidhu, Baljit K.
作者单位：University of Queensland; University of London; London Business School; University of New South Wales Sydney
摘要：Several major stock exchanges, including the NASDAQ and NYSE Euronext, have recently embarked on schemes to sponsor and promote analyst coverage for firms listed on their exchanges. We evaluate the efficacy of one such scheme pioneered by the Singapore Exchange (SGX). We find that sponsored analysts produce forecasts with similar bias, but lower accuracy than those issued by analysts voluntarily following a firm. In analyses that control for self-selection into the SGX Scheme, we find that spo...
-
作者：Hopkins, Justin
作者单位：University of Virginia
摘要：This paper investigates whether a U.S. circuit court ruling that made it easier for public corporations to defend against security class actions led to more misreporting. In a difference-in-differences framework, I find an increase in restatements for firms affected by the ruling relative to unaffected firms. Furthermore, within affected firms, these results are concentrated among those that experienced the lowest abnormal returns in response to the ruling, the firms most likely to face merito...
-
作者：Klein, April
作者单位：New York University
摘要：Chen, Collins, Kravet, and Mergenthaler (CCKM, ) is an empirical investigation of whether, after controlling for other known determinants of an acquirer's abnormal stock returns and expected and realized synergies, financial statement comparability impacts the investment decisions surrounding the acquirer's purchase of another company. The primary result is that higher financial statement comparability, as measured by De Franco, Kothari, and Verdi (DKV, ), yields improvements on outcomes assoc...
-
作者：Backof, Ann G.; Carpenter, Tina D.; Thayer, Jane
作者单位：University of Virginia; University System of Georgia; University of Georgia
摘要：The Public Company Accounting Oversight Board is concerned about auditors' tendency to ignore relevant information that is inconsistent with management's assumptions underlying complex estimates. We find that priming auditors to consider how management arrived at a particular assumption helps curb aggressive reporting by encouraging auditors to engage in low-level, concrete thinking regarding the direct evidence underlying the assumption. Low-level, concrete thinking enhances auditors' sensiti...
-
作者：Mashruwala, Christina; Mashruwala, Shamin
作者单位：University of Alberta
摘要：Prior research documents that, in the presence of investor disagreement, short-sales constraints can lead to equity overvaluation. We examine whether conservative accounting practices reduce the susceptibility to such overpricing, as predicted by Miller (1980). Consistent with Miller's prediction, we find that when shorting constraints and disagreement are high, the degree of overvaluation decreases systematically with accounting conservatism. These findings suggest that financial reporting co...
-
作者：Nam, Seunghan; Ronen, Joshua; Ronen, Tavy
作者单位：Rensselaer Polytechnic Institute; Rutgers University System; Rutgers University Newark; Rutgers University New Brunswick
摘要：Information about an executive's decisions at his/her former employer can have a significant impact on the stock returns of his/her current employer, even after the job change occurs. In this article, we analyze transfers of information, which, we argue, reflect executive decision-making ability as executives change jobs. We examine information about restructurings and write-downs at the new employer emerging after the executive has left an employer that indicates the executive is of lower abi...
-
作者：Bianchi, Pietro A.
作者单位：University of Miami
摘要：This study examines the effect of auditors' collaboration in joint audit engagements on knowledge transfer, auditor expertise, and audit outcomes. I employ a unique sample of Italian private companies whose financial statements are jointly audited by three individual auditors and use measures from the network literature to capture the intensity of interactions between these auditors. I find a positive association between several audit quality proxies and auditors' collaboration in multiple joi...
