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作者：Bonacchi, Massimiliano; Cipollini, Fabrizio; Zarowin, Paul
作者单位：Free University of Bozen-Bolzano; University of Florence; New York University
摘要：We find evidence consistent with Italian nonlisted subsidiaries engaging in accrual and real earnings management, so that their listed parents can meet or beat benchmarks. Thus, the parent firm drives the earnings management of the subsidiaries. We identify parents that are more likely to have managed earnings as the ones that avoid a small loss or meet or beat analyst forecast by a few cents. Cross-sectional analysis reveals that Big 4 auditors mitigate accrual earnings management at the subs...
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作者：Deng, Saiying; Li, Yutao; Lobo, Gerald J.; Shao, Pei
作者单位：Southern Illinois University System; Southern Illinois University; University of Lethbridge; University of Houston System; University of Houston
摘要：We examine whether initial loan sales in the secondary loan market relate to borrowing firms' accounting conservatism. We find that borrowing firms exhibit a significant decline in accounting conservatism after the initial loan sales. We show that the decline in borrower conservatism is more pronounced for firms that borrow from lenders with lower monitoring incentives and for firms that have lower incentives to supply conservatism. The baseline results are robust to a battery of sensitivity t...
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作者：Zhang, Ivy Xiying; Zhangs, Yong
作者单位：University of Minnesota System; University of Minnesota Twin Cities; Hong Kong Polytechnic University
摘要：We exploit the setting of first-time enforcement of insider trading laws to investigate the relationship between insider trading opportunities and insiders' supply of information. Insider trading opportunities motivate insiders to reduce their supply of information by concealing firm performance, thereby increasing their information advantage over outsiders, resulting in higher insider trading profits. Using data from 40 countries over the 1988-2004 period, we find that reporting opacity, as c...
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作者：Beck, Matthew J.; Francis, Jere R.; Gunn, Joshua L.
作者单位：Michigan State University; University of Missouri System; University of Missouri Columbia; University of Technology Sydney; Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh
摘要：Prior research emphasizes the centrality of audit offices in understanding auditing practices, and documents significant interoffice variation in audit outcomes based on industry expertise and office size. Our study examines how two city-specific labor characteristics also affect audit offices and local audit markets: the city's average educational attainment, and the number of accountants in a city, which proxy for a city's human capital. Our argument draws on the urban economics literature a...
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作者：Cassell, Cory A.; Myers, Linda A.; Schmardebeck, Roy; Zhou, Jian
作者单位：University of Arkansas System; University of Arkansas Fayetteville; University of Tennessee System; University of Tennessee Knoxville; University of Hawaii System
摘要：We investigate the relation between audit committee co-option and financial reporting quality, where audit committee co-option is measured as the proportion of audit committee members who joined the board after the appointment of the current Chief Executive Officer (CEO). Because CEOs are often actively involved in the director nomination and selection process, we expect that higher levels of audit committee co-option will be associated with less effective monitoring, as evidenced by more fina...
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作者：Duellman, Scott; Guo, Jun; Zhang, Yan; Zhou, Nan
作者单位：Saint Louis University; Rutgers University System; Rutgers University Camden; Rutgers University New Brunswick; State University of New York (SUNY) System; Binghamton University, SUNY; University System of Ohio; University of Cincinnati
摘要：We document the existence of expertise rents by finding that financial experts on audit committees obtain higher abnormal returns from insider purchases than do non-financial experts on audit committees. We further investigate whether information processing skills work alone or jointly with an information advantage to generate expertise rents. While financial experts on audit committees outperform financial experts on other committees, financial experts on compensation, executive, nominating, ...
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作者：Zhang, Joseph H.
作者单位：University of Memphis
摘要：Accounting comparability among peer firms in the same industry reflects the similarity and the relatedness of firms' operating environments and financial reporting. From the perspectives of inherent audit risk and external information efficiency, comparability is helpful for auditors in assessing client audit risk and lowers the costs of information acquisition, processing, and testing. I posit that the availability of information about comparable clients helps improve audit efficiency and acc...
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作者：Casas-Arce, Pablo; Holzhacker, Martin; Mahlendorf, Matthias D.; Matejka, Michal
作者单位：Arizona State University; Arizona State University-Tempe; Michigan State University; Frankfurt School Finance & Management
摘要：When targets depend on past performance, incentives are adversely affected by the ratchet effect. We provide theory and evidence that incorporating past peer performance into targets can alleviate this adverse incentive effect. In particular, we present an analytical model that characterizes optimal target revisions as a function of past own and past peer performance. We then test the predictions of our model using data on 2008-2010 performance targets from 354 units of a governmental agency r...
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作者：Chen, Feng; Hou, Yu; Richardson, Gordon; Ye, Minlei
作者单位：University of Toronto; Queens University - Canada
摘要：This paper hypothesizes and finds that firms audited by city-industry specialists have more timely disclosures of contingent losses from litigation when there is no news coverage relating to the legal case prior to management disclosures. A closer examination reveals that this result is explained by the specialist auditors' prior experience auditing clients in the same office and industry who are involved with litigation. In our setting, disclosures of litigation-related contingent losses, we ...
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作者：Fitzgerald, Brian C.; Omer, Thomas C.; Thompson, Anne M.
作者单位：Northeastern University; University of Nebraska System; University of Nebraska Lincoln; University of Illinois System; University of Illinois Urbana-Champaign
摘要：This study examines the effects of audit partner tenure and audit partner changes on internal control reporting quality for large U.S. not-for-profit (NFP) organizations. Regulators contend that audit partners lose their objectivity over successive audits, reducing audit quality. A large body of research has examined this issue, primarily in non-U.S. jurisdictions, with mixed results. We examine the associations between audit partner tenure and audit partner changes and the incidence of report...
