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作者：Bertomeu, Jeremy; Darrough, Masako; Xue, Wenjie
作者单位：City University of New York (CUNY) System; Baruch College (CUNY); Carnegie Mellon University
摘要：This paper examines the role of conservatism when an agent can manipulate upcoming earnings before all uncertainty is resolved. An increase in conservatism, by reducing the likelihood of favorable earnings, requires steeper performance pay to maintain the same level of incentives, which in turn increases the equilibrium earnings manipulation. Trade-offs between inducing effort and curbing manipulation predict an interior level of conservatism as optimal. The optimal level of conservatism is po...
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作者：Kim, Jaewoo; Lee, Kyeong Hun; Lie, Erik
作者单位：University of Rochester; Norwegian School of Economics (NHH); University of Iowa
摘要：Consistent with the notion that dividends are very sticky, Daniel, Denis, and Naveen () report evidence that firms manage earnings upward when pre-managed earnings are expected to fall short of dividend payments. However, we find that this evidence is not robust when controlling for firms' tendency to manage earnings upward to avoid reporting earnings declines; only firms with high leverage exhibit a statistically weak tendency to manage earnings to close deficits of pre-managed earnings relat...
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作者：Lobo, Gerald J.; Paugam, Luc; Zhang, Dana; Casta, Jean Francois
作者单位：University of Houston System; University of Houston; ESSEC Business School; Universite PSL; Universite Paris-Dauphine
摘要：Using a sample of firms from France, where the law requires the use of two auditors, we study the effect of auditor pair composition on audit quality by examining a specific account, goodwill impairment. We document that firms audited by a Big 4-non-Big 4 auditor pair (BS) are more likely to book an impairment and book a larger impairment than firms audited by a Big 4-Big 4 auditor pair (BB) when low-performance indicators suggest a greater likelihood of impairment. Moreover, firms audited by ...
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作者：Callen, Jeffrey L.; Fang, Xiaohua
作者单位：University of Toronto; State University System of Florida; Florida Atlantic University
摘要：This study examines whether the term of the auditor-client relationship (i.e., auditor tenure) is associated with future stock price crash risk measured both ex ante and ex post. Using a large sample of U.S. public firms with Big 4 auditors, we find robust evidence that auditor tenure is negatively related to one-year-ahead stock price crash risk. The evidence is consistent with monitoring-by-learning where development of client-specific knowledge over the term of the auditor-client relationsh...
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作者：Bonsall, Samuel B.; Koharki, Kevin; Watson, Luke
作者单位：University System of Ohio; Ohio State University; Washington University (WUSTL); State University System of Florida; University of Florida
摘要：This study investigates the role of tax avoidance in the credit-rating process and whether differences exist in how rating agencies account for the risk relevance of tax avoidance. Using a sample of initial credit ratings assigned to public debt issuances during 1994-2013, our evidence is consistent with Moody's Investors Service and Standard & Poor's assessing the costs and benefits associated with tax avoidance differently from one another, resulting in more frequent and pronounced rating ag...
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作者：Elliott, W. Brooke; Grant, Stephanie M.; Rennekamp, Kristina M.
作者单位：University of Illinois System; University of Illinois Urbana-Champaign; University of Washington; University of Washington Seattle; Cornell University
摘要：Firms' Corporate Social Responsibility (CSR) reports typically frame their strategies in terms of either community or global efforts (i.e., strategy frame). Further, the style used to depict CSR performance in reports often highlights either pictures or words (i.e., presentation style). These two prominent disclosure features of CSR reports promote a natural fit or misfit in the focus (relatively low-level or high-level focus) investors adopt when thinking about the firm and its CSR efforts. F...
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作者：Carter, Mary Ellen; Franco, Francesca; Gine, Mireia
作者单位：Boston College; University of London; London Business School; University of Navarra; IESE Business School
摘要：Using a large sample of executives in S&P 1500 firms over 1996-2010, we document significant salary and total compensation gaps between female and male executives and explore two possible explanations for the gaps. We find support for greater female risk aversion as one contributing factor. Female executives hold significantly lower equity incentives and demand larger salary premiums for bearing a given level of compensation risk. These results suggest that females' risk aversion contributes t...
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作者：Rupar, Kathy
作者单位：State University System of Florida; University of Florida
摘要：I investigate whether the alignment between individual investors' expectations about forecast precision and actual forecast precision affects their estimates of firm value, and whether this relationship is mediated by individual investors' perceptions of management credibility and future firm growth. Experimental results confirm that when expected and actual forecast precision align, individual investors estimate higher firm stock prices than when expected and actual forecast precision do not ...
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作者：Huddart, Steven
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
摘要：Guo, Libby, and Liu (2017) (hereafter GLL), examine how pairs of experimental subjects interact in a game framed as a funding request from a privately informed subordinate to a superior. When the superior's pay is higher than the subordinate's, subordinates display more self-serving dishonesty and superiors are more tolerant of it than when their pay is the same. In this discussion, I compare GLL's design with an ultimatum game, consider additional tensions that arise in pay-level comparisons,...
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作者：Das, Somnath; Kim, Kyonghee; Patro, Sukesh
作者单位：University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital; Michigan State University; Northern Illinois University
摘要：We study circumstances when analysts' forecasts diverge from managers' forecasts after management guidance, and the consequences of this divergence for investors and analysts. Our results show that investors' return response to earnings surprises based on analyst forecasts is significantly weaker when analyst and management forecasts diverge, and that this attenuating effect is stronger when the management forecast is more credible. When the divergent management forecast is more accurate than ...
