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作者：Louis, Henock; Urcan, Oktay
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; University of London; London Business School
摘要：Dividend payments are generally costly to shareholders. One principal reason for such payments is that they force managers to raise funds in the external capital markets to finance new projects, which presumably reduces their incentives to engage in empire-building activities. We posit that, because accounting conservatism can also mitigate managers' incentives to engage in value-destroying projects, it could reduce the need for dividend payments and the associated costs. Accordingly, we find ...
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作者：Bertomeu, Jeremy
作者单位：City University of New York (CUNY) System; Baruch College (CUNY)
摘要：Should incentive contracts expose the agent to market-wide shocks? Counterintuitively, I show that market risk cannot be filtered out from the compensation and managed independently by the agent. Under plausible risk preferences, the principal should offer a contract in which performance pay increases following a favorable market shock. In the aggregate, however, the effect of market risk on individual contracts diversifies away and the agency problem does not directly affect the cost of capit...
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作者：Westermann, Kimberly D.; Bedard, Jean C.; Earley, Christine E.
作者单位：State University System of Florida; Florida International University; Bentley University; University of New South Wales Sydney; Providence College
摘要：We investigate how auditors learn the technical aspects of their professional role while performing client engagements, and how that learning process has been shaped by changes in societal, economic, and regulatory forces. Prior studies explicitly recognize that auditors need social skills and demeanor consistent with professional norms as well as requisite knowledge, but those studies generally focus on the processes through which new auditors are molded toward consistency with social norms. ...
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作者：Kim, Yongtae; Li, Haidan; Li, Siqi
作者单位：Santa Clara University
摘要：This study examines whether CEO equity incentives have an impact on audit pricing. Prior studies investigate whether CEO equity incentives motivate executives to manage earnings for personal financial gains. Our focus is on whether auditors perceive CEO equity incentives to be associated with greater earnings manipulation risk and incorporate such risk in their pricing decisions. We find that CEO equity portfolio vega is positively related to audit fees after controlling for other determinants...
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作者：Cheng, C. S. Agnes; Huang, Henry He; Li, Yinghua
作者单位：Hong Kong Polytechnic University; Yeshiva University; Arizona State University; Arizona State University-Tempe
摘要：Hedge fund intervention has been associated with many positive corporate changes and is an important vehicle for informed shareholder monitoring. Effective monitoring has also been positively associated with accounting conservatism. Building upon these prior results, we predict an increase in accounting conservatism after hedge fund intervention. We use a large sample of hedge fund activist events and identify control firms with similar likelihoods of being targeted using the propensity score ...
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作者：Doogar, Rajib; Rowe, Stephen P.; Sivadasan, Padmakumar
作者单位：University of Washington; University of Washington Bothell; Tulane University
摘要：We present the first large-sample empirical evidence on U.S. auditors' responses to changes in entity-level audit risk during 2006-2007, the period leading-up to the financial crisis of 2008-2009. Treating fiscal year 2005 engagements as a precrisis benchmark, we find that audit attention during fiscal year 2006 and 2007 bank audit engagements shifted in line with the shifting audit risks. One implication of these findings is that auditors were able to recognize and respond to financial statem...
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作者：Choi, Bobae; Jung, Kooyul; Lee, Doowon
作者单位：University of Newcastle; Ulsan National Institute of Science & Technology (UNIST)
摘要：This paper investigates information leakage from analyst reports prior to their public release. Previous studies document abnormal trading by institutions or short selling before announcement of recommendation changes. Such pre-release abnormal trading is interpreted as evidence of information leakage from analyst reports. However, if sophisticated investors obtain information similar to what analysts have from other sources, abnormal pre-release trading patterns would be observed even if ther...
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作者：Chue, Timothy K.
作者单位：Hong Kong Polytechnic University
摘要：We use a variance decomposition approach to examine why aggregate valuation ratios differ across countries. In a cross-section of 22 developed countries from 1980 to 2009, we find that 50 percent of all cross-country differences in the aggregate price-to-book ratio (P/B) can be explained by cross-country differences in expected future five-year profitability. In the second half of our sample period, this percentage exceeds that of the first half, rising to almost 64 percent. Although internati...
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作者：Bloomfield, Robert; Hodge, Frank; Hopkins, Patrick; Rennekamp, Kristina
作者单位：Cornell University; University of Washington; University of Washington Seattle; Indiana University System; Indiana University Bloomington
摘要：We present 60 experienced credit analysts with financial information for two firms: one that mainly outsources production and one that does not. We find that analysts are better able to identify firm characteristics that make an outsourcer more creditworthy when those characteristics are presented in the same general section of a financial report; either on the face of the financial statements or in the footnotes. Such coordinated presentation reduces the cognitive load necessary for integrati...
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作者：Bedard, Jean; Courteau, Lucie
作者单位：Laval University; Free University of Bozen-Bolzano
摘要：Even though there is a worldwide consensus as to the necessity of an audit of annual financial statements for public companies, there is divergence of views as to the review of interim financial statements. While some jurisdictions make it mandatory (e.g., Australia, France, United States), others allow the review without requiring it (e.g., Canada, United Kingdom). Using a sample of companies listed in Canada, we examine the costs associated with these reviews and the benefits they generate i...
