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作者：Xue, Hao; Zheng, Ronghuo
作者单位：Duke University; University of Texas System; University of Texas Austin
摘要：This paper examines how a firm adjusts its disclosure quality in response to technological innovations that improve investors' private information. We show that more precise private information can endogenously amplify supply shocks and, hence, increase noise driven (or non-fundamental) price volatility. We study how the firm reacts to such changes and derive a necessary and sufficient condition under which the firm improves its disclosure quality when investors are informed with better privat...
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作者：DeFond, Mark; Hu, Jinshuai; Hung, Mingyi; Li, Siqi
作者单位：University of Southern California; Xiamen University; Hong Kong University of Science & Technology; Santa Clara University
摘要：We study the effect of fair value accounting on the association between net income and cash pay following the 2005 worldwide adoption of IFRS. We find that, while IFRS's non-fair-value provisions are associated with an increase in this association, its fair value provisions are associated with a decrease in this association. Overall, we contribute to the literature on the usefulness of fair value accounting by presenting evidence that fair value accounting is associated with a decrease in this...
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作者：Erhard, Ryan; Sloan, Richard G.
作者单位：University of Southern California
摘要：Chordia and Miao (2020) provide evidence that low-latency trading (LLT) improves the long-term informational efficiency of stock prices. This discussion raises two primary concerns with their analysis. First, the mechanism through which LLT enhances long-term efficiency is unclear. Second, CM's measure of LLT trading activity is correlated with non-LLT trading activity, which may in turn cause the documented improvements in efficiency. We close by proposing an alternative explanationdchanges i...
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作者：Banerjee, Snehal; Breon-Drish, Bradyn; Engelberg, Joseph
作者单位：University of San Diego
摘要：In their review of investor processing costs, Blankespoor, deHaan, and Marinovic (2020) encourage researchers to consider rational inattention as a way to explain stock market underreaction to public information. We formalize their argument and propose alternatives using a set of formal models. To distinguish between the various drivers of under reaction, we encourage future researchers to consider the opportunity cost of being inattentive, the historical evolution of underreaction, and the di...
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作者：Barua, Abhijit; Lennox, Clive; Raghunandan, Aneesh
作者单位：State University System of Florida; Florida International University; University of Southern California; University of London; London School Economics & Political Science
摘要：Many studies report that audit fees are discounted in the year of an auditor change and regulators have long been concerned that such fee discounting could impair audit quality. We find significant bias in the way studies have tested for fee discounting. The bias exists because interim procedures are usually performed by both the predecessor and successor auditors but only the successor's fee needs to be disclosed. Accordingly, the disclosed fee during the auditor change year usually relates t...
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作者：Bonsall, Samuel B.; Green, Jeremiah; Muller, Karl A., III
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; Texas A&M University System; Texas A&M University College Station
摘要：We investigate whether increased investor demand for financial information arising from higher market uncertainty leads to greater media coverage of earnings announcements. We also investigate whether greater coverage during times of higher uncertainty further destabilizes financial markets because of greater attention-based trading or, alternatively, improves trading and pricing by lowering investor acquisition and interpretation costs. When uncertainty is higher, we find evidence of greater ...
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作者：Du, Kai; Huddart, Steven; Xue, Lingzhou; Zhang, Yifan
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; U.S. Securities & Exchange Commission (SEC); Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
摘要：We propose and validate a new measure of earnings quality based on a hidden Markov model. This measure, termed earnings fidelity, captures how faithful earnings signals are in revealing the true economic state of the firm. We estimate the measure using a Markov chain Monte Carlo procedure in a Bayesian hierarchical framework that accommodates cross-sectional heterogeneity. Earnings fidelity is positively associated with the forward earnings response coefficient. It significantly outperforms ex...
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作者：Laux, Volker; Ray, Korok
作者单位：University of Texas System; University of Texas Austin; Texas A&M University System; Texas A&M University College Station
摘要：We study how biases in financial reporting affect managers' incentives to develop innovative projects and to make appropriate investment decisions. Conservative reporting practices impose stricter verification standards for recognizing good news, and reduce the chance that risky innovations will lead to favorable future earnings reports. Holding all else constant, more conservative reporting therefore weakens the manager's incentive to work on innovative ideas, consistent with informal argumen...
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作者：Holthausen, Robert W.; Core, John E.; Hanlon, Michelle; Guay, Wayne; Wu, Joanna; Lang, Mark
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作者：Durnev, Art; Mangen, Claudine
作者单位：University of Iowa; Concordia University - Canada
摘要：We explore whether disclosures in the Management Discussion & Analysis (MD&A) have spillover effects for investment and investment efficiency, and whether spillover effects vary with competition. We focus on the tone of MD&A disclosures and document that the association between a company's investments and the tone of its rivals' MD&A disclosures is positive. Moreover, this association is moderated by competition; it is stronger when firms operate in industries that have lower entry costs, are ...
