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作者：Bushee, Brian; Cedergren, Matthew; Michels, Jeremy
作者单位：University of Pennsylvania
摘要：We examine how the media influences retail trade and market returns during the quiet period that follows a firm's IPO. We find that more media coverage during this period is associated with more purchases by retail investors and that such purchases are attention-driven, rather than information-based. Further, these retail trades are negatively associated with stock returns at the firm's first earnings announcement post-IPO. Our results suggest that media coverage, combined with market friction...
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作者：Beaver, William H.; McNichols, Maureen F.; Wang, Zach Z.
作者单位：Stanford University; University of Illinois System; University of Illinois Urbana-Champaign
摘要：We examine the role of concurrent information in the striking increase in investor response to earnings announcements from 2001 to 2016, as measured by return variability and volume following Beaver (1968). We find management guidance, analyst forecasts, and disaggregated financial statement line items are more frequently bundled with earnings announcements, and each of these items explains part of the increase in market response. Furthermore, collectively, these concurrent information release...
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作者：Penman, Stephen; Zhang, Xiao-Jun
作者单位：University of California System; University of California Berkeley; Columbia University
摘要：We connect conservative accounting to the cost of capital by developing an accounting model within an asset pricing framework. The model has three distinctive features: (1) transaction-cycle-conformity, where the book value equals the value of cash at the beginning and the end of a cash-to-cash transaction cycle; (2) a revenue recognition principle, where uncertainty affects the amount of revenues recognized; (3) a matching principle, where expenses are matched with revenue with a conservative...
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作者：Costello, Anna M.; Down, Andrea K.; Mehta, Mihir N.
作者单位：University of Michigan System; University of Michigan; University of Toronto; University Toronto Scarborough; University of Toronto
摘要：We assess the role of human discretion in lending outcomes using a randomized, controlled experiment. The lenders in our sample utilize a third party, machine-generated credit model as an input in their decision. We design a new feature for the credit-scoring platform - the slider feature which - invites lenders to incorporate additional discretion in their decision by adjusting the machine-based recommendation. We compare the loan outcomes for treatment lenders that randomly get the slider, r...
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作者：Schantl, Stefan F.; Wagenhofer, Alfred
作者单位：University of Melbourne; University of Graz
摘要：This paper studies strategic interactions between public and private enforcement of accounting regulation and their consequences for the deterrence of financial misreporting. We develop an economic model with a manager, a public enforcement agency, and an investor and derive equilibrium strategies for manipulative effort, routine investigative effort, and costly private litigation. Our main results are as follows. (i) Strengthening private enforcement unambiguously enhances deterrence, whereas...
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作者：Mehta, Mihir N.; Zhao, Wanli
作者单位：University of Michigan System; University of Michigan; Renmin University of China
摘要：We document that corporate financial misconduct has significant consequences for politicians' election outcomes and, in particular, those politicians that serve on U.S. congressional committees with SEC-relevant oversight responsibilities (SEC-relevant politicians). These politicians display a 31% greater likelihood of losing a reelection campaign after a local firm faces SEC enforcement for financial misconduct. We also document that SEC-relevant politicians appear to influence the SEC to lim...
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作者：Beatty, Anne; Liao, Scott
作者单位：University System of Ohio; Ohio State University; University of Toronto
摘要：Based on a linear provision/charge-off association and V-shaped scatterplots of these variables against nonperforming loan changes, Basu et al. (2020) argue that nonperforming loan changes mis-measure credit quality and linear provision models are mis-specified. They conclude that residual asymmetry controlling for charge-offs results from loan heterogeneity and the real estate crisis. Using additions to nonaccruals to measure credit quality, we find a linear association with provisions, that ...
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作者：Goex, Robert F.; Hemmer, Thomas
作者单位：University of Zurich; Rice University
摘要：We study how friendly boards design the structure of optimal compensation contracts in favor of powerful CEOs. Our study yields unexpected results. First, powerful managers receive higher pay and a contract with a higher pay-performance sensitivity (PPS) if firm performance is low and vice versa. Moreover, we identify conditions where expected pay and expected PPS are both increasing in the friendliness of the board. Second, we show that friendly boards provide managers with higher salaries, m...
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作者：Nallareddy, Suresh
作者单位：Duke University
摘要：Bhojraj, Mohanram, and Zhang (2020) examine how the presence of different types of Exchange Traded Funds (ETFs) affects information transfer across firms. Using earnings announcements as an information event, the authors document that sector ETFs improve informational efficiency by better facilitating information transfer across firms. Furthermore, sector ETFs reduce post-earnings announcement drift. However, the findings using broad ETFs are mixed. In this discussion, I first place the paper ...
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作者：Boland, Matthew; Godsell, David
作者单位：Saint Marys University - Canada; University of Illinois System; University of Illinois Urbana-Champaign
摘要：We test the political cost hypothesis using local soldier fatalities as a source of as-if-random variation in the threat of political costs for local defense firms. Soldier fatalities vary the threat of political costs for defense firms because the U.S. tradition of shared sacrifice during war vulgarizes war profits amid dead soldiers. Local defense firms record more income-decreasing accruals, equal to 1.17 percent of total assets, in response to a one standard deviation increase in local sol...
