-
作者：Altinkilic, Oya; Balashov, Vadim S.; Hansen, Robert S.
作者单位：University System of Maryland; University of Maryland College Park; Rutgers University System; Rutgers University Camden; Tulane University
摘要：We assess investment banks' influence over the agreement between their analysts' research behavior and their clients' interests, in the post-reform era. Competing banks discipline their analysts with worse career outcomes for producing biased reports, issuing shirking reports, and for involvement in the earnings guidance game, showing meaningful monitoring of their analysts. Highly reputable banks provide more monitoring discipline of their analysts and bonding of their moral hazard than other...
-
作者：Chang, Eric C.; Lin, Tse-Chun; Ma, Xiaorong
作者单位：University of Hong Kong; Shanghai Jiao Tong University; University of Macau
摘要：We explore the governance effect of short-selling threat on mergers and acquisitions (M&A). We use equity lending supply (LS) to proxy for the threat, as short sellers incentives to scrutinize a firm depend on the availability of borrowing shares. Our results show that acquirers with higher LS have higher announcement returns. The effect is stronger when acquirers are more likely to be targets of subsequent hostile takeovers and when their managers wealth is more linked to stock prices. We con...
-
作者：Koonce, Lisa; Leitter, Zheng; White, Brian J.
作者单位：University of Texas System; University of Texas Austin; Nanyang Technological University
摘要：Certain financial statement items are closely related, such as items in hedging relationships. In this paper, we develop theory and conduct two experiments to investigate three different balance sheet presentation formats for related financial statement items. We posit that a linked presentation format rarely used in practice allows financial statement users to better distinguish among firms with different economics. Neither net presentation nor separate presentation of related balance sheet i...
-
作者：Bradshaw, Mark; Liao, Guanmin; Ma, Mark (Shuai)
作者单位：Boston University; Renmin University of China; American University; Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh
摘要：In state owned enterprises (SOEs), taxes are a dividend to the controlling shareholder, the state, but a cost to other shareholders. We examine publicly traded firms in China and find significantly lower tax avoidance by SOEs relative to non-SOEs. The differences are pronounced for locally versus centrally-owned SOEs and during the year of SOE term performance evaluations. We link our results to managerial incentives through promotion tests, finding that higher SOE tax rates are associated wit...
-
作者：Beck, Matthew J.; Gunn, Joshua L.; Hallman, Nicholas
作者单位：University of Kansas; Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh; University of Texas System; University of Texas Austin
摘要：Audit firms are organized as collections of geographically decentralized offices. Decentralization allows for increased proximity between offices and clients, improving the efficiency of auditors' interactions with client personnel. Yet decentralization also decreases the proximity between offices within each firm, potentially impeding auditors' interactions with each other. We show that decreased proximity between offices reduces inter-office audit quality spillovers and that this effect is d...
-
作者：Chen, Shuping; Huang, Ying; Li, Ningzhong; Shevlin, Terry
作者单位：University of Texas System; University of Texas Austin; University of Texas System; University of Texas Dallas; University of California System; University of California Irvine
摘要：We study whether, and more importantly, through what mechanisms, quasi-indexers affect portfolio firms' tax planning by employing the discontinuity in quasi-indexer ownership around the Russell 1000/2000 index cutoff. Using a regression discontinuity design, we find that higher quasi-indexer ownership leads to greater tax saving. With respect to the mechanisms, we find that the greater tax saving is a result of a focus on improved overall firm performance, not a specific focus on improved tax ...
-
作者：Demerjian, Peter
作者单位：University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital
摘要：Credit default swaps (CDS) represent a major innovation in debt markets, allowing lenders to transfer credit risk to a counterparty by paying a premium. Shan, Tang, and Winton (2019) explore whether the availability of CDS affects the monitoring incentives of lenders. Their paper finds that CDS leads to looser loan terms (less collateral and looser covenants), consistent with a reduction in monitoring incentives. I examine several aspects of their study, including whether loan provisions and C...
-
作者：Shan, Chenyu; Tang, Dragon Yongjun; Winton, Andrew
作者单位：Shanghai University of Finance & Economics; University of Hong Kong; University of Minnesota System; University of Minnesota Twin Cities; Shanghai Jiao Tong University
摘要：The rise of credit default swaps (CDS) provides creditors with a market-based approach to obtaining protection, but it can also affect lenders' monitoring of the borrowers. We find that after CDS begin trading on a given firm, new loans to that firm are less likely to require collateral and have less strict financial covenants, even controlling for endogeneity. The effects are stronger when lenders have easier access to CDS, for safer firms, credit lines, and performance-based covenants. Our e...
-
作者：Gao, Pingyang; Jiang, Xu; Zhang, Gaoqing
作者单位：University of Chicago; Duke University; University of Minnesota System; University of Minnesota Twin Cities
摘要：The adoption of common accounting standards generates both a precision effect and a network effect. When firms use common standards, investors can leverage their knowledge about the standards to process more financial reports. Embedding both effects into the economic framework of Baiman and Verrecchia (1995, 1996), we study the adoption's effects on reporting precision, firm value, and liquidity of both the switcher and the early adopter. The model helps address the identification challenge an...
-
作者：Noh, Suzie; So, Eric C.; Weber, Joseph P.
作者单位：Massachusetts Institute of Technology (MIT)
摘要：We examine the relation between firms' voluntary guidance and mandatory 8K filings. We find a negative relation between guidance and 8Ks, which strengthens following the 2004 expansion of mandatory 8K requirements, consistent with firms using the disclosures as substitutes. Increases in 8Ks coincide with declines in firms' profits, but this negative relation weakens after the 2004 regulation, consistent with firms broadening the scope of information conveyed through 8Ks. Together, our findings...
