-
作者：Lewellen, Jonathan; Resutek, Robert J.
作者单位：Dartmouth College; University System of Georgia; University of Georgia
摘要：Higher accruals are associated with lower subsequent earnings. We show this phenomenon can be explained by the way sales, profits, and working capital respond to changes in a firm's product markets. Empirically, high accruals predict high subsequent sales growth but a long-lasting drop in both profits and profitability. Accruals also predict an increase in future competition, suggesting that accruals are correlated with abnormally high-and, in equilibrium, transitory-true profitability that at...
-
作者：Lel, Ugur; Miller, Darius
作者单位：University System of Georgia; University of Georgia; Southern Methodist University
摘要：We find that the directorial labor market's ability to align the incentives of managers and shareholders depends on investor protection in a country. For example, following a shareholder unfriendly signal in common law countries, directors lose 2.64 times more outside board seats and are 57% more likely to be turned over at their own firm than in civil law countries. Further, outside director appointments are value relevant only strong investor protection countries. Our findings suggest that t...
-
作者：Kyung, Hangsoo; Lee, Hakyin; Marquardt, Carol
作者单位：Chinese University of Hong Kong; City University of New York (CUNY) System; Baruch College (CUNY)
摘要：We examine the effect of voluntary adoption of clawback provisions on non-GAAP earnings disclosures. Prior literature documents that voluntary clawback adoption improves financial reporting quality by increasing the costs of misstating GAAP earnings. However, managers may respond to perceptions of reduced discretion over GAAP reporting by increasing their reliance on non-GAAP earnings disclosures. Using a propensity score matched sample, we find that non-GAAP earnings disclosure frequency incr...
-
作者：Pacelli, Joseph
作者单位：Indiana University System; Indiana University Bloomington; IU Kelley School of Business
摘要：This study examines the relation between financial institutions' corporate culture and the quality of analysts' research services. Using data collected from the Financial Industry Regulatory Authority, I measure the weakness of financial institutions' corporate culture based on violations observed in securities activities unrelated to equity research. I find evidence demonstrating an association between weak corporate culture and analysts' providing research products catered to institutional c...
-
作者：Gallo, Lindsey A.; Kothari, S. P.
作者单位：University of Michigan System; University of Michigan; U.S. Securities & Exchange Commission (SEC); Massachusetts Institute of Technology (MIT)
摘要：Armstrong, Glaeser and Kepler (2019) examine whether accounting quality affects the sensitivity of a firm's stock returns to monetary policy news. The authors document that firms with lower accounting quality experience more pronounced responses to surprise changes in the target Federal funds rate, consistent with proposed balance -sheet channel of policy transmission. We first discuss how this paper fits with prior literature on the role of accounting quality and firm investment and with rece...
-
作者：Shevlin, Terry; Shivakumar, Lakshmanan; Urcan, Oktay
作者单位：University of California System; University of California Irvine; University of London; London Business School; University of Illinois System; University of Illinois Urbana-Champaign
摘要：Prior studies on the relation between corporate taxes and future macroeconomic growth present contradictory evidence. We argue this mixed evidence is at least partly due to the use of statutory corporate tax rates which ignore the complexity of tax exemptions, tax deductions, tax enforcement and firms' tax planning. We propose an alternative tax rate measure that aggregates cash effective tax rates of listed firms, which reflect not only statutory tax rates, but also other features of the tax ...
-
作者：Gerakos, Joseph
作者单位：Dartmouth College
-
作者：Byzalov, Dmitri; Basu, Sudipta
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University
摘要：We develop new distribution discontinuity tests conditional on multiple explanatory variables for analyzing meet-or-just-beat behavior around benchmarks. These tests combine Burgstahler and Dichev's (1997) meet-or-just-beat intuition with a flexible statistical model that addresses important limitations of the existing tests. Our method considerably outperforms logit-based tests of distribution discontinuity determinants and changes the interpretation of a major finding in the earnings discont...
-
作者：Arif, Salman; Marshall, Nathan T.; Schroeder, Joseph H.; Yohn, Teri Lombardi
作者单位：Indiana University System; Indiana University Bloomington; University of Colorado System; University of Colorado Boulder
摘要：We document a growing disparity in earnings disclosure mechanisms. Firms are increasingly disclosing earnings announcements (EA) concurrently with the 10-K filing instead of first issuing a 'stand-alone' EA. Firm adoption of concurrent EA/10-Ks is associated with lower investor sophistication, greater impediments to producing timely and reliable earnings information, and greater industry-level concurrent reporting. Concurrent EA/10-Ks differ from stand-alone EAs in that investors anticipate mo...
-
作者：Adhikari, Binay K.; Agrawal, Anup; Malm, James
作者单位：University of Texas System; University of Texas Rio Grande Valley; University of Alabama System; University of Alabama Tuscaloosa; College of Charleston
摘要：We find that firms where women have more power in the top management team, measured by female executives' plurality and pay slice, face fewer operations-related lawsuits. This effect is robust to several treatments of endogeneity and does not appear to be driven by female executives' greater willingness to settle the cases. Evidence from a simultaneous equations approach suggests that firms where women executives have more power avoid lawsuits partly by avoiding some risky but value-increasing...
