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作者：Jiang, Xu; Yang, Ming
作者单位：Duke University
摘要：We characterize the properties of optimal accounting rules in a signaling game. An impatient firm sells shares to competitive investors. The firm can signal its private information about the fundamental by retaining a fraction of the shares. In addition, the firm can commit to disclosing information according to a set of accounting rules chosen ex ante. Information disclosure reduces signaling cost so that perfect disclosure is optimal. When perfect disclosure is impossible, the optimal accoun...
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作者：Nikolaev, Valeri V.
作者单位：University of Chicago
摘要：Carrizosa and Ryan (2017) explore the use of private information covenants, which contractually oblige borrowers to disclose projected and intra-quarter financial statements. The authors provide evidence that creditors acquire private information about borrowers via these covenants. This facilitates the monitoring process, subject to a cost-benefit tradeoff. I discuss how the study fits into the literature and contend that the costs associated with information covenants are less clear and have...
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作者：Kim, Jaehyeon; Kim, Yongtae; Zhou, Jian
作者单位：Deakin University; Santa Clara University; University of Hawaii System; University of Hawaii Manoa
摘要：We predict that managers of firms in countries where languages do not require speakers to grammatically mark future events perceive future consequences of earnings management to be more imminent, and therefore they are less likely to engage in earnings management. Using data from 38 countries, we find that accrual-based earnings management and real earnings management are less prevalent where there is weaker time disassociation in the language. Our study is the first to examine the relation be...
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作者：Hope, Ole-Kristian; Hu, Danqi; Zhao, Wuyang
作者单位：University of Toronto; BI Norwegian Business School; Northwestern University
摘要：This study examines how short-selling threats affect auditors. During 2005-2007, the SEC ordered a pilot program in which one-third of the Russell 3000 index firms were arbitrarily chosen to be exempted from short-sale price tests. As a result, these stocks faced significantly higher short-selling threats. We implement a difference-in-differences test with firm fixed effects to show that auditors react to the increased threats and charge higher audit fees to the pilot firms. Further, we find t...
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作者：Levy, Hagit; Shalev, Ron
作者单位：City University of New York (CUNY) System; Baruch College (CUNY); New York University
摘要：This study investigates how firm's bond repurchase objective affects its choice of repurchase method. Unlike tender offers, open-market repurchases are not pre-announced and buyer's identity is unknown to the seller. We provide evidence that firms are likely to repurchase on the open-market when bonds are mispriced and when firms seek to manage their financial reports, either to meet earnings targets or avert debt covenant violations. When firms seek to amend indenture terms, they prefer tende...
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作者：Dyer, Travis; Lang, Mark; Stice-Lawrence, Lorien
作者单位：University of North Carolina; University of North Carolina Chapel Hill; University of Southern California
摘要：We document marked trends in 10-K disclosure over the period 1996-2013, with increases in length, boilerplate, stickiness, and redundancy and decreases in specificity, readability, and the relative amount of hard information. We use Latent Dirichlet Allocation (LDA) to examine specific topics and find that new FASB and SEC requirements explain most of the increase in length and that 3 of the 150 topics fair value, internal controls, and risk factor disclosures account for virtually all of the ...
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作者：Bradley, Daniel; Gokkaya, Sinan; Liu, Xi; Xie, Fei
作者单位：State University System of Florida; University of South Florida; University System of Ohio; Ohio University; University System of Ohio; Miami University; University of Delaware
摘要：We examine whether analysts' prior industry experience influences their ability to serve as effective external firm monitors. Our analyses of firms' financial disclosure quality, executive compensation and CEO turnover decisions portray a consistent picture that related pre-analyst industry experience is of critical importance for analysts to play an effective monitoring role. Coverage by analysts with such experience is associated with reduced earnings management, lower probability of committ...
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作者：Aobdia, Daniel; Shroff, Nemit
作者单位：Northwestern University; Massachusetts Institute of Technology (MIT)
摘要：We examine whether auditor regulatory oversight affects the value of financial statement audits. Using the PCAOB international inspection program as a setting to generate within country variation in regulatory oversight, we find that non-U.S. auditors inspected by the PCAOB gain 4% to 6% market share from competing auditors after PCAOB inspection reports are made public. When inspection findings reveal that an auditor has many engagement-level deficiencies, market share gains following inspect...
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作者：Badia, Marc; Duro, Miguel; Penalva, Fernando; Ryan, Stephen
作者单位：University of Navarra; IESE Business School; New York University
摘要：Firms measure fair values using Level 2 or 3 inputs when items do not trade in liquid markets, limiting market discipline over the measurements. We provide evidence that firms holding higher proportions of financial instruments measured at Level 2 and 3 fair values report more conditionally conservative comprehensive income attributable to fair value measurements, consistent with firms trying to mitigate investors' discounting of the measurements. We further predict and find that this conditio...
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作者：Even-Tov, Omri
作者单位：University of California System; University of California Berkeley
摘要：In this paper I show that the bond price reaction to earnings announcements has predictive power for post-announcement stock returns and that this predictive ability is driven by the bonds of non-investment grade firms. I find that bonds' predictive ability is more pronounced in firms that have a lower level of institutional shareholder ownership and whose bonds are more liquid. This paper enhances our understanding of the relation between the stock and bond markets and complements the literat...
