-
作者：Andries, Kathleen; Gallemore, John; Jacob, Martin
作者单位：WHU - Otto Beisheim School of Management; University of Chicago
摘要：We examine how the corporate tax system, through its treatment of loan losses, affects bank financial reporting. Exploiting cross-country and intertemporal variation in income tax rates and loan loss provision deductibility, we find that loan loss provisions are increasing in the tax rate for countries that permit general provision tax deductibility. When general provisions are deductible, a 1 percentage point rate increase leads to a provision increase of 4.9% of the sample average. This effe...
-
作者：Hribar, Paul; Melessa, Samuel J.; Small, R. Christopher; Wilde, Jaron H.
作者单位：University of Iowa; University of Toronto
摘要：We examine whether managerial sentiment is associated with errors in accrual estimates. Using public banks we find (1) managerial sentiment is negatively associated with loan loss provision estimates, (2) future charge-offs per dollar of provision are positively associated with sentiment when the provision is estimated, and (3) the effects of sentiment are greater for firms with more uncertain charge-offs. Results are similar for private banks, suggesting accrual manipulation related to capita...
-
作者：Cohen, Lauren
作者单位：Harvard University; National Bureau of Economic Research
-
作者：Ellahie, Atif; Tahoun, Ahmed; Tuna, Irem
作者单位：Utah System of Higher Education; University of Utah; University of London; London Business School
摘要：We use the ethnicity of CEOs across 31 countries as a proxy for their common inherited beliefs and values and find an ethnicity effect in CEO variable pay. We find that the ethnicity effect in variable pay is not driven by the ethnicity effects in corporate policy decisions, and that changes in CEO compensation are significantly larger when CEOs are replaced with a person from a different ethnicity. Our estimated ethnicity effect captures the future time reference and religion of CEOs' ancesto...
-
作者：Kumar, Praveen; Langberg, Nisan; Oded, Jacob; Sivaramakrishnan, K.
作者单位：University of Houston System; University of Houston; Tel Aviv University; Rice University
摘要：We study the choice of disclosure and share repurchase strategies of informed managers using a model that captures how they differentially impact short and long-term stock value. We identify a partial disclosure equilibrium in which firms in the lowest value region neither disclose nor repurchase, firms with intermediate values disclose but do not repurchase, and firms in the highest value region induce undervaluation by not disclosing and buy back shares. In particular, the well known unravel...
-
作者：Carrizosa, Richard; Ryan, Stephen G.
作者单位：University of Texas System; University of Texas El Paso; New York University
摘要：We identify covenants in commercial loan contracts that require public borrowers to periodically disclose two types of accountingzrelated private information to lenders: projected financial statements for future periods and monthly historical financial statements. We hypothesize and provide evidence that: (1) loan contracts include these covenants in settings where they enhance lenders' loan contract monitoring; (2) the covenants are positively associated with the frequency of loan contract am...
-
作者：Call, Andrew C.; Campbell, John L.; Dhaliwal, Dan S.; Moon, James R., Jr.
作者单位：Arizona State University; Arizona State University-Tempe; University System of Georgia; University of Georgia; University of Arizona; University System of Georgia; Georgia State University
摘要：We examine the association between employee quality and financial reporting outcomes. Using the average workforce education level in MSA(s) where the firm operates as a proxy for employee quality, we find that firms with a high-quality workforce exhibit higher accruals quality, fewer internal control violations, and fewer restatements. These firms also issue superior management forecasts, in terms of frequency, timeliness, accuracy, precision, and bias. Employees located at the firm's headquar...
-
作者：Chen, Qi; Vashishtha, Rahul
作者单位：Duke University
摘要：Applying a difference-in-differences approach to explore variations in the timing of bank mergers in the U.S. over the last two decades, we document an increase in borrowers' disclosure when their banks engage in mergers and acquisitions. The effect is stronger among borrowers more reliant on services from the merging banks and when mergers cause larger changes in banks' monitoring and financing of borrowers. These findings suggest an information spillover effect from bank mergers to the publi...
-
作者：Heese, Jonas; Khan, Mozaffar; Ramanna, Karthik
作者单位：Harvard University; University of Minnesota System; University of Minnesota Twin Cities; University of Oxford
摘要：SEC oversight of publicly listed firms ranges from comment letter (CL) reviews of firms' reporting compliance to pursuing enforcement actions against violators. Prior literature finds that firm political connections (PC) negatively predict enforcement actions, inferring SEC capture. We present new evidence that firm PC positively predict CL reviews and substantive characteristics of such reviews, including the number of issues evaluated and the seniority of SEC staff involved. These results, r...
-
作者：Dou, Ying
作者单位：University of New South Wales Sydney
摘要：When firms experience negative events such as lawsuits or earnings restatements, their directors also suffer. But what about those who leave shortly before the events? I show that directors who leave prior to negative events experience greater declines in the number of their directorships than directors who stay through the events, but smaller declines than directors who leave after the events. These declines do not appear to be voluntary or driven by forced departures. Instead, they appear to...
