-
作者：Dichev, Ilia D.; Graham, John R.; Harvey, Campbell R.; Rajgopal, Shiva
作者单位：Emory University; Duke University; National Bureau of Economic Research
摘要：We provide insights into earnings quality from a survey of 169 CFOs of public companies and in-depth interviews of 12 CFOs and two standard setters. CFOs believe that (i) above all, high-quality earnings are sustainable and repeatable; specific characteristics include consistent reporting choices, backing by actual cash flows, and absence of one-time items and long-term estimates; (ii) about 50% of earnings quality is driven by non-discretionary factors such as industry and macro-economic cond...
-
作者：Alexander, Cindy R.; Bauguess, Scott W.; Bernile, Gennaro; Lee, Yoon-Ho Alex; Marietta-Westberg, Jennifer
作者单位：U.S. Securities & Exchange Commission (SEC); Singapore Management University; University of Southern California
摘要：We use survey responses from 2,901 corporate insiders to assess the costs and benefits of compliance with Section 404 of the Sarbanes-Oxley Act. The majority of respondents recognize compliance benefits, but they do not perceive these benefits to outweigh the costs, on average. This is particularly true among smaller companies where the start-up costs are proportionately larger. However, the perceived efficiency of compliance increased with auditor attestations, years of compliance experience,...
-
作者：Gerakos, Joseph; Lang, Mark; Matfett, Mark
作者单位：University of Chicago; University of North Carolina; University of North Carolina Chapel Hill
摘要：We investigate the experience of companies listing and raising capital on the AIM, which is privately regulated and relies on Nominated Advisors who compete for listings and provide regulatory oversight. AIM firms underperform newly listed firms on traditionally regulated exchanges based on post-listing returns and failure rates, comparable to firms listing on the unregulated US Pink Sheets, and exhibit abnormally high pre-listing accruals and post-listing reversals. High quality auditors and ...
-
作者：Gormley, Todd A.; Matsa, David A.; Milbourn, Todd
作者单位：University of Pennsylvania; Northwestern University; Washington University (WUSTL)
摘要：This paper examines the two-way relationship between managerial compensation and corporate risk by exploiting an unanticipated change in firms' business risks. The natural experiment provides an opportunity to examine two classic questions related to incentives and risk-how boards adjust incentives in response to firms' risk and how these incentives affect managers' risk-taking. We find that, after left-tail risk increases, boards reduce managers' exposure to stock price movements and that les...
-
作者：Armstrong, Christopher S.
作者单位：University of Pennsylvania
摘要：Gormley, Matsa, and Milbourn (in this issue) examine the design and causal effects of CEOs' equity portfolio incentives on firm risk in a novel research setting in which certain firms experience a large exogenous shock that increases their left-tail risk and reduces their investment opportunities. Gormley et al. find that boards and CEOs both make adjustments to CEOs' equity portfolios following the shock. They also find that CEOs with more convex equity portfolios (i.e., Vega) prior to the sh...
-
作者：Barth, Mary E.; Konchitchki, Yaniv; Landsman, Wayne R.
作者单位：Stanford University; University of California System; University of California Berkeley; University of North Carolina; University of North Carolina Chapel Hill
摘要：We provide evidence that firms with more transparent earnings enjoy a lower cost of capital. We base our earnings transparency measure on the extent to which earnings and change in earnings covary contemporaneously with returns. We find a significant negative relation between our transparency measure and subsequent excess and portfolio mean returns, and expected cost of capital, even after controlling for previously documented determinants of cost of capital. (C) 2013 Elsevier B.V. All rights ...
-
作者：Barth, Mary E.; Israeli, Doron
作者单位：Stanford University; Reichman University
摘要：We discuss Mandatory IFRS Reporting and Changes in Enforcement by Christensen, Hail, and Leuz (CHL, in this issue). We begin by discussing CHL in the context of prior literature, and subsequently discuss the research design, results, and inferences. CHL seeks to contribute to the literature by disentangling the liquidity benefits of changes in accounting standards from those of changes in enforcement. Taken at face value, we believe that the evidence in CHL suggests that both change in enforce...
-
作者：Nelson, Mark W.; Skinner, Douglas J.
作者单位：Cornell University; University of Chicago
摘要：Dichev, Graham, Harvey and Rajgopal (DGHR, in this issue) survey chief financial officers (CFOs) to elicit their views on earnings quality, broader trends in financial reporting, and the prevalence of earnings management. They provide some interesting insights on these issues. We discuss how CFOs' incentives in the financial reporting process are likely to affect what we can learn from them about earnings quality. We also discuss how DGHR's methodological choices regarding survey sample and qu...
-
作者：Roychowdhury, Sugata; Martin, Xiumin
作者单位：Boston College; Washington University (WUSTL)
摘要：Various studies have investigated variation in reporting conservatism with pre-specified contractual incentives. Lawrence et al. (forthcoming), hereafter LSS, propose a model to control for normal or non-discretionary conservatism while testing for variation in conservatism with contractual forces, which they characterize as discretionary variation. Our objective is to further the discussion on discretion in conservatism by relying on LSS and incorporating insights from related studies to shed...
-
作者：Hope, Ole-Kristian; Ma, Mark (Shuai); Thomas, Wayne B.
作者单位：University of Toronto; University of Oklahoma System; University of Oklahoma - Norman
摘要：This study tests the relation between corporate tax avoidance and disclosure of geographic earnings for U.S. multinational companies. We find that after the adoption of Statement of Financial Accounting Standards No. 131 in 1998, firms opting to discontinue disclosure of geographic earnings in their financial reports have lower worldwide effective tax rates. These results are consistent with managers perceiving that non-disclosure of geographic earnings helps mask tax avoidance behavior. Howev...
