-
作者：Badertscher, Brad A.; Collins, Daniel W.; Lys, Thomas Z.
作者单位：University of Notre Dame; University of Iowa; Northwestern University
摘要：Using a sample of restatement firms and a meet-or-beat model to classify firms as making discretionary accounting choices for opportunistic meet-or-beat (OP-MB) reasons, we show that originally reported earnings and accrual components are less predictive of future cash flows relative to the restated numbers. We find the opposite is true for firms classified as making discretionary accounting choices for non-OP-MB reasons. We consider a number of competing explanations for these latter results....
-
作者：Ramalingegowda, Santhosh; Yu, Yong
作者单位：University of Texas System; University of Texas Austin; University System of Georgia; University of Georgia
摘要：Recent research suggesting that shareholders demand conservative financial reporting raises the question: Which shareholders demand conservatism? We find that higher ownership by institutions that are likely to monitor managers is associated with more conservative financial reporting. This positive association is more pronounced among firms with more growth options and higher information asymmetry, where direct monitoring is more difficult and the potential governance benefits of conservatism ...
-
作者：Bradshaw, Mark T.
作者单位：Boston College
摘要：Kadan et al. (this issue) examine whether financial analysts exhibit industry expertise. It is not obvious from the title, but the study actually examines two different types of analysts: firm-specific analysts that have been examined extensively in prior research, and the rarer industry analysts who provide outlooks on whole industries. This study is the first to examine a large sample of explicit industry recommendations, and provides a fresh insight into an important aspect of financial res...
-
作者：Barth, Mary E.; Landsman, Wayne R.; Lang, Mark; Williams, Christopher
作者单位：Stanford University; University of North Carolina; University of North Carolina Chapel Hill; University of Michigan System; University of Michigan
摘要：This study examines whether application of IFRS by non-US firms results in accounting amounts comparable to those resulting from application of US GAAP by US firms. IFRS firms have greater accounting system and value relevance comparability with US firms when IFRS firms apply IFRS than when they applied domestic standards. Comparability is greater for firms that adopt IFRS mandatorily, firms in common law and high enforcement countries, and in more recent years. Earnings smoothing, accrual qua...
-
作者：Battalio, Robert H.; Lerman, Alina; Livnat, Joshua; Mendenhall, Richard R.
作者单位：Yale University; New York University; University of Notre Dame
摘要：We show that the vast majority of investors ignore value-relevant accruals information when it is first released, but that investors who initiate trades of at least 5,000 shares tend to transact in the proper direction. These investors trade on accruals information only when the previously-announced earnings signal is non-negative. Unconditionally, those investors initiating the smallest trades appear to respond to accruals in the wrong direction, but further investigation suggests this behavi...
-
作者：Armstrong, Christopher S.; Blouin, Jennifer L.; Larcker, David F.
作者单位：Stanford University; University of Pennsylvania
摘要：We use a proprietary data set with detailed executive compensation information to examine the relationship between the incentives of the tax director and GAAP and cash effective tax rates, the book-tax gap, and measures of tax aggressiveness. We find that the incentive compensation of the tax director exhibits a strong negative relationship with the GAAP effective tax rate, but little relationship with the other tax attributes. We interpret these results as indicating that tax directors are pr...
-
作者：Jayaraman, Sudarshan
作者单位：Washington University (WUSTL)
摘要：I use the first-time enforcement of insider trading laws in sixteen countries as a shock to enforcement and examine its influence on timely loss recognition (TLR). Consistent with greater enforcement increasing the usefulness of accounting information in contracts and thereby the demand for higher quality reporting, insider trading enforcement is associated with a significant increase in TLR. No such increase is detected in neighboring non-enforcing countries. In addition to documenting how sh...
-
作者：Dutta, Sunil; Fan, Qintao
作者单位：University of California System; University of California Berkeley
摘要：We study a setting wherein a divisional manager undertakes personally costly effort to improve the profitability of an investment project. The manager's choice of innovation effort is subject to a holdup problem because of the ex post opportunism on the part of headquarters. We analyze and contrast the performance of centralized and delegated forms of investment decision-making. We find that delegation improves the manager's innovation incentives. We identify conditions for each of the two org...
-
作者：Laux, Volker; Stocken, Phillip C.
作者单位：Dartmouth College; University of Texas System; University of Texas Austin
摘要：We examine how the threat of litigation affects an entrepreneur's reporting behavior when the entrepreneur (i) can misrepresent his privately observed information, (ii) pays legal damages out of his own pocket, and (iii) is optimistic about the firm's prospects relative to investors. We find higher expected legal penalties imposed on the culpable entrepreneur do not always cause the entrepreneur to be more cautious but instead can increase misreporting. We highlight how this relation depends c...
-
作者：Ball, Ray; Jayaraman, Sudarshan; Shivakumar, Lakshmanan
作者单位：University of Chicago; Washington University (WUSTL); University of London; London Business School
摘要：We examine the confirmation hypothesis that audited financial reporting and disclosure of managers' private information are complements, because independent verification of outcomes disciplines and hence enhances disclosure credibility. Committing to higher audit fees (a measure of financial statement verification) is associated with management forecasts that are more frequent, specific, timely, accurate and informative to investors. Because private information disclosure and audited financial...
