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作者：Pierce, Andrew T.
作者单位：University System of Georgia; Georgia State University
摘要：This study examines the capital -market effects of tipper-tippee insider trading laws. To do so, I exploit the unexpected decision issued by the Court of Appeals for the Second Circuit in U.S. v. Newman 773 F.3d 438, which reduced legal jeopardy for Second Circuit -based market participants prior to being overturned. Consistent with Newman constraining insider trading enforcement, I find strong evidence of plausible insider trading in the Second Circuit following the ruling. I also document a ...
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作者：Arif, Salman; Donovan, John; Gopalan, Yadav; Morris, Arthur
作者单位：University of Minnesota System; University of Minnesota Twin Cities; University of Notre Dame; Indiana University System; IU Kelley School of Business; Indiana University Bloomington; Federal Reserve System - USA; Federal Reserve Bank - St. Louis; Hong Kong University of Science & Technology
摘要：We provide the first evidence that prudential principles shape bankers' executive compensation, a phenomenon we call pay for prudence (PfP). We conjecture that PfP incentivizes bankers to balance shareholders' preference for risk with regulators' preference for prudence. Although PfP terms are often used in bank compensation contracts, we find that the use of detailed and concrete PfP terms are positively associated with equity incentives for risk-taking. Furthermore, detailed and concrete PfP...
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作者：Defond, Mark; Li, Zengquan; Wong, T. J.; Wu, Kaiwen
作者单位：University of Southern California; Shanghai University of Finance & Economics
摘要：Prior research finds that auditors' social connections with their clients harms audit quality. We examine auditors' social connections with members of their clients' business community, a setting in which auditors' connections may improve audit quality. While social ties within a client's business community should improve auditor competency, they also threaten auditor independence. We test the effects of auditors' network connections audit quality using data from China, where data on social co...
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作者：Gad, Mahmoud; Nikolaev, Valeri; Tahoun, Ahmed; van Lent, Laurence
作者单位：Lancaster University; University of Chicago; University of London; London Business School
摘要：We take advantage of a new composite measure of political risk (Hassan et al., 2019) to study the effects of firm-level political risk on private debt markets. First, we use panel data tests and exploit the redrawing of US congressional districts to uncover plausibly exogenous variation in firm-level political risk. We show that borrowers' political risk is linked to interest rates set by lenders. Second, we test for the transmission of political risk from lenders to borrowers. We predict and ...
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作者：Dekeyser, Simon; He, Xianjie; Xiao, Tusheng; Zuo, Luo
作者单位：KU Leuven; Shanghai University of Finance & Economics; Central University of Finance & Economics; National University of Singapore; Cornell University
摘要：We develop the concept of auditor industry range as the extent to which an auditor has experiences in auditing clients from different industries, and we link this construct to auditor performance, drawing on prior research in psychology and cognitive science. We find that auditors with a wide range of industry experiences are more likely to require audit adjustments than auditors with a narrow range. We conduct an extensive set of analyses to mitigate the concern that our results are driven by...
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作者：Jiao, Yawen
作者单位：University of California System; University of California Riverside
摘要：Prior literature shows decision fatigue reduces analysts' forecast accuracy. We study whether analysts strategically manage their decision fatigue. Firms within an analyst's research portfolio can differentially affect the analyst's reputation and career, with larger firms with greater trading volumes and institutional ownership being more important. We find that analysts choose to issue forecasts for more important firms when they are less decision fatigued, i.e., when the number of prior for...
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作者：Byzalov, Dmitri; Basu, Sudipta
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University
摘要：Researchers often use regression -based x -Scores (e.g., conservatism C -Score, misstatement F -Score) from a stage 1 model as a dependent variable in stage 2. We argue that this x -Score analysis can cause coefficient biases and interpretation problems because (1) x -Score does not capture new sources of variation, and (2) the estimates often hinge on unacknowledged technical assumptions. Instead, we recommend that researchers include the test variables and the relevant controls in stage 1, o...
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作者：Mkrtchyan, Anahit; Sandvik, Jason; Xu, Da
作者单位：University of Massachusetts System; University of Massachusetts Amherst; University of Arizona; Tsinghua University
摘要：We examine employee responses to CEO activism, the increasingly common practice of CEOs taking public stances on socio-political issues. CEO activism may bolster employees' identification with their organizations and strengthen shared beliefs among employees. Alternatively, CEO activism may alienate employees if CEO stances contrast with employees' ideologies. We find that employee satisfaction is higher when CEOs engage in activism that is aligned with employees' ideologies. Furthermore, firm...
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作者：Mayew, William J.
作者单位：Duke University
摘要：Guidance is an important and long-studied topic in the accounting literature. Call, Hribar, Skinner, and Volant (this issue) survey managers who provide guidance and those that do not to generate insights on the costs and benefits of providing guidance. For managers who do provide guidance, perceptions regarding guidance characteristics are elicited. Firm responses are connected to archival data sources, enabling cross-sectional analysis of survey responses and facilitating comparison of self-...
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作者：Dyer, Travis A.; Glaeser, Stephen; Lang, Mark H.; Sprecher, Caroline
作者单位：Brigham Young University; University of North Carolina; University of North Carolina Chapel Hill; Elon University
摘要：The patent system grants inventors temporary monopoly rights in exchange for a public disclosure detailing their innovation. These disclosures are meant to allow others to recreate and build on the patented innovation. We examine how the quality of these disclosures affects follow-on innovation. We use the plausibly exogenous assignment to patent applications of examiners who differ in their enforcement of disclosure requirements as a source of variation in disclosure quality. We find that som...
