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作者：Hui, Kai Wai; Klasa, Sandy; Yeung, P. Eric
作者单位：University System of Georgia; University of Georgia; Hong Kong University of Science & Technology; University of Arizona
摘要：We argue that a firm's suppliers and customers prefer it to account more conservatively due to information asymmetry and these stakeholders' asymmetric payoffs with respect to the firm's performance. We predict that a firm meets this demand for accounting conservatism when suppliers or customers have bargaining advantages over it that enable them to dictate terms of trade or whether trade occurs at all. We show that when a firm's suppliers or customers have greater bargaining power, the firm r...
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作者：Kim, Irene; Skinner, Douglas J.
作者单位：University of Chicago; George Washington University
摘要：Extant research commonly uses indicator variables for industry membership to proxy for securities litigation risk. We provide evidence on the construct validity of this measure by reporting on the predictive ability of alternative models of litigation risk. While the industry measure alone does a relatively poor job of predicting litigation, supplementing this variable with measures of firm characteristics (such as size, growth, and stock volatility) considerably improves predictive ability. A...
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作者：Files, Rebecca
作者单位：University of Texas System; University of Texas Dallas
摘要：This study examines the conditions under which the Securities and Exchange Commission (SEC) exercises enforcement leniency following a restatement. I explore whether cooperation with SEC staff and forthright disclosure of a restatement (e.g., disclosures reported in a timely and visible manner) reduce the likelihood of an SEC sanction or SEC monetary penalties. After controlling for restatement severity, I find that cooperation increases the likelihood of being sanctioned, perhaps because it i...
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作者：Kross, William J.; Suk, Inho
作者单位：State University of New York (SUNY) System; University at Buffalo, SUNY
摘要：We examine how Regulation FD changed analysts' reliance on firms' public disclosure. Regulation FD is associated with a stronger analyst response to earnings announcements, management forecasts and conference calls-that is, analysts respond to these events more quickly, more frequently and with larger forecast revisions after FD. Further, following public disclosure, the decline in analyst forecast dispersion and forecast error accelerates after FD. We find no such changes either for foreign A...
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作者：Yang, Holly I.
作者单位：University of Pennsylvania
摘要：This paper studies the capital market consequences of managers establishing an individual forecasting style. Using a manager-firm matched panel dataset, I examine whether and when manager-specific credibility matters. If managers' forecasting styles affect their perceived credibility, then the stock price reaction to forecast news should increase with managers' prior forecasting accuracy. Consistent with this prediction. I find that the stock price reaction to management forecast news is stron...
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作者：Masulis, Ronald W.; Wang, Cong; Xie, Fei
作者单位：George Mason University; Chinese University of Hong Kong; University of New South Wales Sydney
摘要：We examine the benefits and costs associated with foreign independent directors (FIDs) at U.S. corporations. We find that firms with FIDs make better cross-border acquisitions when the targets are from the home regions of FIDs. However, FIDs also display poor board meeting attendance records and are associated with a greater likelihood of intentional financial misreporting, higher CEO compensation, and a lower sensitivity of CEO turnover to performance. Finally, firms with FIDs exhibit signifi...
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作者：Landsman, Wayne R.; Maydew, Edward L.; Thornock, Jacob R.
作者单位：University of North Carolina; University of North Carolina Chapel Hill; University of Washington; University of Washington Seattle
摘要：This study examines whether the information content of earnings announcements - abnormal return volatility and abnormal trading volume - increases in countries following mandatory IFRS adoption, and conditions and mechanisms through which increases occur. Findings suggest information content increased in 16 countries that mandated adoption of IFRS relative to 11 that maintained domestic accounting standards, although the effect of mandatory IFRS adoption depends on the strength of legal enforc...
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作者：Bushee, Brian J.
作者单位：University of Pennsylvania
摘要：Maffett (this issue) finds that the opacity of a firm's information environment affects the degree of informed trade by institutional investors. In this discussion, I address the key research design choices involved in studies of opacity and informed trading and I relate the results to the literature on institutional investor performance and stock selection. I suggest that future work investigate the role of discretionary opacity in facilitating informed trade as part of the cost benefit trade...
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作者：Ettredge, Michael; Huang, Ying; Zhang, Weining
作者单位：University of Louisville; University of Kansas
摘要：We examine whether Basu's (1997) differential timeliness metric and the related C-Score metric are effective in detecting predictable differences in conservatism surrounding corrections of overstated earnings. Cross-sectional and time-series analyses, employing 2132 firms making restatements during 1999-2005, suggest Basu-based metrics capture variation in conservatism. Further, we find that increases in conservatism following restatements are contingent on improvements in corporate governance...
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作者：Hou, Kewei; van Dijk, Mathijs A.; Zhang, Yinglei
作者单位：University System of Ohio; Ohio State University; Erasmus University Rotterdam - Excl Erasmus MC; Erasmus University Rotterdam; Chinese University of Hong Kong
摘要：We use earnings forecasts from a cross-sectional model to proxy for cash flow expectations and estimate the implied cost of capital (ICC) for a large sample of firms over 1968-2008. The earnings forecasts generated by the cross-sectional model are superior to analysts' forecasts in terms of coverage, forecast bias, and earnings response coefficient. Moreover, the model-based ICC is a more reliable proxy for expected returns than the ICC based on analysts' forecasts. We present evidence on the ...
