Journal of Accounting and Economics

最新文章

• Mandatory clawback provisions, information disclosure, and the regulation of securities markets AI翻译
  作者：Denis, Diane K.
  作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh; Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh
  摘要：Chan et al. (2012) find that voluntary adoption of compensation clawback provisions is followed by fewer financial restatements and fewer auditor reports of material internal control weaknesses, higher earnings response coefficients, and reduced auditing fees and lags. They conclude that voluntary adoption of clawback provisions leads to increased financial integrity. Based on these findings they suggest that U.S. government mandated clawback provisions will be effective in reducing material f...
• Financial reporting frequency, information asymmetry, and the cost of equity AI翻译
  作者：Fu, Renhui; Kraft, Arthur; Zhang, Huai
  作者单位：City St Georges, University of London; Erasmus University Rotterdam - Excl Erasmus MC; Erasmus University Rotterdam; Nanyang Technological University
  摘要：Using hand-collected data on firms' interim reporting frequency from 1951 to 1973, we examine the impact of financial reporting frequency on information asymmetry and the cost of equity. Our results show that higher reporting frequency reduces information asymmetry and the cost of equity, and they are robust towards considerations of the endogenous nature of firms' reporting frequency choice. We obtain similar results when we focus on mandatory changes in reporting frequency. Our results sugge...
• Accounting discretion, loan loss provisioning, and discipline of Banks' risk-taking AI翻译
  作者：Bushman, Robert M.; Williams, Christopher D.
  作者单位：University of Michigan System; University of Michigan; University of North Carolina; University of North Carolina Chapel Hill
  摘要：Examining banks across 27 countries, we estimate two measures of the forward-looking orientation reflected in discretionary loan provisioning practices within a country. We document that forward-looking provisioning designed to smooth earnings dampens discipline over risk-taking, consistent with diminished transparency inhibiting outside monitoring. In contrast, forward-looking provisioning reflecting timely recognition of expected future loan losses is associated with enhanced risk-taking dis...
• Accounting standards and debt covenants: Has the balance sheet approach led to a decline in the use of balance sheet covenants? AI翻译
  作者：Demerjian, Peter R.
  作者单位：Emory University
  摘要：Recent years have seen a sharp decline in the use of balance sheet-based covenants in private debt contracts. I hypothesize that changes in accounting standards can explain part of this decline. Standard setting has shifted towards a balance sheet approach, which I predict has made the balance sheet less useful for contracting. I measure the effect of the balance sheet approach on specific borrowers using a volatility ratio. I find that borrowers with greater volatility ratios are less likely ...
• Consistency in meeting or beating earnings expectations and management earnings forecasts AI翻译
  作者：Kross, William J.; Ro, Byung T.; Suk, Inho
  作者单位：Purdue University System; Purdue University; State University of New York (SUNY) System; University at Buffalo, SUNY; Yonsei University
  摘要：This paper provides evidence that firms that have consistently met or beaten analysts' earnings expectations (MBE) provide more frequent bad news management forecasts than firms with no established string of MBE, particularly when existing analyst forecasts are optimistic. This suggests that firms with a consistent MBE record are more likely to guide analysts' expectations downward to avoid breaking the consistency. Subsequent analyst forecast revisions following bad news management forecasts ...
• Pension plan accounting estimates and the freezing of defined benefit pension plans AI翻译
  作者：Comprix, Joseph; Muller, Karl A., III
  作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; Syracuse University
  摘要：This study provides evidence that, when hard freezing their defined benefit pension plans, employers select downward biased accounting assumptions to exaggerate the economic burden of their benefit plans. Downward biased expected rates of return and discount rates allow managers to increase reported pension expenses and, for discount rates, allow managers to increase reported pension liabilities. We find that prior to the Sarbanes-Oxley Act, both rates are downward biased when firms freeze the...
• Do delays in expected loss recognition affect banks' willingness to lend? AI翻译
  作者：Beatty, Anne; Liao, Scott
  作者单位：University System of Ohio; Ohio State University; University of Toronto
  摘要：Banks can decrease their future capital inadequacy concerns by reducing lending. The capital crunch theory predicts that lending is particularly sensitive to regulatory capital constraints during recessions, when regulatory capital declines and external-financing frictions increase. Regulators and policy makers argue that the current loan loss provisioning rules magnify this pro-cyclicality. Exploiting variation in the delay in expected loss recognition under the current incurred loss model, w...
• Hometown advantage: The effects of monitoring institution location on financial reporting discretion AI翻译
  作者：Ayers, Benjamin C.; Ramalingegowda, Santhosh; Yeung, P. Eric
  作者单位：University System of Georgia; University of Georgia
  摘要：We examine the impact of institutional ownership on financial reporting discretion, focusing on whether the impact varies with institutions' cost of acquiring monitoring information. Using geographic distance between the firm and the institutional investor as a proxy for the cost of acquiring monitoring information, we find that corporate managers are less likely to use financial reporting discretion in the presence of local monitoring institutions than distant monitoring institutions. We also...
• Panacea, Pandora's box, or placebo: Feedback in bank mortgage-backed security holdings and fair value accounting AI翻译
  作者：Bhat, Gauri; Frankel, Richard; Martin, Xiumin
  作者单位：Washington University (WUSTL)
  摘要：We examine the relation between bank holdings of mortgage-backed securities (MBS) and MBS prices. Theory suggests feedback between MBS holdings and underlying asset markets can be aggravated by mark-to-market accounting. We measure feedback by the relation between asset returns and the changes in bank MBS holdings. Consistent with the existence of feedback effects related to mark-to-market, we find that for banks with high MBS, more nonperforming loans, and lower total capital ratio, changes i...
• The quality of accounting information in politically connected firms AI翻译
  作者：Chaney, Paul K.; Faccio, Mara; Parsley, David
  作者单位：Purdue University System; Purdue University; Vanderbilt University
  摘要：We document that the quality of earnings reported by politically connected firms is significantly poorer than that of similar non-connected companies. Our results are not due to firms with ex-ante poor earnings quality establishing connections more often. Instead, our results suggest that, because of a lesser need to respond to market pressures to increase the quality of information, connected companies can afford disclosing lower quality accounting information. In particular, lower quality re...