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作者：Lennox, C
作者单位：Hong Kong University of Science & Technology
摘要：Executives are 'affiliated' if they previously worked for their companies' audit firms. I find most affiliations (71.3%) occur when auditors become employees of audit clients ('employment affiliations'), but affiliations also arise when companies hire executives' former CPA firms ('alma mater affiliations'). Affiliated companies are significantly more likely than unaffiliated companies to receive clean audit opinions-this finding holds for both employment and alma mater affiliations. Executive...
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作者：Ke, B; Ramalingegowda, S
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
摘要：We provide evidence that transient institutional investors (i.e., those actively trading to maximize short term profits) trade to exploit the post-earnings announcement drift (PEAD). We estimate that transient institutions' arbitrage generates an abnormal return of 5.1% (or 22% annualized) after transaction costs. In addition, their arbitrage trades accelerate the speed that stock prices reflect the implications of current earnings for future earnings. However, transient institutions trade les...
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作者：Barton, J; Mercer, M
作者单位：Emory University
摘要：Managers often provide self-serving disclosures that blame poor financial performance on temporary external factors. Results of an experiment conducted with 124 financial analysts suggest that when analysts perceive such disclosures as plausible, they provide higher earnings forecasts and stock valuations than if the explanation had not been provided. However, we also show that these disclosures can backfire if analysts find them implausible. Specifically, implausible explanations that blame p...
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作者：Christensen, PO; Feltham, GA; Sabac, F
作者单位：University of Southern Denmark; University of British Columbia; University of Alberta
摘要：This paper analyzes the impact of signal-to-noise-ratios and the autocorrelation of a performance measure on the principal's welfare in dynamic agencies with renegotiation. We consider the impact of changes in the persistent, transitory, and reversible components of accounting earnings on its usefulness in valuation versus contracting. Increasing the persistent components and reducing the reversible components are generally desirable for valuation, but not for contracting. Eliminating transito...
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作者：Graham, JR; Harvey, CR; Rajgopal, S
作者单位：National Bureau of Economic Research; University of Washington; University of Washington Seattle
摘要：We survey and interview more than 400 executives to determine the factors that drive reported earnings and disclosure decisions. We find that managers would rather take economic actions that could have negative long-term consequences than make within-GAAP accounting choices to manage earnings. A surprising 78% of our sample admits to sacrificing long-term value to smooth earnings. Managers also work to maintain predictability in earnings and financial disclosures. We also find that managers ma...
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作者：Li, X
作者单位：University of Miami
摘要：Analysts with above-median risk-adjusted performance in the estimation period persistently outperform those with below-median performance in the subsequent holdout period. The annualized risk-adjusted returns of trading strategies based on performance persistence are statistically and economically significant, with a magnitude around 10% even after adjusting for transaction costs and trading delays. This stems mostly from past above-median performers and is not simply a decomposition of previo...
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作者：Francis, J; LaFond, R; Olsson, P; Schipper, K
作者单位：Duke University; University of Wisconsin System; University of Wisconsin Madison
摘要：We investigate whether investors price accruals quality, our proxy for the information risk associated with earnings. Measuring accruals quality (AQ) as the standard deviation of residuals from regressions relating current accruals to cash flows, we find that poorer AQ is associated with larger costs of debt and equity. This result is consistent across several alternative specifications of the AQ metric. We also distinguish between accruals quality driven by economic fundamentals (innate AQ) v...
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作者：Chen, Q; Francis, J; Jiang, W
作者单位：Duke University; Columbia University
摘要：Bayesian learning implies decreasing weights on prior beliefs and increasing weights on the accuracy of the analyst's past forecast record, as the number of forecast errors comprising her forecast record (its length) increases. Consistent with this model of investor learning, empirical tests show that investors' reactions to forecast news are increasing in the product of the accuracy and length of analysts' forecast records. Moreover, the Bayesian learning predicted by our model is more descri...
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作者：Louis, H
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
摘要：I analyze the effect of auditor choice on acquirers' values around merger announcements and the factors affecting the interaction between auditor size and the market reaction to merger announcements. I find that acquirers audited by non-Big 4 accounting firms outperform those audited by Big 4 firms. This effect is more pronounced when the targets are privately held and when the likelihood of the auditors playing a prominent advisory role increases. While the largest auditing firms are usually ...
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作者：Arya, A; Mittendorf, B
作者单位：University System of Ohio; Ohio State University; Yale University
摘要：Besides the commonly cited reasons for the use of stock options, including motivating employees, conserving cash, exploiting favorable accounting and tax treatment, and retaining managers, we demonstrate a complementary benefit of option-based compensation: options also prove efficient in matching managerial pay to ability. Options are useful because they force a manager to put his pay on the line. If a manager wants to overstate his worth to the firm, he must naturally also overstate the firm...
