Journal of Accounting and Economics

最新文章

• With a Grain of Salt: Investor Reactions to Uncertain News and (Non)disclosure AI翻译
  作者：Libgober, Jonathan; Michaeli, Beatrice; Wiedman, Elyashiv
  作者单位：University of Southern California; University of California System; University of California Los Angeles; Hebrew University of Jerusalem
  摘要：We examine how external news with uncertain precision influences investor beliefs, market prices, and corporate disclosures. We find that good external (and public) news is taken with a grain of salt - specifically, it is perceived as unlikely to be precise - confirming investor beliefs that nondisclosing managers are hiding unfavorable (private) information. As a result, better external news may paradoxically lead to lower market valuation. Overall, we find that, amid management silence, equi...
• Mandatory disclosures and opportunism: Evidence from repurchases AI翻译
  作者：Bratten, Brian; Huang, Meng; Jenkins, Nicole Thorne; Xie, Hong
  作者单位：University of Kentucky; University System of Ohio; University of Toledo; University of Virginia
  摘要：We examine the effect of disclosure requirements on managers' stock repurchase decisions. In 2003, the SEC amended Rule 10b-18, significantly increasing the disclosure requirements for and transparency of stock repurchases for all issuers. While stock repurchases are often used by firms to efficiently return capital to shareholders, they can also be used opportunistically to increase earnings per share. We find that the 2003 SEC amendment enables investors to detect and discount opportunistic ...
• Gone but not forgotten: Investor reaction to excluded recurring expenses AI翻译
  作者：Griffin, Laura; Mcinnis, John
  作者单位：University of Colorado System; University of Colorado Boulder; University of Texas System; University of Texas Austin
  摘要：Roughly two decades ago, standard setters mandated recognition of two controversial expenses: stock-based compensation (SBC) and amortization of intangibles from acquisitions (AMT). Today, most firms undo GAAP by excluding these recurring expenses from earnings as part of their nonGAAP reporting. Do investors agree? Using short-window returns around quarterly earnings announcements, we find investors react similarly to unexpected SBC/AMT, regardless of firms' exclusion reporting. Further, amon...
• Contract contingencies and uncertainty: Evidence from product market contracts AI翻译
  作者：Hui, Kai Wai; Oh, Jun; She, Guoman; Yeung, P. Eric
  作者单位：University of Hong Kong; Purdue University System; Purdue University; Cornell University
  摘要：We study contingencies written in firms' material product market contracts, focusing on the theoretical prediction of uncertainty as an important determinant. We identify contract contingencies from firms' public regulatory filings and examine the effects of general business uncertainty and specific innovation-related uncertainty. To enhance causal inference, we utilize two major business shocks (i.e., the 2008 Financial Crisis and the COVID pandemic) and the diffusion of 29 disruptive innovat...
• Do financial disclosures affect corporate sustainability practices?☆ AI翻译
  作者：Jing, Chenxing; Xu, Bin; Zuo, Luo
  作者单位：University of International Business & Economics; University of Reading; National University of Singapore
  摘要：We examine whether financial disclosures affect firm sustainability practices. Using mandatory segment reporting in the United States as the setting, we find that disclosing financial information about previously hidden segments in polluting industries reduces toxic emissions from firm plants. This effect is consistent with the notion that segment disclosures enhance monitoring of firm pollution by highlighting the financial materiality of polluting segments and drawing stakeholders' attention...
• Political costs and strategic corporate communication AI翻译
  作者：Cuny, Christine; Kim, Jungbae; Mehta, Mihir N.
  作者单位：New York University; Singapore Management University; University of Chicago
  摘要：When subject to public scrutiny, do firms strategically use advertising to reduce expected political costs? Advertising can ease public concerns, thereby reducing the pressure on politicians to act harshly against scrutinized firms and their industries. We use repeated congressional testimony by industry members as a novel way to identify political scrutiny. Our central finding is that scrutinized industries increase their advertising spending 132 percent more in the electorates of politicians...
• The asset pricing and real implications of relationship intensity disclosure AI翻译
  作者：Jiang, Xu; Mondria, Jordi; Yang, Liyan
  作者单位：Duke University; University of Toronto; University of Toronto
  摘要：Investors in financial markets are often uncertain about the relationship intensity between firms and have to rely on firms' disclosure of such relationship intensity. We analytically study the asset pricing implications of this relationship intensity uncertainty and how such uncertainty affects firms' incentives to form and disclose their relationship intensities (i.e., the real implications). We find that while such disclosure has a positive price impact by increasing the expected cash flow,...
• Does observability of ratings shopping improve ratings quality? AI翻译
  作者：Kallapur, Sanjay; Khizer, Abdul; Manchiraju, Hariom; Vijayaraghavan, Rajesh
  作者单位：Indian School of Business (ISB); Arizona State University; Arizona State University-Tempe; University of British Columbia
  摘要：Ratings shopping is a well-documented cause for ratings inflation by credit rating agencies (CRAs). Its unobservability makes it difficult for market participants to undo it. In this paper, we exploit a unique regulation in India that requires CRAs to disclose ratings that were solicited but were eventually rejected by issuers. This regulation, which aims to enhance the transparency in the ratings process, allows us to empirically examine whether these disclosures influence ratings shopping an...
• Green innovation and firms' financial and environmental performance: The roles of pollution prevention versus control AI翻译
  作者：Cheng, Qiang; Lin, An-Ping; Yang, Mengjie
  作者单位：Singapore Management University; Monash University
  摘要：This study examines the effects of firms' green innovation on their future financial and environmental performance. If pollution is primarily a manifestation of wasted resources, then investments in pollution prevention technologies can both reduce the environmental impact of production and improve financial performance. In contrast, investments in pollution control technologies likely reduce the environmental impact of production without improving financial performance. Using green patents to...
• Preference dynamics and risk-taking incentives AI翻译
  作者：Cen, Xiao; Li, Nan; Tang, Chao; Wang, Juanting
  作者单位：Texas A&M University System; Texas A&M University College Station; University of Minnesota System; University of Minnesota Twin Cities; Hong Kong University of Science & Technology; Shanghai University of Finance & Economics
  摘要：This study explores the relationship between executive compensation and the preference dynamics of managers and shareholders. Our analysis centers on the theoretical prediction that changes in firms' asset value can differentially affect the risk-taking preferences of the two groups, potentially influencing the optimal compensation policy. Utilizing local real estate price changes to identify variations in firms' asset value, we find that a decrease in asset value leads to more risk-taking inc...