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作者：Cadman, Brian; Carrizosa, Richard
作者单位：Utah System of Higher Education; University of Utah; University of California System; University of California Riverside
摘要：Equity compensation is granted out of an equity incentive plan that must be approved by shareholders and cedes discretion over equity grants to boards of directors. We predict and find that equity plan proposals give boards more discretion over grants when the firm faces greater labor market forces and more volatile stock returns. When examining votes, we find that shareholders are less likely to support plans with abnormal discretion. We also find that boards with more discretion grant more e...
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作者：Hillison, Sean M.; Vittori, Kamber D.
作者单位：Virginia Polytechnic Institute & State University; Northeastern University
摘要：Forward-looking information, often used by auditors to evaluate complex estimates and form conclusions about going-concern audit report modifications, is commonly disclosed voluntarily by U.S. public companies. We experimentally examine how this disclosure behavior affects auditors' skepticism toward such information. Prior research has shown that investors and analysts frequently interpret voluntarily disclosed forward-looking information as credible. We demonstrate that auditors, in contrast...
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作者：Maksymov, Eldar; Peecher, Mark; Sutherland, Andrew; Weber, Joseph
作者单位：Arizona State University; Arizona State University-Tempe; University of Illinois System; University of Illinois Urbana-Champaign; Massachusetts Institute of Technology (MIT)
摘要：Auditors are expected to identify and resolve material misstatements (MMs) in management's financial statements. However, beyond the audit opinion, the audit process is opaque. To address this, we independently survey 462 audit partners and interview 24 audit partners, CFOs, and audit committee members on how partners assess and address MM risk, resolve MMs, and the consequences of MMs. Partners identify MMs in approximately 9% (15%) of public (private) engagements and use qualitative factors ...
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作者：Gibbons, Brian
作者单位：Oregon State University
摘要：Complaints from institutional investors suggest that principles-based disclosure regimes that rely on financial materiality standards produce inadequate nonfinancial environmental and social (E & S) information. Using the staggered introduction of 40 country-level regulations that mandate disclosure, I document that reporting E & S information relates to increased investment from institutional owners and has material effects on firms' investment and financing decisions. Firms mandated to discl...
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作者：Zimmerman, Aleksandra Ally B.; Barr-Pulliam, Dereck; Lee, Joon-suk; Minutti-Meza, Miguel
作者单位：State University System of Florida; Florida State University; University of Louisville; University of Miami
摘要：Using Public Company Accounting Oversight Board (PCAOB) inspection data from 2006 to 2018, we examine the use of auditor-employed specialists in audit engagements. First, we find that the use of specialists is increasingly prevalent and related to clients' size and complex accounting estimates. Second, the use of specialists is positively associated with the incidence of audit process deficiencies (identified by PCAOB inspections) but is not associated with output-based audit-quality proxies (...
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作者：Chircop, Justin; Fabrizi, Michele; Malaspina, Patrizia; Parbonetti, Antonio
作者单位：Lancaster University; University of Padua
摘要：Mafia firms introduce distortions in the markets in which they operate, increasing the cost of doing business for peer firms. We investigate whether peers respond by increasing their tax avoidance and thus increasing funds available to compete with the Mafia firms. Using a sample of Italian anti-Mafia police actions that resulted in the removal of Mafia firms and a difference-in-differences approach, we find that peers reduce their tax avoidance following these actions. We further show that, f...
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作者：Carnes, Robert R.; Christensen, Dane M.; Madsen, Paul E.
作者单位：State University System of Florida; University of Florida; University of Oregon
摘要：Financial statement fraud generates many negative effects, including reducing people's willingness to participate in the stock market. If it also stigmatizes accounting, it may similarly adversely affect the quantity and quality of workers willing to become accountants, thereby potentially creating negative effects for years to come. We examine the impact of fraud on the labor force entering the accounting profession, which is a key input into the production of accounting information (i.e., th...
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作者：Balakrishnan, Karthik; Copat, Rafael; De La Parra, Daniela; Ramesh, K.
作者单位：Rice University; University of Texas System; University of Texas Dallas; University of North Carolina; University of North Carolina Chapel Hill
摘要：George Floyd's murder caused many firms to reveal how exposed they are to racial diversity issues. We examine investor and firm behaviors after this socially significant event to provide evidence on the valuation effects of the exposure and ensuing corporate responses. We develop a text-based measure of a firm's exposure to racial diversity issues from conference call transcripts and find that, after the murder of George Floyd, firms with diversity exposure experience a stock price decrease of...
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作者：Mahieux, Lucas; Sapra, Haresh; Zhang, Gaoqing
作者单位：Tilburg University; University of Chicago; University of Minnesota System; University of Minnesota Twin Cities
摘要：We investigate how provisioning models interact with bank regulation to affect banks' risk-taking behavior. We study an accuracy versus timeliness trade-off between an incurred loss model (IL) and an expected loss model (EL) such as current expected credit loss model or International Financial Reporting Standards 9. Relative to IL, even though EL improves efficiency by prompting earlier corrective action in bad times, it induces banks to originate either safer or riskier loans. Trading off ex ...
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作者：Zureich, Jacob
作者单位：Tilburg University
摘要：The controllability principle suggests that employees should not be held accountable for factors outside their control. This study develops novel theory to challenge that thinking. According to the theory, holding employees accountable for uncontrollable factors like peer performance can lead to improved decision-making by increasing how much employees learn from those uncontrollable factors. I expect this effect to occur because goal-focused employees only consider information that seems goal...
