-
作者：Li, Yinghua; Zhang, Liandong
作者单位：Arizona State University; Arizona State University-Tempe; City University of Hong Kong
摘要：Using a natural experiment (Regulation SHO), we show that short selling pressure and consequent stock price behavior have a causal effect on managers' voluntary disclosure choices. Specifically, we find that managers respond to a positive exogenous shock to short selling pressure and price sensitivity to bad news by reducing the precision of bad news forecasts. This finding on management forecasts appears to be generalizable to other corporate disclosures. In particular, we find that, in respo...
-
作者：Griffith, Emily E.; Hammersley, Jacqueline S.; Kadous, Kathryn; Young, Donald
作者单位：University of Wisconsin System; University of Wisconsin Madison; University System of Georgia; University of Georgia; Emory University; University System of Georgia; Georgia Institute of Technology
摘要：Auditors experience significant problems auditing complex accounting estimates, and this increasingly puts financial reporting quality at risk. Based on analyses of the specific errors that auditors commit, we propose that auditors need to be able to think more broadly and incorporate information from a variety of sources in order to improve audit quality for these important accounts. We experimentally demonstrate that a deliberative mindset intervention improves auditors' ability to identify ...
-
作者：Law, Kelvin K. F.; Mills, Lillian F.
作者单位：Tilburg University; University of Texas System; University of Texas Austin
摘要：Using a new measure of financial constraints based on firms' qualitative disclosures, we find that financially constrained firmsfirms that use more negative words in their annual reportspursue more aggressive tax planning strategies as evidenced by: (1) higher current and future unrecognized tax benefits, (2) lower short- and long-run current and future effective tax rates, (3) increase in tax haven usage for their material operations, and (4) higher proposed audit adjustments from the Interna...
-
作者：Gerakos, Joseph; Syverson, Chad
作者单位：University of Chicago; National Bureau of Economic Research
摘要：The audit market's unique combination of featuresits role in capital market transparency, mandated demand, and concentrated supplymeans it receives considerable attention from policy makers. We explore the effects of two market scenarios that have been the focus of policy discussions: mandatory audit firm rotation and further supply concentration due to the exit of a Big 4 audit firm. To do so, we first estimate publicly traded firms' demand for auditing services, allowing the services provide...
-
作者：Tan, H-T; Hunton, J. E.; Libby, R.
-
作者：Piotroski, Joseph D.; Wong, T. J.; Zhang, Tianyu
作者单位：Stanford University; Chinese University of Hong Kong
摘要：This paper tests the proposition that politicians and their affiliated firms (i.e., firms operating in their province) temporarily suppress negative information in response to political incentives. We examine the stock price behavior of Chinese listed firms around two visible political eventsmeetings of the National Congress of the Chinese Communist Party and promotions of high-level provincial politiciansthat are expected to asymmetrically increase the costs of releasing bad news. The costs c...
-
作者：Ball, Ray; Li, Xi; Shivakumar, Lakshmanan
作者单位：University of Chicago; Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University; University of London; London Business School
摘要：We outline several properties of IFRS that potentially affect the contractibility or the transparency of financial statement information, and hence the use of that information in debt contracts. Those properties include the increased choice among accounting rules IFRS gives to managers, enhanced rule-making uncertainty, and increased emphasis on fair value accounting. Consistent with reduced contractibility of IFRS financial statement information, we find a significant reduction in accounting-...
-
作者：Park, Hyungshin; Vrettos, Dimitris
作者单位：Southern Methodist University
摘要：We offer evidence that the use of relative performance evaluation (RPE) in CEOs' incentive contracts influences the effect of risk-taking incentives on both the magnitude and composition of firm risk. We find that, when the incentive design lacks RPE features, the incentive portfolio vega motivates CEOs to increase total risk through the systematic component because it can be hedged. In contrast, when the incentive design includes RPE features, CEOs prefer idiosyncratic risk because RPE filter...
-
作者：Allee, Kristian D.; Deangelis, Matthew D.
作者单位：University of Wisconsin System; University of Wisconsin Madison; University System of Georgia; Georgia State University
摘要：We examine tone dispersion, or the degree to which tone words are spread evenly within a narrative, to evaluate whether narrative structure provides insight into managers' voluntary disclosures and users' responses to those disclosures. We find that tone dispersion is associated with current aggregate and disaggregated performance and future performance, managers' financial reporting decisions, and managers' incentives and actions to manage perceptions. Furthermore, we find that tone dispersio...
-
作者：Milian, Jonathan A.
作者单位：State University System of Florida; Florida International University
摘要：Prior research has documented that arbitrage activity significantly reduces or eliminates stock market anomalies. However, if anomalies arise due to unsophisticated investors' behavioral biases, then these same biases can also apply to unsophisticated arbitrageurs and thereby disrupt the arbitrage process. Consistent with a disruption in the arbitrage process for the post-earnings announcement drift anomaly, I document that the historically positive autocorrelation in firms' earnings announcem...
