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作者：Drymiotes, George; Hemmer, Thomas
作者单位：University of Cyprus; Rice University
摘要：In this paper we explore the role of accruals in determining earnings quality from both a stewardship and a valuation perspective. We show that the valuation and stewardship qualities of accrual accounting are maximized by either an aggressive or a conservative accrual strategy. Furthermore, accrual strategy choices can be delegated to management as it does not benefit by implementing a strategy that is not in the best interests of the shareholders. We also investigate the implications of accr...
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作者：Bloomfield, Robert
作者单位：Cornell University
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作者：Gormley, Todd A.; Kim, Bong Hwan; Martin, Xiumin
作者单位：University of Pennsylvania; American University; Washington University (WUSTL)
摘要：This paper investigates the impact of changes in the banking sector on firms timely recognition of economic losses. In particular, we focus on the entry of foreign banks into India during the 1990s, which likely causes an exogenous increase in lender demand for timely loss recognition. Analyzing variation in both the timing and the location of the new foreign banks entries, we find that foreign bank entry is associated with more timely loss recognition and this increase is positively related t...
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作者：Ben-Nasr, Hamdi; Boubakri, Narjess; Cosset, Jean-Claude
作者单位：King Saud University; American University of Sharjah; Universite de Montreal; HEC Montreal
摘要：In this paper, we investigate the political determinants of the cost of equity using a unique data set of 236 firms privatized between 1987 and 2006 in 38 countries. We find robust evidence that the cost of equity is increasing in government ownership. We also show that the cost of equity is significantly related to political orientation and the extent of government expropriation. Furthermore, we report a less pronounced effect of state ownership on the cost of equity in more populist governme...
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作者：Bushman, Robert M.; Wittenberg-Moerman, Regina
作者单位：University of North Carolina; University of North Carolina Chapel Hill
摘要：We investigate the role played by the reputation of lead arrangers of syndicated loans in mitigating information asymmetries between borrowers and lenders. We hypothesize that syndications by more reputable arrangers are indicative of higher borrower quality at loan inception and more rigorous monitoring during the term of the loan. We investigate whether borrowers with more reputable lead arrangers realize superior performance subsequent to loan origination relative to borrowers with less rep...
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作者：Sedatole, Karen L.; Vrettos, Dimitris; Widener, Sally K.
作者单位：Michigan State University; Southern Methodist University; Rice University
摘要：Using archival data from the U.S. passenger airline industry, this study examines whether management control mechanisms aimed at mitigating moral hazard explain outsourcing decisions over and above transaction cost economics (TCE) determinants documented in prior research. Consistent with TCE theory, we find that in-house production efficiencies and our proxy for transaction risk (i.e., deriving from transaction infrequency, transaction complexity, and relationship-specific investments) signif...
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作者：Christensen, Hans B.; Nikolaev, Valeri V.
作者单位：University of Chicago
摘要：Building on contract theory, we argue that financial covenants control the conflicts of interest between lenders and borrowers via two different mechanisms. Capital covenants control agency problems by aligning debt holdershareholder interests. Performance covenants serve as trip wires that limit agency problems via the transfer of control to lenders in states where the value of their claim is at risk. Companies trade off these mechanisms. Capital covenants impose costly restrictions on the ca...
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作者：Gopalan, Radhakrishnan; Jayaraman, Sudarshan
作者单位：Washington University (WUSTL)
摘要：We examine earnings management practices of insider controlled firms across 22 countries to shed light on the link between consumption of private benefits and earnings management. Insider controlled firms are associated with more earnings management than noninsider controlled firms in weak investor protection countries. Consistent with the private benefits motive, insider controlled firms with greater divergence between cash-flow rights and control rights are associated with more earnings mana...
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作者：Nezlobin, Alexander
作者单位：New York University
摘要：This paper studies accrual accounting and equity valuation in the context of a firm that makes repeated and overlapping investments in productive capacity. The analysis identifies a particular accrual accounting (depreciation) rule that is termed replacement cost accounting because the book value of existing capacity assets is set equal to the value that such assets would have if a competitive market were to exist for used assets. It is shown that replacement cost accounting aggregates past in...
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作者：Brown, Nerissa C.; Christensen, Theodore E.; Elliott, W. Brooke; Mergenthaler, Richard D.
作者单位：University System of Georgia; Georgia State University; Brigham Young University; University of Illinois System; University of Illinois Urbana-Champaign; University of Iowa
摘要：We examine the influence of investor sentiment on managers discretionary disclosure of pro forma (adjusted) earnings metrics in earnings press releases. We find that managers propensity to disclose an adjusted earnings metric (especially one that exceeds the GAAP earnings number) increases with the level of investor sentiment. Furthermore, our analyses suggest that, as investor sentiment increases, managers: (1) exclude higher levels of both recurring and nonrecurring expenses in calculating t...
