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作者：Li, Feng
作者单位：University of Michigan System; University of Michigan
摘要：This paper examines the information content of the forward-looking statements (FLS) in the Management Discussion and Analysis section (MD&A) of 10-K and 10-Q filings using a Naive Bayesian machine learning algorithm. I find that firms with better current performance, lower accruals, smaller size, lower market-to-book ratio, less return volatility, lower MD&A Fog index, and longer history tend to have more positive FLSs. The average tone of the FLS is positively associated with future earnings ...
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作者：Elliott, W. Brooke; Krische, Susan D.; Peecher, Mark E.
作者单位：University of Illinois System; University of Illinois Urbana-Champaign
摘要：We examine how accounting transparency and investor base jointly affect financial analysts' expectations of mispricing (i.e., expectations of stock price deviations from fundamental value). Within a range of transparency, these two factors interactively amplify analysts' expectations of mispricing-analysts expect a larger positive deviation when a firm's disclosures more transparently reveal income-increasing earnings management and the firm's most important investors are described as transien...
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作者：Keung, Edmund; Lin, Zhi-Xing; Shih, Michael
作者单位：National University of Singapore
摘要：This study shows that firms collectively incur a cost for managing earnings and analyst expectations to meet earnings forecasts. We compare the coefficient in the regression of abnormal stock returns on earnings surprise (the earnings response coefficient [ERC]) across ranges of earnings surprises. The ERC for earnings surprises in the range [0, 1(sic)] is significantly lower than ERCs for earnings surprises in adjacent ranges for firm-quarters in the early and mid 2000s, but not for those in ...
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作者：Evans, John Harry, III; Nagarajan, Nandu J.; Schloetzer, Jason D.
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh; Georgetown University
摘要：Prior CEO turnover literature characterizes the board's decision as a choice between retaining versus replacing the CEO. We focus instead on the CEO's decision rights and introduce a third option in which the incumbent CEO is removed but retained on the board for an extended period, which we call Retention Light. Firms may benefit from Retention Light because former CEOs possess unique monitoring and advising abilities, but the former CEO could also exploit available decision rights for person...
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作者：Nikolaev, Valeri V.
作者单位：University of Chicago
摘要：Using a sample of over 5,000 debt issues, I test whether firms with more extensive use of covenants in their public debt contracts exhibit timelier recognition of economic losses in accounting earnings. Covenants govern the transfer of decision-making and control rights from shareholders to bondholders when a company approaches financial distress and thereby limit managers' abilities to expropriate bondholder wealth. Covenants are expected to constrain managerial opportunism, however, only if ...
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作者：Wang, Xue
作者单位：Emory University
摘要：I study how increased internal control disclosure requirements mandated by the Sarbanes-Oxley Act (SOX) affect annual corporate governance decisions regarding CFOs. Using non-CEO, non-COO executive officers as a control group, I find that CFOs of firms with weak internal controls receive lower compensation and experience higher forced turnover rates after the passage of SOX. In contrast, CFOs of firms with strong internal controls receive higher compensation and do not experience significant c...
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作者：Jackson, Scott B.; Liu, Xiaotao (Kelvin)
作者单位：University of South Carolina System; University of South Carolina Columbia; Northeastern University
摘要：We study the interrelation between conservatism and earnings management by examining the allowance for uncollectible accounts and its income statement counterpart, bad debt expense. We find that the allowance is conservative and that it has become more conservative over time. Conservatism may, however, facilitate earnings management. We find that firms manage bad debt expense downward (and even record income-increasing bad debt expense) to meet or beat analysts' earnings forecasts and that con...
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作者：Shivakumar, Lakshmanan
作者单位：University of London; London Business School
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作者：Han, Jun; Tan, Hun-Tong
作者单位：University of Hong Kong; Nanyang Technological University
摘要：We report the results of an experiment that shows that investors' earnings- and investment-related judgments are jointly influenced by their investment position ( long versus short), the news valence of guidance issued by management, and the amount of ambiguity in the guidance. Prior research indicates that guidance form ( point versus range) has no effect on investors' earnings estimates made in reaction to management guidance. We extend this research by showing that guidance form matters, co...
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作者：Wu, Jin (Ginger); Zhang, Lu; Zhang, X. Frank
作者单位：University System of Georgia; University of Georgia; Yale University; University of Michigan System; University of Michigan; National Bureau of Economic Research
摘要：Interpreting accruals as working capital investment, we hypothesize based on q-theory that firms optimally adjust their accruals in response to discount rate changes. A higher discount rate means less profitable investments and lower accruals, and a lower discount rate means more profitable investments and higher accruals. Our evidence supports this optimal investment hypothesis: (1) adding an investment factor into standard factor regressions substantially reduces the magnitude of the accrual...
