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作者：Ciconte III, William A.; Kitto, Andrew R.
作者单位：University of Kansas; University of Massachusetts System; University of Massachusetts Amherst
摘要：This study investigates the relation between audit competition, audit quality, and auditor labor hours. Using proprietary data on auditor realization rates, we construct new measures of competition based on theory predicting that abnormal profits will quickly disappear when competition is high but persist over multiple periods when competition is low. We find consistent evidence of persistent abnormal profits among U.S. Big 4 engagements and that individual offices earn persistent abnormal ret...
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作者：Nessa, Michelle l.; Persson, Anh v.; Song, Jane z.; Towery, Erin m.; Vernon, Mary e.
作者单位：Michigan State University; University of Illinois System; University of Illinois Urbana-Champaign; University of Missouri System; University of Missouri Columbia; University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital
摘要：The Organization for Economic Cooperation and Development introduced country-by-country reporting (CbCR) for multinational enterprises (MNEs) to help tax authorities combat tax-motivated income shifting. This study uses confidential U.S. tax administrative data from 2011 to 2018 to examine the effect of U.S. CbCR adoption on the tax-motivated income shifting and real activities of U.S. MNEs. We first document that while U.S. CbCR provides the Internal Revenue Service with incremental informati...
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作者：Amberger, Harald; Gallemore, John; Wilde, Jaron
作者单位：Vienna University of Economics & Business; University of North Carolina; University of North Carolina Chapel Hill; University of Iowa
摘要：Effective policymakers must balance the demands of formulating a corporate tax system that raises revenue and spurs economic activity (e.g., investment) while promoting a level playing field across firms. Balancing these tradeoffs has likely caused tax systems to become more complex over time, increasing firms' difficulty in understanding and complying with tax regulations. We investigate the impact of tax system complexity on the responsiveness of firm-level investment to tax policy changes. ...
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作者：Goyal, Vidhan K.; Urban, Daniel; Zhao, Wenting
作者单位：Hong Kong University of Science & Technology; Erasmus University Rotterdam - Excl Erasmus MC; Erasmus University Rotterdam; Technical University of Munich
摘要：We study how stock index inclusion affects corporate financing using a global sample of 198 index events-primarily new index launches-across 21 markets. Firms added to indexes issue more public debt but not equity, leading to a sustained increase in leverage. Inclusion draws greater attention from analysts and the media and increases the likelihood of receiving credit ratings. As a result, indexed firms benefit from more liquid bond markets and lower yield spreads, prompting greater reliance o...
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作者：Sherwood, Matthew G.
作者单位：University of Massachusetts System; University of Massachusetts Amherst
摘要：Auditors frequently outsource audit work to offshore Shared Service Centers (SSCs) to reduce costs and ease the workload burdens of audit team members. However, concerns persist about whether these benefits come at the expense of audit quality. Using proprietary audit engagement-level data, I evaluate whether greater SSC usage by Big 4 audit teams has an association with either, or both, audit quality and audit costs. I find that SSC usage is nearly universal in Big 4 audits, with the percenta...
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作者：Cuny, Christine; Mehta, Mihir N.; Zhao, Wanli
作者单位：New York University; University of Michigan System; University of Michigan; Bocconi University
摘要：Substantial evidence suggests that regulatory agencies in the United States can be captured by the politicians who oversee them. We provide novel evidence of a federal agency in which capture is limited: the United States Patent and Trademark Office. Although patent applications from politically connected applicants are slightly more likely to be approved despite being of lower ex post quality, additional analyses suggest these outcomes are not indicative of capture. In particular, the disclos...
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作者：Kang, Ya; Lin, Yupeng; Qiu, Yang
作者单位：Chinese University of Hong Kong; National University of Singapore; Zhejiang University
摘要：This study examines the spillover effect of bank financial misconduct on the uninsured deposits of peer banks within local markets. We first validate that misconduct banks experience an increase in deposit spreads and a corresponding outflow of deposits following the misconduct. We then show local peer banks exhibit divergent deposit responses, contingent on how misconduct is perceived by information recipients in different economic contexts. During normal periods, depositors receiving a negat...
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作者：Deller, Carolyn; Gallino, Santiago
作者单位：University of Pennsylvania
摘要：This paper explores the influence of two fixed payment arrangements-time-based and output-based wages-on worker behavior and performance in a multidimensional task setting. We examine how these wages affect the time workers spend on individual units of a task and their work quality. We contend that fixed compensation schemes can implicitly communicate standards of acceptable work. Our empirical evidence from MTurk experiments and a laboratory experiment indicates that workers on output-based w...
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作者：Law, Kelvin K. F.; Tan, Jingdan
作者单位：Nanyang Technological University; Hong Kong Polytechnic University
摘要：Using data from over 4,000 Black Lives Matter (BLM) protests across 600 U.S. counties from 2014 to 2021, we examine how BLM activism shapes corporate diversity at different organizational levels. We develop an approach integrating OpenAI's GPT-4 with Chain-of-Thought prompting to classify race and ethnicity. In our validation tests, this method achieves higher accuracy than several tested open-source algorithms. Our main findings are as follows. First, although firms headquartered in protest-a...
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作者：Li, Xiaoxing; Brazel, Joseph F.; Gold, Anna; Leiby, Justin
作者单位：Norwegian School of Economics (NHH); North Carolina State University; Vrije Universiteit Amsterdam; University of Illinois System; University of Illinois Urbana-Champaign
摘要：As the use of audit data analytic tests (ADA) becomes increasingly established in practice, auditors will often confront situations in which they inherit ADA developed by others, as opposed to developing the ADA themselves. Despite the potential benefits of ADA, inheriting ADA could decrease auditors' skeptical actions by diminishing their psychological ownership of the ADA. In an experiment where an ADA identifies a fraud red flag, we find that auditors who inherited the ADA are less likely t...
