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作者：Choi, Ahrum; Kim, Jeong-Bon; Lee, Jay Junghun; Park, Jong Chool
作者单位：Sungkyunkwan University (SKKU); City University of Hong Kong; University of Massachusetts System; University of Massachusetts Boston; State University System of Florida; University of South Florida
摘要：We investigate whether and how the market for corporate control affects the demand for audit service in a cross-country setting. In so doing, we exploit the staggered enactments of merger and acquisition (M&A) laws as an exogenous shock that substantially increases takeover pressure. We find that firms are more likely to choose Big 4 auditors in the period after the enactment of M&A laws, suggesting that the takeover pressure heightened by the passage of M&A laws increases the demand for audit...
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作者：Armstrong, Christopher S.; Heinle, Mirko S.; Luneva, Irina
作者单位：Stanford University; University of Pennsylvania
摘要：Standard Bayesians' beliefs converge when they receive the same piece of new information. However, when agents initially disagree and have uncertainty about the precision of a signal, their disagreement might instead increase, despite receiving the same information. We demonstrate that this divergence of beliefs leads to a unimodal effect of the absolute surprise in the signal on trading volume. We show that this prediction is consistent with the empirical evidence using trading volume around ...
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作者：Liu, Zheng; Zhang, Ning
作者单位：Hong Kong Baptist University; Queens University - Canada
摘要：We examine the effect of digital financial reporting on firm productivity. Information frictions represent a constraint that impedes efficient resource allocation and a major source of such frictions stems from the fact that firms' production functions (the conversion from inputs to outputs) are not observable to corporate outsiders. Digital communication of corporate financial data fundamentally changes how firm-specific information is disclosed, released, and disseminated by mitigating infor...
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作者：Down, Andrea K.; Williams, Christopher D.; Wittenberg-Moerman, Regina
作者单位：University of Toronto; University Toronto Scarborough; University of Michigan System; University of Michigan; University of Southern California
摘要：We investigate whether lead arrangers opportunistically withhold their private information from participant lenders and how this behavior affects the structure of loan syndicates. Using the setting of Food and Drug Administration (FDA) inspections and the exogenous shock to the inspection disclosure regime with the passage of the Open Government Initiative (OGI), we show that, following bad inspection outcomes, lead arrangers retain a larger loan share in the post-OGI period, when inspection o...
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作者：Bernard, Darren; Juliani, Elsa Maria; Lawrence, Alastair
作者单位：University of Washington; University of Washington Seattle; INSEAD Business School; University of London; London Business School
摘要：Executives have incentives to predict the price impact of disclosures to inform their insider trades, reporting discretion, and operating decision-making. Yet the extent to which they can do so accurately is unknown. We conduct a field study to provide direct evidence on executives' accuracy, recruiting over 650 U.S. public company executives to share their predictions of the stock price response to their companies' second quarter 2020 quarterly reports. Despite the market volatility and uncer...
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作者：Casey, Ryan J.; Ruch, George W.
作者单位：University of Denver
摘要：We compare the abilities of earnings and cash flows to predict future cash flows. We take a novel approach in that we perform apples-to-apples comparisons of five earnings components measured on an accrual basis with their equivalents measured on a cash basis. On the one hand, we find that the operating profit component (sales net of cost of goods sold and SG&A expense) outperforms its cash-basis equivalent in predicting future cash flows. On the other hand, we find that the depreciation expen...
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作者：Anantharaman, Divya; Chuk, Elizabeth
作者单位：Rutgers University System; Rutgers University New Brunswick; Rutgers University Newark; University of California System; University of California Irvine
摘要：The funding policy for defined benefit pension plans covering government employees represents an important decision for governments sponsoring those plans. Many state and local government plans have become severely underfunded (e.g., New Jersey, Illinois, and Detroit), raising concerns about whether governments are contributing enough to their pensions. Governmental Accounting Standards Board Statements 67/68 (GASB 67/68) fundamentally alter the financial reporting of pension liabilities, by (...
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作者：Amiram, Dan; Owens, Edward
作者单位：Tel Aviv University; Utah System of Higher Education; University of Utah
摘要：We investigate an unexplored channel-loss given default (LGD)-through which accounting information can shape the design of debt contracts. Using a sample of defaulted bonds, we find that borrower accounting information available at contract initiation possesses significant power for predicting realized LGD at the subsequent default date. We then use this model to construct an accounting-based measure of expected LGD at the contracting date for a large sample of bond issuances. We find that thi...
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作者：Luo, Mei; Yu, Shuangchen
作者单位：Tsinghua University
摘要：This study compares and contrasts US and international accounting and financial reporting practices for cryptocurrency. We analyze the financial statements of 40 global companies that have exposure to cryptocurrencies, including cryptocurrency purchases, mining, payments, trading, and investments in ICOs and early-stage blockchain ventures. We document inconsistency between Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS), as well as distor...
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作者：Barnett, Michael L.; Dimitrov, Valentin; Gao, Feng
作者单位：Rutgers University System; Rutgers University New Brunswick; Rutgers University Newark; Rutgers University System; Rutgers University New Brunswick
摘要：We investigate whether shareholders consider firms' performance in corporate social responsibility (CSR) when submitting proxy proposals. We find that share-holders are more likely to propose governance changes when a firm has more CSR strengths and more CSR concerns. The results hold across popular proposal types, different sponsors, and different categories of CSR. We find similar results for social proposals. Although CSR strengths and concerns are not associated with the percentage of vote...
