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作者：Cazier, Richard A.; Huang, Jianning; Zhou, Fuzhao
作者单位：University of North Texas System; University of North Texas Denton; University of Manitoba; University System of Ohio; Bowling Green State University
摘要：We assess a recent SEC initiative that suspends inactive shell companies from trading in over-the-counter (OTC) stock markets. Critics argue these suspensions do little to reduce fraud in OTC markets because they simply redirect fraudsters' efforts to other OTC targets. Building on research that finds regulatory intervention among exchange-listed firms often produces positive spillovers, we test whether shell company suspensions are associated with fraud deterrence among other OTC firms operat...
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作者：Jennings, Jared; Kim, Jung Min; Lee, Joshua; Taylor, Daniel
作者单位：Washington University (WUSTL); Northwestern University; Brigham Young University; University of Pennsylvania
摘要：We show theoretically and empirically that measurement error can bias in favor of falsely rejecting a true null hypothesis (i.e., a false positive) and that regression models with high-dimensional fixed effects can exacerbate measurement error bias and increase the likelihood of false positives. We replicate inferences from prior work in a setting where we can directly observe the amount of measurement error and show that the combination of measurement error and fixed effects materially inflat...
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作者：Chen, Wilbur; Srinivasan, Suraj
作者单位：Hong Kong University of Science & Technology; Harvard University
摘要：We examine firm value and performance implications of the growing trend of nontechnology companies engaging in activities relating to digital technologies. We measure digital activities in firms based on the disclosure of digital words in the business description section of 10-Ks. Digital activities are associated with a market-to-book ratio 8%-26% higher than industry peers, and only 25% of the differences in market-to-book is explained by accounting capitalization restrictions. To control fo...
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作者：Dyck, Alexander; Morse, Adair; Zingales, Luigi
作者单位：University of Toronto; University of California System; University of California Berkeley; National Bureau of Economic Research; University of Chicago; Centre for Economic Policy Research - UK
摘要：We provide a lower-bound estimate of the undetected share of corporate fraud. To identify the hidden part of the iceberg, we exploit Arthur Andersen's demise, which triggered added scrutiny on Arthur Andersen's former clients and thereby increased the detection likelihood of preexisting frauds. Our evidence suggests that in normal times only one-third of corporate frauds are detected. We estimate that on average 10% of large publicly traded firms are committing securities fraud every year, wi...
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作者：Cassell, Cory A.; Kleppe, Tyler J.; Shipman, Jonathan E.
作者单位：University of Arkansas System; University of Arkansas Fayetteville; University of Kentucky
摘要：We investigate the influence and implications of retail shareholder participation in the proxy voting process. Using the shareholder vote on auditor ratification-a setting which facilitates the identification of an informed vote-we find that, on average, shareholder votes against auditor ratification are not associated with audit failures but are strongly associated with investment performance. We next consider how these relations vary with the composition of a company's voting base and find c...
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作者：Chen, Hui; Pfeiffer, Thomas
作者单位：University of Zurich; University of Vienna
摘要：We study a publicly traded firm that cares about its short-term stock market performance while collaborating with a privately owned firm in a business alliance. The firms each undertake a relation-specific investment and then bargain over the allocation of the joint surplus generated by the alliance. The public firm's myopic market concerns affect both the total size of the surplus and how the firms divide the surplus. While the public firm always becomes more aggressive and obtains more of th...
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作者：Matsumura, Ella Mae; Prakash, Rachna; Vera-Munoz, Sandra C.
作者单位：University of Wisconsin System; University of Wisconsin Madison; University of Mississippi; University of Notre Dame
摘要：Managers are required to disclose material climate risk in Form 10-K, but their decision whether or not to disclose is confounded by the lack of consensus on whether climate risk is material to the firms, as well as uncertainty about enforcement of disclosure regulations. Using the SASB Materiality Map (TM) to proxy for market expectations of climate risk materiality, we test whether the association between disclosing climate risk in 10-Ks and firm risk (proxied by cost of equity (COE)) varies...
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作者：Canace, Thomas; Li, Jiao; Ma, Tao
作者单位：Wake Forest University; Nova Southeastern University; Texas Tech University System; Texas Tech University
摘要：Exploiting an exogenous decrease in analyst access to private information, we show that firms with analyst following (test firms) experience a significant reduction in R&D investment, relative to firms without analyst following (control firms), after Reg FD. We also document that the negative impact on firms ' R&D investment after Reg FD is borne out in firms' innovation outputs measured by patents. Additional analysis reveals that the decrease in R&D investment concentrates among test firms f...
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作者：Floros, Ioannis V.; Sivaramakrishnan, Konduru; Zufarov, Rustam
作者单位：University of Wisconsin System; University of Wisconsin Milwaukee; Rice University; University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital
摘要：We develop a firm-level private information index with three unique features. First, the index is a direct measure of the nature and magnitude of private information that is proprietary. Second, it is multi-dimensional. Third, it is not specific to any setting. We conduct several tests to validate this index against firm-specific and industry-level proprietary cost proxies. We then use it to examine the role of proprietary information in a firm's equity financing choice between private investm...
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作者：Barinov, Alexander; Park, Shawn Saeyeul; Yildizhan, Celim
作者单位：University of California System; University of California Riverside; Yonsei University; Koc University
摘要：We show that the post-earnings announcement drift (PEAD) is stronger for conglomerates than single-segment firms. Conglomerates, on average, are larger than single segment firms, so it is unlikely that limits-to-arbitrage drive the difference in PEAD. Rather, we hypothesize that market participants find it more costly and difficult to understand firm-specific earnings information regarding conglomerates, as they have more complicated business models than single-segment firms. This in turn slow...
