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作者：Na, Ke; Zhang, Ivy Xiying; Zhang, Yong
作者单位：University of California System; University of California Riverside; Hong Kong Polytechnic University
摘要：We explore the informational properties of earnings that compensation contracting requires for performance measurement. While conditional conservatism could be desirable because it can help to alleviate agency conflicts, its downside relates to the trade-off between conservatism and other important properties, such as persistence. We infer boards' performance measurement preferences from a novel dataset of earnings realizations used to calculate executive bonus payouts (which we label compensa...
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作者：Eulerich, Marc; Sanatizadeh, Aida; Vakilzadeh, Hamid; Wood, David A.
作者单位：University of Duisburg Essen; Northern Illinois University; University of Wisconsin System; University of Wisconsin Whitewater; Brigham Young University
摘要：ChatGPT frequently appears in the media, with many predicting significant disruptions, especially in the fields of accounting and auditing. Yet research has demonstrated relatively poor performance of ChatGPT on student assessment questions. We extend this research to examine whether more recent ChatGPT models and capabilities can pass major accounting certification exams including the Certified Public Accountant (CPA), Certified Management Accountant (CMA), Certified Internal Auditor (CIA), a...
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作者：Cheng, Mei; Zhang, Yuan
作者单位：University of Arizona; University of Texas System; University of Texas Dallas
摘要：Based on the recent SEC-mandated disclosures of CEO-worker pay ratios, we find that firms significantly decrease (increase) their CEO-worker pay ratios when their prior pay ratios are high (low) relative to peers. More importantly, the decrease in pay ratio among high pay ratio firms is significantly more pronounced with stronger stakeholder influences, proxied by employees with greater bargaining power, communities with higher social capital, and states with more stringent minimum wage legisl...
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作者：Schantl, Stefan F.; Wagenhofer, Alfred
作者单位：University of Melbourne; University of Graz
摘要：Empirical studies on the relationship between shareholder litigation and corporate disclosure obtain mixed results. We develop an economic model to capture the endogeneity between disclosure and litigation. Equilibrium disclosure is determined by two countervailing effects of litigation, a deterrence effect and an insurance effect. We derive four key results. (i) Decreasing litigation risk leads to less disclosure of very bad news, due to a weakening of the deterrence effect, but to more discl...
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作者：Hutchens, Michelle; Rego, Sonja O.; Williams, Brian
作者单位：University of Illinois System; University of Illinois Urbana-Champaign; Indiana University System; Indiana University Bloomington; IU Kelley School of Business
摘要：We examine the response of individual investors to firms' adoptions of SFAS 109 - Accounting for Income Taxes. We predict that SFAS 109 reduces disclosure-processing costs and provides new decision-useful information, reducing the information disadvantage of individual investors relative to more sophisticated investors. Using monthly individual investor stock holdings data and staggered firm adoptions of SFAS 109, we provide evidence that individual investors increased their holdings in firms ...
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作者：Schoenfeld, Jordan
作者单位：Utah System of Higher Education; University of Utah
摘要：Firms routinely manage their financial reporting systems on external cloud platforms that are susceptible to cyberattacks and data integrity issues. Therefore, the AICPA developed a special type of voluntary audit called a Service Organization Control audit (SOC audit) that evaluates this risk. This study conducts one of the first systematic analyses of the benefits and costs of these voluntary audits. Using hand-collected data from public firms, I find that (1) 29% of firms in the S&P 500 (re...
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作者：Donelson, Dain C.; Koutney, Colin Q.; Mills, Lillian F.
作者单位：University of Iowa; George Mason University; University of Texas System; University of Texas Austin
摘要：Nonrecurring income taxes are transitory items that exclusively affect earnings through tax expense. We conduct the first in-depth examination of nonrecurring income taxes to determine whether they are primarily attributable to economic events or managerial opportunism. We find that nonrecurring income taxes have little predictive power for future earnings, are not associated with meeting or beating analyst earnings forecasts, and are not associated with future tax expense restatements. We als...
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作者：Brown, Jennifer L.; Huston, G. Ryan; Wenzel, Brian S.
作者单位：Arizona State University; Arizona State University-Tempe; Texas Tech University System; Texas Tech University; McGill University
摘要：We examine an overlooked type of insider transaction-CEOs' stock gifts to family members. CEOs should prefer to make family stock gifts at relative price minima, consistent with an estate and gift tax planning strategy called an estate freeze. We demonstrate that CEO freeze gifts generally follow temporary price suppressions and precede significant price appreciation, leading to substantial estate tax savings. Further, we find positive market returns one and two years following disclosure of f...
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作者：Chen, Qi; Mayew, William J.; Yan, Huihao
作者单位：Duke University; City University of New York (CUNY) System; Baruch College (CUNY)
摘要：We find that earnings forecasts by analysts with more local peers, defined as analysts working in the same brokerage office who cover different firms headquartered in the same area, are more accurate. These heightened accuracy effects are concentrated in settings where local peers are particularly valuable, such as when analysts have less access to corporate management, when earnings are harder to forecast, and when analysts have stronger incentives to work hard. In examining the nature of the...
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作者：Dambra, Michael; Schonberger, Bryce; Wasley, Charles
作者单位：State University of New York (SUNY) System; University at Buffalo, SUNY; University of Colorado System; University of Colorado Boulder; University of Rochester
摘要：We draw on (Merton, The Journal of Finance 42:483-510, 1987) to develop predictions for the benefits of voluntary disclosures by firms pursuing an initial public offering (IPO) prior to when they begin providing regulated financial information via their IPO prospectus. We find that voluntarily issuing press releases and attending investor and industry conferences are common disclosure activities prior to filing the IPO prospectus. Consistent with these disclosures enhancing investor awareness,...
