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作者：Na, Ke; Yan, Wenjia
作者单位：Nanjing University
摘要：This paper examines the effect of languages on corporate tax avoidance. We hypothesize and find that managers of firms in countries with languages that grammatically distinguish the future from the present (languages with a strong future time reference or FTR) perceive the potential future tax repayments and penalties to be more distant and therefore engage in more tax avoidance. Further tests exploiting the variation in language FTR within Switzerland and Belgium, which have different officia...
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作者：Thomas, Jake; Yao, Wentao; Zhang, Frank; Zhu, Wei
作者单位：Yale University; Xiamen University; University of Illinois System; University of Illinois Urbana-Champaign
摘要：We investigate two related questions about the trade-off between the short-term pressures on managers to meet earnings targets and the long-term environmental benefits of reduced pollution. Do firms release more toxins by cutting back on pollution abatement costs to boost earnings in years they meet earnings benchmarks? If so, is that relation weaker for firms with higher environmental ratings? Using Environmental Protection Agency (EPA) data on toxic emissions, we find that U.S. firms pollute...
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作者：Ranasinghe, Tharindra; Sivaramakrishnan, Konduru; Yi, Lin
作者单位：American University; Rice University; University of Houston System; University of Houston; University of Houston Clear Lake
摘要：Studies suggest that, pursuant to the implementation of SFAS 133, even sophisticated users of financial statements find it difficult to comprehend earnings implications of hedging derivatives. Moreover, due to stringent hedge accounting requirements under these standards, many economic hedges do not qualify for hedge accounting and are deemed ineffective for financial reporting purposes. Motivated by these considerations, we investigate the impact of hedging on earnings predictability by analy...
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作者：Ham, Charles G.; Kaplan, Zachary R.; Lemayian, Zawadi R.
作者单位：Washington University (WUSTL); Charles River Associates
摘要：We show analysts' own earnings forecasts predict error in their own forecasts of earnings at other horizons, which we argue provides a measure of the extent to which analysts inefficiently use information. We construct our measure by exploiting two sources of variation in analysts' incentives: (i) more recent forecasts have greater salience at the time of the earnings release so accuracy incentives are higher (lower) at shorter (longer) forecast horizons and (ii) analysts have greater incentiv...
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作者：Ball, Ray; Sadka, Gil; Tseng, Ayung
作者单位：University of Chicago; University of Texas System; University of Texas Dallas; Indiana University System; Indiana University Bloomington
摘要：We revisit the literature on using accounting earnings to estimate firm-level systematic risk, using macroeconomic indicators rather than listed-firm indexes to measure aggregate risk. Conventional listed-firm indexes reflect an unrepresentative subset of aggregate assets and thus are expected to substantially mismeasure aggregate and systematic risk (J Financ Econ 4, 129-176, Roll 1977). That choice dictates using earnings rather than returns to measure firm-level outcomes. Earnings and macro...
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作者：Ballew, Hailey; Iselin, Michael; Nicoletti, Allison
作者单位：Rice University; University of Minnesota System; University of Minnesota Twin Cities; University of Pennsylvania
摘要：This paper examines the effects of accounting-based thresholds in regulation on growth decisions in the banking industry. To investigate this relation we study changes in growth around the $10 billion asset threshold specified in the Dodd-Frank Act. We first document that, in the years after the new threshold-based regulations are announced, banks slow their asset growth as they approach the threshold and then accelerate their asset growth as they cross the threshold. Next, we document the pri...
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作者：Pawliczek, Andrea; Skinner, A. Nicole; Wellman, Laura A.
作者单位：University of Colorado System; University of Colorado Boulder; University System of Georgia; University of Georgia; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
摘要：We examine whether broad-based public engagement by institutional investors influences the behavior of portfolio firms. We investigate this question in the context of BlackRock's annual Dear CEO letter, which in recent years has called for portfolio firms to acknowledge and quantify the impact of environmental and regulatory factors on their firms. We find that portfolio firms' disclosures during the post-letter period reflect topics similar to those discussed in the letters, controlling for a...
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作者：Kim, Jung Min; Taylor, Daniel J.; Verrecchia, Robert E.
作者单位：University of Pennsylvania
摘要：Classical models of voluntary disclosure feature two economic forces: the existence of an adverse selection problem (e.g., a manager possesses some private information) and the cost of ameliorating the problem (e.g., costs associated with disclosure). Traditionally these forces are modelled independently. In this paper, we use a simple model to motivate empirical predictions in a setting where these forces are jointly determined--where greater adverse selection entails greater costs of disclos...
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作者：Donovan, John; Jennings, Jared; Koharki, Kevin; Lee, Joshua
作者单位：University of Notre Dame; Washington University (WUSTL); Purdue University System; Purdue University; Brigham Young University
摘要：We use machine learning methods to create a comprehensive measure of credit risk based on qualitative information disclosed in conference calls and in management's discussion and analysis section of the 10-K. In out-of-sample tests, we find that our measure improves the ability to predict credit events (bankruptcies, interest spreads, and credit rating downgrades), relative to credit risk measures developed by prior research (e.g., z-score). We also find our measure based on conference calls e...
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作者：Shao, Shuai; Stoumbos, Robert; Zhang, X. Frank
作者单位：Zhejiang University; Columbia University; Yale University
摘要：The literature shows that earnings have come to explain less stock price movement over time, suggesting that firm fundamental information has become less important. In this paper, we replace earnings with earnings announcement returns as a measure of firm fundamental news and find that these firm fundamentals have come to explain more price movement over time. In the years after 2003, earnings announcement returns explain roughly 20% of the annual return-almost twice as much as they did before...
