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作者：Campbell, John L.; Cecchini, Mark; Cianci, Anna M.; Ehinger, Anne C.; Werner, Edward M.
作者单位：University System of Georgia; University of Georgia; University of South Carolina System; University of South Carolina Columbia; Wake Forest University; State University System of Florida; Florida State University; Rutgers University System; Rutgers University New Brunswick; Rutgers University Camden
摘要：Prior research finds that mandatory risk factor disclosures are informative in that they increase investors' assessments of the volatility of a firm's cash flows. However, the literature is silent as to whether these disclosures provide information about the level of future cash flows and, ultimately, their implications for firm value. We address this question by examining the association between Form 10-K risk factor disclosures and future cash flows levels and stock returns. We use the setti...
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作者：Beck, Amanda W.
作者单位：University System of Georgia; Georgia State University
摘要：Understanding how government officials exercise discretion over financial reporting is essential for citizens, regulators, and researchers to interpret and monitor financial performance. I examine two measures of discretion in governmental financial statements: abnormal accruals in full accrual financial statements, and other financing sources and uses in modified accrual financial statements. Using a unique dataset of hand-collected financial data from California, I document empirically that ...
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作者：Correia, Maria; Kang, Johnny; Richardson, Scott
作者单位：University of London; London School Economics & Political Science; University of London; London Business School
摘要：We examine whether fundamental measures of volatility are incremental to market-based measures of volatility in (i) predicting bankruptcies (out of sample), (ii) explaining cross-sectional variation in credit spreads, and (iii) explaining future credit excess returns. Our fundamental measures of volatility include (i) historical volatility in profitability, margins, turnover, operating income growth, and sales growth; (ii) dispersion in analyst forecasts of future earnings; and (iii) quantile ...
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作者：Hoopes, Jeffrey L.; Merkley, Kenneth J.; Pacelli, Joseph; Schroeder, Joseph H.
作者单位：University of North Carolina; University of North Carolina Chapel Hill; Indiana University System; Indiana University Bloomington
摘要：This study examines the relation between audit personnel salaries and office-level audit quality. We measure audit personnel salaries at the associate, senior, and manager ranks for Big 4 audit offices from 2004 to 2013, using unique individual-auditor-level data obtained from the U.S. Department of Labor. We find that offices that pay lower salaries have a higher percentage of clients that experience restatements. In related analyses, we also find lower levels of audit quality when audit empl...
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作者：Luo, Mei; Shao, Shuai; Zhang, Frank
作者单位：Tsinghua University; Zhejiang University; Yale University
摘要：We explore a unique regulatory change in China in 2007 that moves investment income in an income statement from below the line of operating income to above the line. We find that, post-regulatory change, firms report high investment income when core earnings (operating income excluding investment income) are low and vice versa. Investment income and core earnings exhibit a significantly negative correlation every year post regulation, in contrast to a significantly positive correlation beforeh...
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作者：Quinn, Phillip J.
作者单位：University of Washington; University of Washington Seattle
摘要：This paper investigates whether adoptions of executive stock ownership plans coincide with decreased incentives to meet or just beat analysts' near-term EPS forecasts. Firms often assert that ownership plans focus executives on long-term performance. I find that the impact of these adoptions on meeting or just beating analysts' EPS forecasts differs depending on whether the plan binds the CEO to reach ownership targets by a specified date. In particular, I find that firms that adopt plans requ...
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作者：Allee, Kristian D.; Wangerin, Daniel D.
作者单位：University of Arkansas System; University of Arkansas Fayetteville; University of Wisconsin System; University of Wisconsin Madison
摘要：We study how monitoring and verification of accounting-based performance benchmarks influences the design and efficiency of earnout contracts. Earnouts are commonly used to resolve agency conflicts arising in mergers and acquisitions, but these contracts create measurement and other agency problems when contingent payments are tied to future accounting-based performance. Exploiting changes in auditor monitoring of earnouts that arose as\ a consequence of SFAS 141(R), we find that acquisition c...
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作者：Li, Jing; Nan, Lin; Zhao, Ran
作者单位：University of Hong Kong; Purdue University System; Purdue University; Chapman University System; Chapman University
摘要：We examine the corporate governance roles of information quality and the takeover market with asymmetric information regarding the value of the target firm. Increasing information quality improves the takeover efficiency however, a highly efficient takeover market also discourages the manager from exerting effort. We find that perfect information quality is not optimal for either current shareholders' expected payoff maximization or expected firm value maximization. Furthermore, current shareh...
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作者：Lobo, Gerald J.; Neel, Michael; Rhodes, Adrienne
作者单位：University of Houston System; University of Houston; Texas A&M University System; Texas A&M University College Station; Mays Business School
摘要：We investigate whether accounting comparability is associated with the likelihood that CEO compensation is tied to relative accounting performance (e.g., return on assets). We predict that higher accounting comparability increases the risk-sharing benefit of accounting-based RPE because peer firm performance better controls for common risk in RPE firm performance. Thus, firms that have higher accounting comparability with potential performance peers will be more likely to include accounting-ba...
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作者：Tang, Michael; Zhang, Li
作者单位：New York University; Rutgers University System; Rutgers University Newark; Rutgers University New Brunswick
摘要：Range forecasts have emerged as the predominant form of management forecasts, but prior research has overlooked the information conveyed by forecast ranges. This study fills this void by examining the information content of the extent to which managers' forecast ranges overlap with the range of individual analysts' pre-existing estimates (i.e., overlap). We expect managers to signal their superior private information by issuing low-overlap forecasts. We predict and find that, compared with hig...
