Review of Accounting Studies

最新文章

• Accrual quality, skill, and the cross-section of mutual fund returns AI翻译
  作者：Nallareddy, Suresh; Ogneva, Maria
  作者单位：Duke University; University of Southern California
  摘要：We use returns of actively managed mutual funds to document the link between accrual quality (AQ) and systematic (priced) risk. Despite compelling theoretical arguments, prior research finds no evidence that poor AQ commands a risk premium in the cross-section of realized stock returns. We argue that the previously obtained premium estimates are biased downward because, for a large portion of poor AQ stocks, higher expected returns are offset by the news of deteriorating fundamentals. We sugge...
• Balancing difficulty of performance targets: theory and evidence AI翻译
  作者：Matejka, Michal; Ray, Korok
  作者单位：Arizona State University; Arizona State University-Tempe; Texas A&M University System; Texas A&M University College Station; Mays Business School
  摘要：We examine how firms balance difficulty of performance targets in their annual bonus plans. We present an analytical model showing that managerial allocation of effort is a function of not only relative incentive weights but also the difficulty of performance targets. We find that relative incentive weights and target difficulty can either be complements or substitutes in motivating effort depending on the extent to which managers have alternative employment opportunities. To test the predicti...
• Book-tax conformity and capital structure AI翻译
  作者：Blaylock, Bradley; Gaertner, Fabio B.; Shevlin, Terry
  作者单位：University of Oklahoma System; University of Oklahoma - Norman; University of Wisconsin System; University of Wisconsin Madison; University of California System; University of California Irvine
  摘要：We examine the effect of increased book-tax conformity on corporate capital structure. Prior studies document a decrease in the informativeness of accounting earnings for equity markets resulting from higher book-tax conformity. We argue that the decrease in earnings informativeness impacts equity holders more than debt holders because of the differences in payoff structures between debt and equity investments such that increases in book-tax conformity lead to increases in firms' reliance on d...
• Flexibility in cash-flow classification under IFRS: determinants and consequences AI翻译
  作者：Gordon, Elizabeth A.; Henry, Elaine; Jorgensen, Bjorn N.; Linthicum, Cheryl L.
  作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University; Stevens Institute of Technology; University of London; London School Economics & Political Science; University of Texas System; University of Texas at San Antonio
  摘要：International Financial Reporting Standards (IFRS) allow managers flexibility in classifying interest paid, interest received, and dividends received within operating, investing, or financing activities within the statement of cash flows. In contrast, U.S. Generally Accepted Accounting Principles (GAAP) requires these items to be classified as operating cash flows (OCF). Studying IFRS-reporting firms in 13 European countries, we document firms' cash-flow classification choices vary, with about...
• Does the cessation of quarterly earnings guidance reduce investors' short-termism? AI翻译
  作者：Kim, Yongtae; Su, Lixin (Nancy); Zhu, Xindong (Kevin)
  作者单位：Santa Clara University; Lingnan University; City University of Hong Kong
  摘要：The practice of providing quarterly earnings guidance has been criticized for encouraging investors to fixate on short-term earnings and encouraging managerial myopia. Using data from the post-Regulation Fair Disclosure period, we examine whether the cessation of quarterly earnings guidance reduces short-termism among investors. We show that, after guidance cessation, investors in firms that stop quarterly guidance are composed of a larger (smaller) proportion of long-term (short-term) institu...
• Compensation design and political risk: the case of city managers AI翻译
  作者：Compton, Ying L.; Gore, Angela K.; Kulp, Susan L.
  作者单位：U.S. Securities & Exchange Commission (SEC); George Washington University
  摘要：Although theory suggests its importance, empirical evidence on the relation between exogenous termination risk and contracted compensation packages is limited. This study takes a different approach by exploring determinants of contracted annual compensation and severance packages for city managers. Results indicate that managers exposed to greater exogenous political risk- i.e., those employed by municipalities where voters are more likely to recall elected officials-are 6 %-11 % more likely t...
• Audit firms face downward-sloping demand curves and the audit market is far from perfectly competitive AI翻译
  作者：Gerakos, Joseph; Syverson, Chad
  作者单位：Dartmouth College; University of Chicago; National Bureau of Economic Research
  摘要：We discuss the discrete choice demand estimation methods applied by Guo et al. (2017) in the audit setting. We then review insights into audit market competition that demand estimation has already provided. We conclude that the audit market is far from perfectly competitive.
• The sharpest tool in the shed: IPO financial statement management of STEM vs. non-STEM firms AI翻译
  作者：Fedyk, Tatiana; Singer, Zvi; Soliman, Mark
  作者单位：University of San Francisco; Universite de Montreal; HEC Montreal; University of Southern California
  摘要：The valuation of STEM (science, technology, engineering, and math) firms has recently gained attention in the literature. Research has shown that, for valuation of STEM firms, accounting items such as sales growth and R&D expenditures matter more than bottom-line earnings. We examine whether, around the time of the IPO, STEM managers apply discretion over the accounting items most weighted by investors for their valuation. We find that investors tend to weigh sales growth and R&D more heavily ...
• Has goodwill accounting gone bad? AI翻译
  作者：Li, Kevin K.; Sloan, Richard G.
  作者单位：University of California System; University of California Riverside; University of California System; University of California Berkeley
  摘要：Prior to SFAS 142, goodwill was subject to periodic amortization and a recoverability-based impairment test. SFAS 142 eliminates periodic amortization and imposes a fair-value-based impairment test. We examine the impact of this standard on the accounting for and valuation of goodwill. Our results indicate that the new standard has resulted in relatively inflated goodwill balances and untimely impairments. We also find that investors do not appear to fully anticipate the untimely nature of pos...
• Risk-based forecasting and planning and management earnings forecasts AI翻译
  作者：Ittner, Christopher D.; Michels, Jeremy
  作者单位：University of Pennsylvania
  摘要：This study examines the association between a firm's internal information environment and the accuracy of its externally disclosed management earnings forecasts. Internally, firms use forecasts to plan for uncertain futures. The risk management literature argues that integrating risk-related information into forecasts and plans can improve a firm's ability to forecast financial outcomes. We investigate whether this internal information manifests itself in the accuracy of external earnings guid...