Review of Accounting Studies

最新文章

• Valuation of loss firms in a knowledge-based economy AI翻译
  作者：Darrough, Masako; Ye, Jianming
  作者单位：City University of New York (CUNY) System; Baruch College (CUNY)
  摘要：Recent research in accounting has documented a substantial increase in the number of loss firms. Existing theories on the valuation of loss firms are based on adaptation/abandonment options or limited liability, assuming that these firms are operationally distressed. In this paper, we show that many loss firms do not fit this stereotype and identify the primary value drivers of this new type of loss firms. Our analysis helps resolve the puzzling negative relation between earnings and market va...
• An alternative interpretation of the discontinuity in earnings distributions AI翻译
  作者：Beaver, William H.; McNichols, Maureen F.; Nelson, Karen K.
  作者单位：Stanford University; Rice University
  摘要：We show that the asymmetric effects of income taxes and special items for profit and loss firms contribute to a discontinuity at zero in the distribution of earnings. Income taxes draw profit observations towards zero while negative special items pull loss observations away from zero. These earnings components are thus expected to contribute to a discontinuity even in the absence of discretion. We show our results are not an artifact of deflation and that other common components of earnings do...
• Underwriter choice and earnings management: evidence from seasoned equity offerings AI翻译
  作者：Jo, Hoje; Kim, Yongtae; Park, Myung Seok
  作者单位：Santa Clara University; Virginia Commonwealth University
  摘要：Using a sample of seasoned equity offerings (SEOs), this paper examines the association between the choice of financial intermediary and earnings management. We contend that with more stringent standards for certification and intense monitoring, highly prestigious underwriters restrict firms' incentives for earnings management to protect their reputation and to avoid potential litigation risks, while firms with greater incentives for earnings management avoid strict monitoring by choosing low-...
• Trading incentives to meet the analyst forecast AI翻译
  作者：McVay, Sarah; Nagar, Venky; Tang, Vicki Wei
  作者单位：New York University; University of Michigan System; University of Michigan; Georgetown University
  摘要：We examine stock sales as a managerial incentive to help explain the discontinuity around the analyst forecast benchmark. We find that the likelihood of just meeting versus just missing the analyst forecast is strongly associated with subsequent managerial stock sales. Moreover, we provide evidence that managers manage earnings prior to just meeting the threshold and selling their shares. Finally, the relation between just meeting and subsequently selling shares does not hold for non-manager i...
• Organized labor and information asymmetry in the financial markets AI翻译
  作者：Hilary, Gilles
  作者单位：Hong Kong University of Science & Technology
  摘要：Prior results from the labor relations literature suggest that revealing information weakens management's position in collective bargaining. Thus, when facing organized labor, management has an incentive to preserve the information asymmetry with outsiders. This study uses a sample from a large cross-section of the economy over several years to test this relation. Results are consistent with this prediction. Strong organized labor is associated with higher bid-ask spreads, higher probability o...
• The persistence of earnings and cash flows and the role of special items: Implications for the accrual anomaly AI翻译
  作者：Dechow, Patricia M.; Ge, Weili
  作者单位：University of Michigan System; University of Michigan
  摘要：We argue that high accruals are likely to be the outcome of rules with an income statement perspective, while low accruals are likely to be the outcome of rules with a balance sheet perspective, and that this has implications for the properties of earnings. Specifically, earnings persistence is affected both by the magnitude and sign of the accruals. Accruals improve the persistence of earnings relative to cash flows in high accrual firms, but reduce earnings persistence in low accrual firms. ...
• Which approach to accounting for employee stock options best reflects market pricing? AI翻译
  作者：Landsman, Wayne R.; Peasnell, Ken V.; Pope, Peter F.; Yeh, Shu
  作者单位：University of North Carolina; University of North Carolina Chapel Hill; Lancaster University; National Taiwan University
  摘要：We use a residual income valuation framework to compare equity valuation implications of four approaches to employee stock options (ESOs) accounting: APB 25 recognize nothing, SFAS 123 (revised) recognize ESO expense, FASB Exposure Draft recognize and expense ESO asset and recognize ESO asset and liability. Theoretical analysis shows only grant date recognition of an asset and liability, and subsequent marking-to-market of the liability, results in accounting numbers that capture the dilution ...
• Discussion of Feedback loops, fair value accounting and correlated investments AI翻译
  作者：Koonce, Lisa
  作者单位：University of Texas System; University of Texas Austin
  摘要：My paper discusses Bloomfield, Nelson, and Smith's (BNS) model and experimental study of the price dynamics that arise when a firm's accounting reports are predictable from its stock returns. This phenomenon occurs when the firm takes a position in an asset that generates unrealized gains and losses (UGL's) that are correlated with the firm's own returns. My discussion of BNS focuses on three features that are often used to evaluate research-namely, potential for falsification, internal validi...
• Do firms understate stock option-based compensation expense disclosed under SFAS 123? AI翻译
  作者：Aboody, David; Barth, Mary E.; Kasznik, Ron
  作者单位：University of California System; University of California Los Angeles; Stanford University
  摘要：Focusing on the four key option pricing model inputs-expected option life, expected stock price volatility, expected dividend yield, and the risk-free interest rate for the expected life of the option-this study finds that firms understate option value estimates and, thus, stock-based compensation expense disclosed under SFAS 123. As predicted based on incentives and opportunities for management to understate SFAS 123 expense, the understatement of option value estimates is increasing in proxi...
• Disclosure of fees paid to auditors and the market valuation of earnings surprises AI翻译
  作者：Francis, Jere R.; Ke, Bin
  作者单位：University of Missouri System; University of Missouri Columbia; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
  摘要：We investigate if the SEC's recently mandated disclosure of fees for audit and nonaudit services paid by firms to their incumbent auditors affected the market's perception of auditor independence and earnings quality. Following the initial fee disclosures in 2001, we find that the market valuation of quarterly earnings surprises (earnings response coefficient) was significantly lower for firms with high levels of nonaudit fees than for firms with low levels of such fees. In contrast, in the ye...