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作者：Acito, Andrew A.; Pittman, Jeffrey A.; Truelson, J. Mike
作者单位：Virginia Polytechnic Institute & State University; Memorial University Newfoundland; Mississippi State University
摘要：We examine the impact of auditors' reputation impairments on their private-client market share to explore how conducting low-quality audits affects auditors' broader client portfolios. Prior evidence implies that an audit office loses public-client market share after a client announces a restatement. However, auditors' private clients may be less concerned about auditor reputation and quality, given that they have lower agency costs and their financial statement users are often creditors that ...
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作者：Krupa, Trent J.; Mullaney, Michele S.
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; Indiana University System; Indiana University Bloomington; IU Kelley School of Business
摘要：We examine whether information processing constraints limit managers' ability to effectively integrate tax planning and core business strategies (i.e., effective tax planning). We propose that artificial intelligence (AI) tools, such as machine learning, can mitigate these constraints by providing enhanced predictive information for key business decisions (e.g., customer demand, supply chain), thereby reducing processing costs. Using a recently developed firm-year measure of investment in AI-r...
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作者：Chen, Yangyang; Lin, Shuping; Ng, Jeffrey; Pan, Yue
作者单位：City University of Hong Kong; Nankai University; University of Hong Kong; Xiamen University
摘要：This study examines whether the revolving-door phenomenon at financial intermediaries, specifically institutions sponsoring initial public offerings (IPOs), affects fraud allegations against their IPO clients in the Chinese market. We find that when sponsor institutions employ former China Securities Regulatory Commission (CSRC) regulators as board members or top managers, the CSRC is less likely to allege fraud against their clients. Evidence shows that this effect is caused more by a reduced...
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作者：McClure, Charles G.; Shi, Shawn X.; Watts, Edward M.
作者单位：University of Chicago; University of Washington; University of Washington Seattle; Yale University
摘要：We study how global changes in information acquisition costs through disclosure technologies affect price informativeness. To explore this issue, we examine worldwide adoptions of centralized electronic disclosure systems, which significantly reduce the cost of and broaden access to financial disclosures. Consistent with theory, we show a significant reduction in private information acquisition around earnings announcements as a result of these adoptions. These effects are most pronounced in c...
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作者：Colas, Baptiste; Brousseau, Carl
作者单位：Universidad Carlos III de Madrid; Laval University
摘要：We exploit differences in two industry classification schemes to distinguish between industry classification misfits and industry core firms. We posit that misfits differ from their industry peers, and we document consequences of this heterogeneity. Misfits have larger absolute abnormal accruals, firms in industries with a greater proportion of misfits have larger absolute abnormal accruals, and contemporaneous abnormal accruals are associated with future restatements for industry core firms b...
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作者：Altamuro, Jennifer; Chen, Lucy Huajing; Li, Yiwen
作者单位：Villanova University
摘要：This study examines whether the revised lease standards (ASC 842 and IFRS 16) make U.S. GAAP-based accounting amounts more comparable with IFRS-based accounting amounts. Our study is motivated by the FASB and the IASB's call for research on the comparability of the revised lease standards. We find that U.S. GAAP and IFRS pairs that are high operating lease users experience a larger increase in accounting comparability after the adoption of revised lease standards than low operating lease U.S. ...
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作者：Lei, Zicheng; Petmezas, Dimitris; Rau, P. Raghavendra; Yang, Chen
作者单位：University of London; King's College London; Durham University; University of Cambridge; University of Glasgow
摘要：We examine the association between CEO birthplace proximity and financial misconduct. We find that CEOs managing firms near their birthplaces (home CEOs) are associated with less financial misconduct compared to other CEOs. This association is not attributable to differences in corporate governance. The relationship strengthens in areas with a strong local investment presence and greater religious commitment as well as among CEOs with longer tenures in their home state. Our findings are robust...
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作者：Dutta, Sunil; Fan, Qintao
作者单位：University of California System; University of California Berkeley; University of Oregon
摘要：This paper investigates how competition for scarce corporate resources impacts innovation incentives within multidivisional firms and, consequently, shapes firms' preferences for fostering or restricting intra-firm competition. In our model, divisions become privately informed about the potential value of new investment opportunities generated through their innovation initiatives. We demonstrate that intra-firm competition unambiguously reduces divisions' ex ante innovation incentives. However...
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作者：Ben-Rephael, Azi; Ronen, Joshua; Ronen, Tavy; Zhou, Mi
作者单位：Rutgers University System; Rutgers University New Brunswick; Rutgers University Newark; New York University; Virginia Commonwealth University
摘要：We consider how images (i.e., photos but not graphs, charts, or infographics) in annual reports provide users with information and use machine-learning algorithms to assess their informativeness. We develop a metric of content reinforcement, defined as the degree to which information investors extract from images complements and reinforces details in textual narratives. We find that firms are more likely to use images when they experience greater asset growth, have greater business complexity,...
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作者：Pan, Jing; Sul, Edward; Wang, Sean
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; George Washington University; Southern Methodist University
摘要：Analyzing a panel of earnings announcers from 1998-2022, we document that the aggregate market return on quarterly earnings announcement dates is positively associated with the announcing firm's subsequent three-day abnormal returns. This phenomenon is strongest for firms with extreme earnings surprises and dissipates by day seven, indicating a short-lived delay in incorporating the aggregate news. We also document a sluggish return response to same-day macro news disclosures, especially when ...
