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作者：Rice, Sarah C.; Weber, David P.; Wu, Biyu
作者单位：Texas A&M University System; Texas A&M University College Station; University of Connecticut
摘要：We examine various penalties that could serve as enforcement mechanisms for Sarbanes-Oxley (SOX) Section 404. We focus on firms with restatements, some of which had previously reported their control weaknesses as required and some of which acknowledged them only after announcing their restatement. We find no evidence that penalties are more likely for firms, managers, or auditors that fail to report existing control weaknesses. Instead, class action lawsuits, management turnover, and auditor t...
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作者：Boritz, J. Efrim; Kochetova-Kozloski, Natalia; Robinson, Linda
作者单位：University of Waterloo; Saint Marys University - Canada
摘要：Previous studies indicate that auditors are able to identify fraud risk factors, but may not be able to translate this knowledge into an audit plan that effectively takes these factors into account to increase the likelihood of detecting fraud. Fraud specialists may be able to compensate for such limitations. This study investigates the relative merits of involving fraud specialists in assisting auditors by developing an audit plan that would effectively address fraud risk in a revenue cycle. ...
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作者：Harris, Erica; Petrovits, Christine M.; Yetman, Michelle H.
作者单位：Rutgers University System; Rutgers University New Brunswick; Rutgers University Camden; William & Mary; University of California System; University of California Davis
摘要：We examine whether donors reward nonprofit organizations that report better governance. From a sample of 10,846 organizations from 2008 to 2010, we first identify seven nonprofit governance dimensions using factor analysis. We then test whether the quality of governance influences donor decisions by including the seven governance factors in the standard donor's demand model. We find consistent evidence that donations and government grants are positively associated with six of the seven factors...
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作者：Tian, Xiaoli (Shaolee)
作者单位：University System of Ohio; Ohio State University
摘要：The SEC is moving toward requiring real-time reporting. Proponents have predicted that disclosing a news event immediately after it arises could reduce information aggregation and disclosure bunching. But evidence from the theoretical literature suggests that the effect depends on whether managers can time the underlying required reporting event. Managers, for example, can time regular poison pill adoptions, but have limited ability to time in-play pill adoptions. Thus, I test whether real-tim...
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作者：Sabac, Florin; Tian, Jie (Joyce)
作者单位：University of Alberta; University of Waterloo
摘要：We characterize the necessary and sufficient conditions for communication of private, unverifiable managerial information to be valuable for stewardship purposes. First, the hard, verifiable information must be able to confirm to some extent the truthfulness of the manager's soft, unverifiable report. Second, neither the hard, verifiable information nor the soft, unverifiable managerial report should be too informative for providing effort incentives because that makes it harder to motivate tr...
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作者：Kerr, Jon N.; Ozel, N. Bugra
作者单位：City University of New York (CUNY) System; Baruch College (CUNY); University of Texas System; University of Texas Dallas
摘要：We empirically examine the joint predictions of the pecking order theory and the theory of time-varying asymmetric information regarding the timing of security offerings around information disclosures. We analyze loan originations and bond offerings around earnings announcements and compare them against equity offerings. In support of the theories' predictions, we find a positive association between the information sensitivity of securities and the likelihood of their issuance after earnings a...
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作者：Srinivasan, Suraj; Wahid, Aida Sijamic; Yu, Gwen
作者单位：Harvard University; University of Toronto
摘要：We study the frequency of restatements by foreign firms listed on U.S. exchanges. We find that the restatement rate of U.S.-listed foreign firms is significantly lower than that of comparable U.S. firms and that the difference depends on the firm's home country characteristics. Foreign firms from countries with a weak rule of law are less likely to restate than are firms from strong rule of law countries. While the lower rate of restatements can represent an absence of errors, it can also indi...
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作者：Douthit, Jeremy D.; Stevens, Douglas E.
作者单位：University of Arizona; University System of Georgia; Georgia State University
摘要：Rankin, Schwartz, and Young (2008) find experimental evidence that manipulating whether the budget request of the subordinate requires a factual assertion has no effect on budgetary slack when the superior can reject the budget. This calls into question the role of honesty in participative budgeting settings. Using Rankin et al.'s (2008) manipulation to capture honesty effects, we examine the robustness of honesty effects on budget proposals when the superior has rejection authority in two exp...
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作者：Fanning, Kirsten; Agoglia, Christopher P.; Piercey, M. David
作者单位：University of Illinois System; University of Illinois Urbana-Champaign; University of Massachusetts System; University of Massachusetts Amherst
摘要：In recent years, regulators have considered several initiatives to lower the threshold for disclosing risks to investors. We examine two ways in which disclosing more risks can actually lower investors' perceptions of risk. Utilizing an experiment, we find evidence of two unintended consequences on different types of investors. First, we demonstrate that the addition of low-probability risks to a disclosure can dilute (rather than add to) more probable losses, leading certain investors to lowe...
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作者：Chen, Chih-Ying; Chen, Peter F.; Jin, Qinglu
作者单位：Singapore Management University; Hong Kong University of Science & Technology; Shanghai University of Finance & Economics
摘要：Prior studies show that equity value has convex relations with earnings and book value of equity, respectively, due to growth and adaptation options (Burgstahler and Dichev 1997a; Zhang 2000). However, these studies do not consider the role of institutions in affecting firms' ability to exercise growth and adaptation options. In this study, we investigate whether these convex relations vary with the degree of a country's economic freedom, which may influence the frictions and costs of exercisi...
