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作者：Abernethy, Margaret A.; Kuang, Yu Flora; Qin, Bo
作者单位：University of Melbourne
摘要：We investigate whether CEO power influences a firm's decision to change its compensation system in response to regulatory and public pressure. In particular, we assess whether CEO power influences the choice of performance measures as a form of camouflage to minimize the impact of these reforms on their wealth. We examine one component of CEO pay, namely, the use of performance-vested stock option (PVSO) plans, and find that firms with powerful CEOs attach less challenging targets in the initi...
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作者：Libby, Robert; Tan, Hun-Tong; Hunton, James E.
作者单位：Cornell University; Nanyang Technological University; Bentley University; Maastricht University
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作者：Feng, Mei; Li, Chan; McVay, Sarah E.; Skaife, Hollis
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh; University of Washington; University of Washington Seattle; University of California System; University of California Davis
摘要：We investigate whether ineffective internal control over financial reporting has implications for firm operations by examining the association between inventory-related material weaknesses in internal control over financial reporting and firms' inventory management. We find that firms with inventory-related material weaknesses have systematically lower inventory turnover ratios and are more likely to report inventory impairments relative to firms with effective internal control over financial ...
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作者：Williams, Christopher D.
作者单位：University of Michigan System; University of Michigan
摘要：This study empirically examines the role of shocks to macro-uncertainty in shaping the responses of stock market participants to firm-specific earnings news. Specifically, I find that investors place greater weight on bad news following an increase in macro-uncertainty. By contrast, I find that investors place equal weight on both good and bad news following a decrease in macro-uncertainty. Furthermore, my findings show that these effects are more pronounced (1) for firms whose prior returns a...
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作者：Ke, Bin; Lennox, Clive S.; Xin, Qingquan
作者单位：Nanyang Technological University; Chongqing University
摘要：This study examines whether China's weak institutional environment results in lower-quality audits by the Big 4 firms. We find that the Big 4 assign their less experienced partners to companies that are listed only in China compared with clients cross-listed in Hong Kong. The Big 4 are less likely to issue modified audit reports, and they charge lower audit fees for clients that are listed only in China. Finally, companies listed only in China have larger signed abnormal accruals than do compa...
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作者：Chen, Yangyang; Gul, Ferdinand A.; Veeraraghavan, Madhu; Zolotoy, Leon
作者单位：Hong Kong Polytechnic University; Monash University; University of Melbourne
摘要：Using a large sample of U.S. firms spanning the period 2000-2010, we document a strong positive association between the sensitivity of CEO compensation portfolio to stock return volatility (vega) and audit fees. We also show that the positive association between vega and audit fees is weaker in the post-Sarbanes-Oxley Act (SOX) period. In supplementary tests, we show that the relation between vega and audit fees is stronger for firms with older CEOs and in firms where the CEO is also chairman ...
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作者：Luo, Shuqing; Nagarajan, Nandu J.
作者单位：National University of Singapore; University of Texas System; University of Texas Arlington
摘要：This study examines the antecedents and consequences of analysts choosing to become supply chain analysts (i.e., analysts following both a supplier and its major customer). We find that information complementarities between firms in the same supply chain, between a supplier firm and its industry peer firms, and between the supplier's major customer and other firms in analysts' portfolio affect their supply chain specialization decision. The potential revenues supplier firms generate for analys...
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作者：Corona, Carlos; Nan, Lin; Zhang, Gaoqing
作者单位：Carnegie Mellon University; Purdue University System; Purdue University; University of Minnesota System; University of Minnesota Twin Cities
摘要：We study the interaction between interbank competition and accounting information quality and their effects on banks' risk-taking behavior. We identify an endogenous false-alarm cost that banks incur when forced to sell assets to meet capital requirements. We find that when the interbank competition is less intense, an improvement in the quality of accounting information encourages banks to take more risk. Keeping the banks' investments in loans constant, the provision of high-quality accounti...
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作者：Bova, Francesco; Kolev, Kalin; Thomas, Jacob K.; Zhang, X. Frank
作者单位：University of Toronto; Yale University
摘要：Prior research documents a negative link between risk and executive holding of stock, but a corresponding positive link for options. We find a similar negative relation for non-executive holding of stock. Our finding is consistent with the view that non-executives not only face significant incentives to reduce risk when they hold stock, but they are also able to affect corporate risk. While endogeneity cannot be ruled out fully, the results of a battery of tests suggest that it plays a limited...
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作者：Jayaraman, Sudarshan; Milbourn, Todd
作者单位：Washington University (WUSTL)
摘要：Prior studies find inconsistent evidence regarding the effect of CEO equity incentives on financial misreporting. We argue that this inconsistency stems from not considering detection mechanisms that mitigate the effect of equity incentives on misreporting by limiting the ability of managers to carry out such manipulative activities. Using auditor industry expertise as one such detection mechanism, we document that CEO equity incentives are positively associated with misreporting only in subsa...
