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作者：Dong, Bei; Li, Edward Xuejun; Ramesh, K.; Shen, Min
作者单位：State University System of Florida; University of South Florida; City University of New York (CUNY) System; Baruch College (CUNY); Rice University
摘要：This study examines the unintended effects of a pre-Reg FD practice that gave a broad group of sophisticated market participants 15-minute earlier access to all corporate press releases than the general public. We find that roughly one-eighth of the price discovery to earnings announcements issued during regular trading hours was due to privileged access to information in earnings press releases, with the 15-minute priority dissemination contributing to just over 50 percent of price discovery ...
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作者：Swanquist, Quinn T.; Whited, Robert L.
作者单位：University System of Georgia; Georgia State University; University of Massachusetts System; University of Massachusetts Amherst
摘要：This study investigates whether the market for audit clients penalizes auditors following association with low-quality audits. Specifically, we examine whether audit offices experience a loss in local market share following client restatements. We document that the frequency of restatement announcements within an office-year (contamination'') is inversely related to subsequent year-over-year change in local market share. Further analysis indicates that restatements impair the office's ability ...
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作者：Chen, Ting; Martin, Xiumin; Mashruwala, Christina A.; Mashruwala, Shamin D.
作者单位：City University of New York (CUNY) System; Baruch College (CUNY); Washington University (WUSTL); University of Alberta
摘要：We investigate whether multiemployer defined-benefit pension plan (MEPP) underfunding is priced by shareholders and creditors. Prior to the FASB's new MEPP standard (effective December 2011), when the disclosures on such plans were sparse, we find evidence (some evidence) that our estimate of a firm's share of MEPP underfunding is credit (value) relevant. We also find some evidence that a proxy for the funded status of a firm's MEPPs is incrementally value relevant over and above the firm's ca...
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作者：Bowlin, Kendall O.; Hobson, Jessen L.; Piercey, M. David
作者单位：University of Mississippi; University of Illinois System; University of Illinois Urbana-Champaign; University of Massachusetts System; University of Massachusetts Amherst
摘要：We examine whether the effect of mandatory auditor rotation on audit quality depends on the mental frame auditors adopt in evaluating management representations. In practice, auditors can alternately frame their assessments of management representations in terms of their potential dishonesty (what we term skepticism) or potential honesty. Using psychology theory and a laboratory experiment, we predict and find that mandatory rotation improves audit quality when an auditor takes an honesty fram...
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作者：Lee, Charles M. C.; Li, Kevin K.; Zhang, Ran
作者单位：Stanford University; University of Toronto; Peking University
摘要：We examine the financial health and performance of reverse mergers (RMs) that became active on U.S. stock markets between 2001 and 2010, particularly those from China (around 85 percent of all foreign RMs). As a group, RMs are early-stage companies that typically trade over the counter. However, Chinese RMs (CRMs) tend to be more mature and less speculative than either their U.S. counterparts or a group of exchange-industry-size-matched firms. As a group, CRMs outperformed their matched peers ...
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作者：Donovan, John; Frankel, Richard M.; Martin, Xiumin
作者单位：Washington University (WUSTL)
摘要：We examine the relation between accounting conservatism and creditor recovery rates for firms in default. We also test the link between conservatism and the length of bankruptcy resolutions. We find that creditors of firms with more conservative accounting before default have significantly higher recovery rates, and that this positive relation is more pronounced for default firms that violated covenants before the default. We also find that conservative firms have higher asset productivity, sh...
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作者：Pyzoha, Jonathan S.
作者单位：University System of Ohio; Miami University
摘要：Prior archival studies find that firms that voluntarily adopted clawback policies have experienced a reduction in restatements. I experimentally examine this outcome by investigating the influence of two key factors (i.e., executive compensation structure and auditor quality) on financial reporting executives' (hereafter, executives'') decision-making regarding a proposed restatement that will lead to a clawback of their incentives. I find that executives (i.e., CFOs, controllers, and treasure...
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作者：Brisley, Neil; Douglas, Alan V.
作者单位：University of Waterloo
摘要：When future operations are expected to provide information rents, managers concerned with being replaced can entrench themselves with value-increasing firm-specific human capital (SHC). In motivating SHC investment, the firm trades off the incentive effects of an ex ante commitment to asymmetric information against the costs of compensation rents and private benefits. Firm value, therefore, is affected by (1) the accuracy with which the board observes and interprets information, and (2) the st...
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作者：Zhang, X. Frank
作者单位：Yale University
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作者：Dhole, Sandip; Khumawala, Saleha B.; Mishra, Sagarika; Ranasinghe, Tharindra
作者单位：University of Melbourne; University of Houston System; University of Houston; Deakin University; Singapore Management University
摘要：This study examines the impact of the California Nonprofit Integrity Act of 2004 on CEO compensation costs in affected organizations. Contrary to the stated objective of the Act that executive compensation is just and reasonable, we find that CEO compensation costs for affected nonprofits during the post-regulation periods have increased by about 6.3 percent when compared with a control group of comparable unaffected nonprofits. In addition, the relative increase in CEO compensation appears to...
