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作者：Choi, Jongmoo Jay; Mao, Connie X.; Upadhyay, Arun D.
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University; Nevada System of Higher Education (NSHE); University of Nevada Reno
摘要：Barton (2001) and Pincus and Rajgopal (2002) show that earnings management through discretionary accruals and derivative hedging are partial substitutes in smoothing earnings before 1999. In this study, we investigate whether Financial Accounting Standard (FAS) 133 regarding hedge accounting in 2000 has influenced the relative merit of the two earnings-smoothing methods. Based on a sample of S& P 500 nonfinancial firms during 1996-2006, we find that the substitution relation between derivative...
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作者：Lo, Alvis K.
作者单位：Boston College
摘要：This study examines the relationship between accounting credibility and firms' ability to fund their investments. Theory suggests that credible reporting resulting from external audits enables firms to attract external funds needed for their investments. The tests exploit monetary policy tightening that creates a liquidity shortage for banks, which, in turn, either requires banks to raise additional funds to restore liquidity or forces them to restrict their investments in the form of lending....
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作者：Arnold, Markus C.
作者单位：University of Bern
摘要：In a world characterized by increasing pressure from financial and product markets, the question of how exogenous constraints affect internal coordination and control processes has become increasingly important. This experiment investigates how two exogenous constraints that superiors can face in budget negotiation settings, increased opportunity costs and financial pressure to meet unit targets, affect budget negotiations and subordinate effort. The results show that both constraints induce m...
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作者：Chen, Xia; Cheng, Qiang; Lo, Alvis K.; Wang, Xin
作者单位：Singapore Management University; Boston College; University of Hong Kong
摘要：How to address managerial short-termism is an important issue for companies, regulators, and researchers. We examine the effect of CEO contractual protection, in the form of employment agreements and severance pay agreements, on managerial short-termism. We find that firms with CEO contractual protection are less likely to cut R&D expenditures to avoid earnings decreases and are less likely to engage in real earnings management. The effect of CEO contractual protection is both statistically an...
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作者：Evans, Mark E.; Houston, Richard W.; Peters, Michael F.; Pratt, Jamie H.
作者单位：Wake Forest University; University of Alabama System; University of Alabama Tuscaloosa; Villanova University; Indiana University System; Indiana University Bloomington
摘要：Based on data collected from 616 experienced financial officers who use U.S. GAAP or IFRS and are domiciled in the U.S., Europe, or Asia, we examine how reporting standards (U.S. GAAP versus IFRS) and domicile (U.S. versus non-U.S.) affect earnings management (real versus accrual). U.S. firms using U.S. GAAP rely more heavily on real methods than non-U.S. firms that use either IFRS or U.S. GAAP and U.S. firms using IFRS. U.S. firms using U.S. GAAP operate in an environment that encourages real...
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作者：Plumlee, R. David; Rixom, Brett A.; Rosman, Andrew J.
作者单位：Utah System of Higher Education; University of Utah; State University System of Florida; Florida International University; Fairleigh Dickinson University
摘要：Although lower-level auditors increasingly carry out mandatory analytical procedures (APs) in audits, they do not perform as well as partners and managers. In order to improve performance in APs by lower-level auditors, we investigated tasks requiring creativity, where training in metacognition consciously thinking about one's thought process improves task performance. As a result, we train lower-level auditors to use a sequential thought process comprised of two metacognitive skills: divergen...
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作者：Lennox, Clive S.; Wu, Xi; Zhang, Tianyu
作者单位：Nanyang Technological University; Central University of Finance & Economics; Chinese University of Hong Kong
摘要：Opponents of mandatory rotation argue that a change of partner is bad for audit quality, as it results in a loss of client-specific knowledge. On the other hand, proponents argue that a change of partner is beneficial, as it results in a positive peer review effect and a fresh perspective on the audit. We test the impact of mandatory partner rotation on audit quality using a unique dataset of audit adjustments in China. Our results suggest that mandatory rotation of engagement partners results...
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作者：Walker, Martin
作者单位：University of Manchester
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作者：Ball, Ray; Brown, Philip R.
作者单位：University of Chicago; University of New South Wales Sydney; University of Western Australia
摘要：This essay provides a retrospective view on our co-authored paper, Ball and Brown (1968). The retrospective was commissioned by Gregory B. Waymire, then President of the American Accounting Association. It describes how we both came to be Ph.D. students at The University of Chicago and set about researching the relation between earnings and share prices. It outlines the background against which we conducted the research, including the largely a priori accounting research literature at the time...
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作者：Cannon, James N.
作者单位：Iowa State University
摘要：This paper examines determinants of sticky cost behavior, costs that increase faster than they decrease as demand fluctuates. The majority of the literature infers that sticky costs arise because managers retain idle capacity as demand falls, but add capacity as demand grows. I use United States Air Transportation industry data to confirm that managers do retain idle capacity when demand falls. However, I also find that sticky costs arise because managers lower selling prices to utilize existi...
