-
作者：Graham, John R.; Hanlon, Michelle; Shevlin, Terry; Shroff, Nemit
作者单位：Duke University; Massachusetts Institute of Technology (MIT); University of California System; University of California Irvine
摘要：We analyze survey responses from nearly 600 corporate tax executives to investigate firms' incentives and disincentives for tax planning. While many researchers hypothesize that reputational concerns affect the degree to which managers engage in tax planning, this hypothesis is difficult to test with archival data. Our survey allows us to investigate reputational influences and, indeed, we find that reputational concerns are important-69 percent of executives rate reputation as important and t...
-
作者：Chi, Sabrina S.; Pincus, Morton; Teoh, Siew Hong
作者单位：University of Arkansas System; University of Arkansas Fayetteville; University of California System; University of California Irvine
摘要：We find evidence that investors misprice information contained in book-tax differences (BTDs), measured as the ratio of taxable income to book income, TI/BI. Low TI/BI predicts worse earnings growth and abnormal stock returns than high TI/BI. We find that short sellers and insiders arbitrage BTD mispricing, but the arbitrage is imperfect because of constraints on short selling and insider trading. Under SFAS No. 109 the predictability is stronger for TEMP/BI, the temporary component of TI/BI, ...
-
作者：Bowen, Robert M.; Rajgopal, Shivaram; Venkatachalam, Mohan
作者单位：University of Washington; University of Washington Seattle; University of San Diego; Emory University; Duke University
摘要：We examine (1) whether the accounting, governance, and investing practices of Berkshire Hathaway investees are consistent with Warren Buffett's public statements on what constitutes good accounting, governance, and investing practices and (2) whether these practices are associated with Berkshire's initial selection or Buffett's subsequent influence. Compared to control firms, we find that Berkshire investees are highly likely to follow Buffett's investment philosophy, somewhat likely to follow...
-
作者：Kirk, Marcus P.; Vincent, James D.
作者单位：State University System of Florida; University of Florida
摘要：This paper investigates the effect of investments in internal investor relations (IR) departments on firm outcomes. We find that companies initiating internal professional IR experience increases in disclosure, analyst following, institutional investor ownership, liquidity, and market valuation relative to a matched sample of control firms. We also examine the differential impact the exogenous shock of Regulation Fair Disclosure (Reg FD) had on firms with an established professional IR departm...
-
作者：Huang, Xuan; Teoh, Siew Hong; Zhang, Yinglei
作者单位：California State University System; California State University Long Beach; University of California System; University of California Irvine; Chinese University of Hong Kong
摘要：We investigate whether and when firms manage the tone of words in earnings press releases, and how investors react to tone management. We estimate abnormal positive tone, ABTONE, as a measure of tone management from residuals of a tone model that controls for firm quantitative fundamentals such as performance, risk, and complexity. We find that ABTONE predicts negative future earnings and cash flows, is positively associated with upward perception management events, such as, just meeting/beati...
-
作者：Merkley, Kenneth J.
作者单位：Cornell University
摘要：This paper examines how earnings performance relates to firms' narrative R&D disclosure decisions. The unique nature of R&D investments and financial statements' limited ability to communicate the value of such investments highlight the role of narrative disclosure as a supplement to the financial statements. I predict and find that current earnings performance (adjusted for R&D expense) is negatively related to the quantity of narrative R&D disclosure. Conducting a content analysis of the det...
-
作者：Cantrell, Brett W.; McInnis, John M.; Yust, Christopher G.
作者单位：University of Mississippi; University of Texas System; University of Texas Austin
摘要：Standard-setters and many investors argue that loan fair values provide more useful information about credit losses than historical cost information, while bankers and others generally disagree. We examine the ability of reported loan fair values to predict credit losses relative to the ability of net historical costs currently recognized under U.S. GAAP. Our analysis is important because credit losses in the banking sector can have severe and widespread economic effects, as the recent financi...
-
作者：Bartov, Eli; Mohanram, Partha S.
作者单位：New York University; University of Toronto
摘要：Does the placement of a line item in the income statement matter to investors? The passage of Statement of Financial Accounting Standards (SFAS) No. 145 (Financial Accounting Standards Board [FASB] 2002) affords a quasi-experimental setting to answer this question, because pre-SFAS No. 145, gains/losses from early debt extinguishments were reported below the line, while post-SFAS No. 145, they were reported above the line. After controlling for other identified changes that occur during our sa...
-
作者：Laux, Volker
作者单位：University of Texas System; University of Texas Austin
摘要：This paper studies the optimal design of long-term executive pay plans when boards of directors use accounting information for investment decision-making and executives can take costly actions to manipulate this information. The model predicts that a shift to more convex executive pay plans, such as equity plans that rely more on options and less on stock, is associated with higher levels of manipulation, lower reporting quality, and less efficient investment. When designing the optimal contra...
-
作者：Beck, Paul J.; Lisowsky, Petro
作者单位：University of Illinois System; University of Illinois Urbana-Champaign
摘要：This study examines the empirical relation between voluntary participation in the Internal Revenue Service's (IRS) Compliance Assurance Process (CAP) audit program, and tax uncertainty disclosed in financial statements pursuant to Financial Interpretation No. 48 (FIN 48). Based on the findings of prior analytical and empirical research, we formulate and test hypotheses about the likelihood of voluntary CAP participation and the resulting effect on FIN 48 tax reserves. We find that firms with m...
