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作者：Kim, Yongtae; Park, Myung Seok
作者单位：Santa Clara University; Virginia Commonwealth University; Sungkyunkwan University (SKKU)
摘要：In this study, we examine the effect of clients' real activities manipulation (RAM) on auditors' client-retention decisions. We find that, with the exception of RAM through overproduction, clients' opportunistic operating decisions are positively associated with the likelihood of auditor resignations. We also provide evidence that auditors are especially sensitive to clients' RAM to just meet or beat earnings benchmarks in their client-retention decisions. In addition, we find that clients who...
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作者：Bonner, Sarah E.; Clor-Proell, Shana M.; Koonce, Lisa
作者单位：University of Southern California; Texas Christian University; University of Texas System; University of Texas Austin
摘要：Current financial reporting guidance allows managers flexibility as to whether to disaggregate income statement items. Such flexibility is problematic if managers prefer to aggregate in some situations and disaggregate in others because we conjecture that investors' evaluations of firms will predictably differ depending on whether performance information is shown in an aggregated or disaggregated fashion. We conduct a series of related experiments within the context of compound financial instr...
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作者：Hong, Hyun A.; Hung, Mingyi; Lobo, Gerald J.
作者单位：University of California System; University of California Riverside; Hong Kong University of Science & Technology; University of Southern California; University of Houston System; University of Houston
摘要：This study examines the impact of mandatory IFRS adoption on IPO underpricing and the relative amount of IPO capital raised in foreign markets. Using a difference-in-differences design, we find a decrease in IPO underpricing and an increase in the relative proceeds from foreign markets following mandatory IFRS adoption. We also find that mandatory IFRS adoption has a greater impact on IPO underpricing and relative foreign proceeds for firms in countries with a larger number of accounting chang...
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作者：Yu, Gwen; Wahid, Aida Sijamic
作者单位：Harvard University; University of Toronto
摘要：Do differences in countries' accounting standards affect global investment decisions? We explore this question by examining how accounting distance, the difference in the accounting standards used in the investor's and the investee's countries, affects the asset allocation decisions of global mutual funds. We find that investors tend to underweight investees with greater accounting distance. Using the mandatory adoption of International Financial Reporting Standards (IFRS) as an event that cha...
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作者：Indjejikian, Raffi J.; Matejka, Michal; Merchant, Kenneth A.; Van der Stede, Wim A.
作者单位：University of Michigan System; University of Michigan; Arizona State University; Arizona State University-Tempe; University of Southern California; University of London; London School Economics & Political Science
摘要：We examine the extent to which firms use past performance as a basis for setting earnings targets in their bonus plans and assess the implications of such targets for managerial incentives. We find that high-profitability firms commonly decrease earnings targets when their managers fail to meet prior-year targets but rarely increase targets. Conversely, we find that low-profitability firms commonly increase earnings targets when their managers meet or exceed prior-year targets but rarely decre...
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作者：Blankespoor, Elizabeth; Miller, Gregory S.; White, Hal D.
作者单位：Stanford University; University of Michigan System; University of Michigan
摘要：Firm disclosures often reach only a portion of investors, which results in information asymmetry among investors and, therefore, lower market liquidity. This issue is particularly salient for firms that are not highly visible, as they tend not to receive broad news dissemination via traditional intermediaries, such as the press. This paper examines whether firms can reduce information asymmetry by more broadly disseminating their news. To isolate the impact of dissemination, we focus our analy...
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作者：Bruynseels, Liesbeth; Cardinaels, Eddy
作者单位：KU Leuven; Tilburg University
摘要：To ensure that audit committees provide sufficient oversight over the auditing process and quality of financial reporting, legislators have imposed stricter requirements on the independence of audit committee members. Although many audit committees appear to be fully'' independent, anecdotal evidence suggests that CEOs often appoint directors from their social networks. Based on a 2004 to 2008 sample of U.S.-listed companies after the Sarbanes-Oxley Act, we find that these social ties have a n...
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作者：Arya, Anil; Mittendorf, Brian G.
作者单位：University System of Ohio; Ohio State University
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作者：Zeff, Stephen A.
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作者：Balsam, Steven; Harris, Erica E.
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University; Rutgers University System; Rutgers University New Brunswick; Rutgers University Camden
摘要：In this paper we show that supporters reduce donations to nonprofits subsequent to disclosure of high executive compensation. We find evidence consistent with large, sophisticated donors actively seeking out and reacting to compensation information made available in IRS Form 990, while smaller donors react to compensation disclosures in the media. Additional analysis indicates that these results vary systematically across nonprofits, as we find a stronger negative relation in nonprofits classi...
