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作者：Kilic, Emre; Lobo, Gerald J.; Ranasinghe, Tharindra; Sivaramakrishnan, K.
作者单位：University of Houston System; University of Houston; Singapore Management University; Rice University
摘要：We examine the impact of SFAS 133, Accounting for Derivative Instruments and Hedging Activities, on the reporting behavior of commercial banks and the informativeness of their financial statements. We argue that, because mandatory recognition of hedge ineffectiveness under SFAS 133 reduced banks' ability to smooth income through derivatives, banks that are more affected by SFAS 133 rely more on loan loss provisions to smooth income. We find evidence consistent with this argument. We also find ...
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作者：Blankespoor, Elizabeth; Linsmeier, Thomas J.; Petroni, Kathy R.; Shakespeare, Catherine
作者单位：Stanford University; Michigan State University; University of Michigan System; University of Michigan
摘要：Many have argued that financial statements created under an accounting model that measures financial instruments at fair value would not fairly represent a bank's business model. In this study we examine whether financial statements using fair values for financial instruments better describe banks' credit risk than less fair-value-based financial statements. Specifically, we assess the extent to which various leverage ratios, which are calculated using financial instruments measured along a fa...
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作者：Banker, Rajiv D.; Darrough, Masako N.; Huang, Rong; Plehn-Dujowich, Jose M.
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University; City University of New York (CUNY) System; Baruch College (CUNY)
摘要：This study focuses on the relation between current compensation and past performance measures as signals of a chief executive officer's (CEO's) ability. We develop a simple two-period principal-agent model with moral hazard and adverse selection and test theoretical predictions using CEO compensation data from 1993-2006. Consistent with the predictions, we find that salary (bonus) is positively (negatively) associated with past performance for both continuing and newly hired CEOs. We also find...
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作者：Wouters, Marc
作者单位：Helmholtz Association; Karlsruhe Institute of Technology
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作者：Webb, R. Alan; Williamson, Michael G.; Zhang, Yue (May)
作者单位：University of Waterloo; University of Texas System; University of Texas Austin; Northwestern University
摘要：In an environment where individual productivity can be increased through efforts directed at a conventional task approach and more efficient task approaches that can be identified by thinking outside-the-box, we examine the effects of productivity-target difficulty and pay contingent on meeting and beating this target (i.e., target-based pay). We argue that while challenging targets and target-based pay can hinder the discovery of production efficiencies, they can motivate high productive effo...
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作者：Falsetta, Diana; Rupert, Timothy J.; Wright, Arnold M.
作者单位：University of Miami; Northeastern University - China
摘要：This study examines the effect of timing (gradual versus immediate) and direction (tax increase or decrease) of a tax change on taxpayer behavior. Specifically, we focus on capital gain tax changes and preferences for investment in riskier assets. We run an experiment with 117 participants who allocate investment dollars between two funds of differing risk. Drawing on mental accounting and hedonic editing (Thaler 1985; Thaler and Johnson 1990), we posit that a tax decrease (a gain) implemented...
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作者：Chen, Feng; Li, Yue
作者单位：University of Toronto
摘要：This study exploits an exogenous change to audit committee policy in Canada and presents new evidence on how high-quality corporate governance mitigates managerial resource diversion and improves firm values. We first examine why some firms listed on the Toronto Venture Exchange (TSX Venture) voluntarily adopted the more stringent governance policy in 2004 that requires all audit committee members to be independent and financially literate. We develop a parsimonious analytical model that shows...
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作者：Yu, Kun
作者单位：University of Massachusetts System; University of Massachusetts Boston
摘要：This study examines whether institutional ownership and analyst following affect the value relevance of disclosed versus recognized pension liabilities. Using a sample of firms with pension liabilities that were disclosed under SFAS No. 87 and subsequently recognized under SFAS No. 158 from 1999 to 2007, I find that off-balance-sheet pension liabilities are more value relevant for firms with a higher level of institutional ownership or analyst following in the pre-158 period. More importantly,...
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作者：Chen, Chen; Martin, Xiumin; Wang, Xin
作者单位：University of Auckland; Washington University (WUSTL); University of Hong Kong
摘要：We investigate whether insider selling affects the likelihood of firms receiving auditor going-concern opinions. Prior studies document significant negative market reactions to the issuance of going-concern opinions, indicating that such opinions convey bad news to investors. Insider sales followed by negative news are likely to attract regulators' scrutiny and investor class-action lawsuits. Therefore, we predict that, to reduce the risk of litigation, managers have incentives to avoid receiv...
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作者：Cassell, Cory A.; Huang, Shawn X.; Sanchez, Juan Manuel
作者单位：University of Arkansas System; University of Arkansas Fayetteville; Arizona State University; Arizona State University-Tempe; Texas Tech University System; Texas Tech University
摘要：We investigate whether retiring CEOs engage in opportunistic terminal-year forecasting behavior and the circumstances in which such behavior is likely to be more or less pronounced. Using a within-CEO empirical design, we find that retiring CEOs are more likely to issue forecasts of future earnings, and that they issue such forecasts more frequently in their terminal year relative to other years during their tenure with the firm. Further, retiring CEOs' terminal-year forecasts of future earnin...
