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作者：Cheng, Qiang; Luo, Ting; Yue, Heng
作者单位：Singapore Management University; Tsinghua University; Peking University
摘要：Managers have great discretion in determining forecast characteristics, but little is known about how managerial incentives affect these characteristics. This paper examines whether managers strategically choose forecast precision for self-serving purposes. Building on the prior finding that the market reaction to vague forecasts is weaker than its reaction to precise forecasts, we find that for management forecasts disclosed before insider sales, more positive (negative) news forecasts are mo...
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作者：Gul, Ferdinand A.; Wu, Donghui; Yang, Zhifeng
作者单位：Monash University; Chinese University of Hong Kong; City University of Hong Kong
摘要：We examine whether and how individual auditors affect audit outcomes using a large set of archival Chinese data. We analyze approximately 800 individual auditors and find that they exhibit significant variation in audit quality. The effects that individual auditors have on audit quality are both economically and statistically significant, and are pronounced in both large and small audit firms. We also find that the individual auditor effects on audit quality can be partially explained by audit...
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作者：Hofmann, Christian; Rothenberg, Naomi R.
作者单位：University of Munich; University of Alberta
摘要：This study investigates whether having an upstream or downstream agent privately observe an interim performance measure and disseminating this measure to the other agent is valuable to the principal. The signal is informative about the upstream agent's action and positively correlated with output. If the upstream agent privately observes the signal, then there can be a higher cost of the downstream agent if the signal is sufficiently forward-looking. If the downstream agent privately observes ...
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作者：Carcello, Joseph V.; Li, Chan
作者单位：University of Tennessee System; University of Tennessee Knoxville; Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh
摘要：This paper investigates the effects on audit quality and audit fees of requiring the engagement partner to sign the audit report in the United Kingdom (U. K.). The effect of requiring the engagement partner to sign the audit report is timely since the Public Company Accounting Oversight Board (PCAOB) is considering mandating a similar requirement in the United States (U. S.). In the first year after the introduction of the signature requirement, we find a significant decline in abnormal accrua...
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作者：Kim, Yongtae; Li, Siqi; Pan, Carrie; Zuo, Luo
作者单位：Santa Clara University; Massachusetts Institute of Technology (MIT)
摘要：Using seasoned equity offerings (SEOs) from 1989 to 2008, we examine the role of accounting conservatism in the equity market. We find that issuers with a greater degree of conservatism experience fewer negative market reactions to SEO announcements. We further show that an important mechanism through which conservatism affects SEO announcement returns is by mitigating the negative impact of information asymmetry. Additional analyses suggest that our results are not driven by the effects of ot...
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作者：Bertomeu, Jeremy; Cheynel, Edwige
作者单位：City University of New York (CUNY) System; Baruch College (CUNY); Columbia University
摘要：This article develops a theory of standard-setting in which accounting standards emerge endogenously from an institutional bargaining process. It provides a unified framework with investment and voluntary disclosure to examine the links between regulatory institutions and accounting choice. We show that disclosure rules tend to be more comprehensive when controlled by a self-regulated professional organization than when they are under the direct oversight of elected politicians. These institut...
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作者：Du, Kai; Zhang, X. Frank
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; Yale University
摘要：We examine firms' financial reporting practices during the missing months that are induced by fiscal year changes and not covered by regular quarters. We find that firms tend to report much lower income for the missing months than for adjacent quarters, mainly by recording higher operating expenses. We also find that managers have various incentives to manage earnings. Executive compensation is not tied to firm performance in the transition period as it is in adjacent fiscal years. Growth firm...
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作者：Madsen, Paul E.
作者单位：State University System of Florida; University of Florida
摘要：Following the Civil Rights Movement and the quiet revolution in women's work over the years from 1950 to 1970, women and minorities increasingly joined the auditing profession while the profession ramped up efforts to encourage integration. The purpose of this study is to rigorously examine how the integration of auditors has evolved since the civil rights and quiet revolution period. The primary distinctive feature of this study is that it evaluates the auditing profession's integration by co...
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作者：Thornock, Jacob
作者单位：University of Washington; University of Washington Seattle
摘要：This study examines the effects of dividend taxation on the primary parties involved in a short sale: the lender of the stock and the short seller. For stock lenders, dividend taxation is associated with a decrease in the supply of shortable shares and an increase in equity lending fees around the dividend record date. For short sellers, potential reimbursement costs are associated with a significant decrease in short volume before the ex-dividend date followed by a significant increase after ...
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作者：Linck, James S.; Netter, Jeffry; Shu, Tao
作者单位：Southern Methodist University; University System of Georgia; University of Georgia
摘要：Despite a large literature on discretionary accruals, how the use of discretionary accruals impacts corporate financial decisions is not well understood. We hypothesize that a financially constrained firm with valuable projects can use discretionary accruals to credibly signal positive prospects, enabling it to raise capital to make the investments. We examine a large panel of firms during 1987 to 2009 and find that financially constrained firms with good investment opportunities have signific...
