The Accounting Review

最新文章

• Are Investors Confused by Restatements after Sarbanes-Oxley? AI翻译
  作者：Burks, Jeffrey J.
  作者单位：University of Notre Dame
  摘要：Regulators have expressed concern that investors are confused by the large number and questionable materiality of accounting restatements since passage of the Sarbanes-Oxley Act (SOX). This study looks for evidence of investor confusion by examining stock returns and trading volume. I find that the initial price reaction to restatement announcements becomes significantly less negative after SOX, even after controlling for the less egregious nature of post-SOX restatements. To assess whether th...
• On Testing Business Models AI翻译
  作者：Huelsbeck, David P.; Merchant, Kenneth A.; Sandino, Tatiana
  作者单位：University of Melbourne; University of Southern California
  摘要：This study explores decisions related to formal empirical tests of business models and interpretations and uses of those tests. Business models describe managers' rationales as to how their organizations will achieve success. This study documents a test of one company's business model under seemingly favorable conditions for such a test-a successful single-product firm following a consistent strategy over a long period of time with stable management and publicly traded stock. Although the find...
• More Evidence of Bias in the Differential Timeliness Measure of Conditional Conservatism AI翻译
  作者：Patatoukas, Panos N.; Thomas, Jacob K.
  作者单位：University of California System; University of California Berkeley; Yale University
  摘要：Despite the conceptual appeal and popularity of the differential timeliness (DT) measure of conditional conservatism proposed in Basu (1997), Dietrich et al. (2007) and Givoly et al. (2007) have identified considerable biases associated with that measure. We renew their call to avoid using the DT measure because it is affected unexpectedly by two empirical regularities-namely, scale is negatively related to (1) deflated mean earnings and (2) variance of stock returns. Even though these regular...
• Warranty Reserve: Contingent Liability, Information Signal, or Earnings Management Tool? AI翻译
  作者：Cohen, Daniel; Darrough, Masako N.; Huang, Rong; Zach, Tzachi
  作者单位：University of Texas System; University of Texas Dallas; City University of New York (CUNY) System; Baruch College (CUNY); University System of Ohio; Ohio State University
  摘要：We examine the information role of accounting disclosures on warranties, utilizing a database that became available due to the requirements of FIN 45. First, because firms use warranty policies as a business strategy to promote their products, a warranty reserve can serve two roles: an information signal regarding product quality, as well as a contingent liability. Consistent with this view, we find that the stock market recognizes that: (1) the warranty reserve contains information about firm...
• The Role of Newswires in Screening and Disseminating Value-Relevant Information in Periodic SEC Reports AI翻译
  作者：Li, Edward Xuejun; Ramesh, K.; Shen, Min
  作者单位：University of Rochester; Rice University; George Mason University
  摘要：We examine the role of newswires in identifying and conveying market-moving information in periodic SEC reports to capital market participants. Using data on Dow Jones Newswires, we find that newswires are more likely to send alerts on firms that do not release preliminary earnings, have credit ratings, are included in major market indices, have litigation exposure, or report losses. Reflective of the market's focus on certain key events, firms with a nonstandard audit opinion, in the process ...
• Should Investors Follow the Prophets or the Bears? Evidence on the Use of Public Information by Analysts and Short Sellers AI翻译
  作者：Drake, Michael S.; Rees, Lynn; Swanson, Edward P.
  作者单位：University System of Ohio; Ohio State University; Texas A&M University System; Texas A&M University College Station
  摘要：We investigate whether short sellers and analysts differ in their use of information that is predictive of future returns. We find that short interest is significantly associated in the expected direction with all 11 variables examined. In contrast, analysts tend to positively recommend stocks with high growth, high accruals, and low book-to-market ratios, despite these variables having a negative association with future returns. We then investigate the profitability of using short interest in...
• Overvaluation and the Choice of Alternative Earnings Management Mechanisms AI翻译
  作者：Badertscher, Brad A.
  作者单位：University of Notre Dame
  摘要：In this study I examine how the degree and duration of overvaluation affect management's use of alternative within-GAAP earnings management, restrictions on further exploitation of within-GAAP accruals management, and subsequent non-GAAP earnings management. Further, I examine how one type of earnings management segues into another type as overvaluation persists. I present evidence that the longer the firm is overvalued, the greater is the amount of total earnings management. I also find that ...
• Dividends, Share Repurchases, and Tax Clienteles: Evidence from the 2003 Reductions in Shareholder Taxes AI翻译
  作者：Blouin, Jennifer L.; Raedy, Jana S.; Shackelford, Douglas A.
  作者单位：University of Pennsylvania; University of North Carolina; University of North Carolina Chapel Hill; National Bureau of Economic Research
  摘要：This study jointly evaluates firm-level changes in investor composition and shareholder distributions following a 2003 reduction in the dividend and capital gains tax rates for individuals. We find that directors and officers, but not other individual investors, rebalanced their portfolios to maximize after-tax returns in light of the new tax rules. We also find that firms adjusted their distribution policy (specifically, dividends versus share repurchases) in a manner consistent with the alte...
• Once Bitten, Twice Shy: The Relation between Outcomes of Earnings Guidance and Management Guidance Strategy AI翻译
  作者：Feng, Mei; Koch, Adam S.
  作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh; University of Virginia
  摘要：We examine how management quarterly guidance strategy is affected by various outcomes from previously issued guidance. We find that managers are less likely to provide quarterly earnings guidance for a given year when past management forecasts have been overly optimistic, when past forecasts were unsuccessful at influencing analysts' expectations, when past forecasts failed to reduce information asymmetry, and when past forecasts resulted in earnings disappointments. For firms that continue to...
• Perceptions of Investment Risk Associated with Material Control Weakness Pervasiveness and Disclosure Detail AI翻译
  作者：Rose, Jacob M.; Norman, Carolyn Strand; Rose, Anna M.
  作者单位：University System Of New Hampshire; University of New Hampshire; Virginia Commonwealth University
  摘要：This research examines whether investors adjust their assessments of investment risk in response to material control weakness disclosures, the pervasiveness of material control weaknesses, and the detail of explanation provided regarding the pervasiveness of material control weaknesses. Findings from a laboratory experiment with 97 nonprofessional investors, a second experiment with 53 nonprofessional investors, and surveys of 47 investors and 28 Fortune 500 directors confirm prior archival fi...