The Accounting Review

最新文章

• Examining the Potential Benefits of Internal Control Monitoring Technology AI翻译
  作者：Masli, Adi; Peters, Gary F.; Richardson, Vernon J.; Sanchez, Juan Manuel
  作者单位：University of Arkansas System; University of Arkansas Fayetteville
  摘要：We analyze the potential benefits that firms can realize from implementing technology specifically aimed at monitoring the effectiveness of their internal control systems. The Committee of Sponsoring Organizations of the Treadway Commission asserts that effective internal control monitoring should enhance the efficiency of internal control processes, and, in turn, the assurance over such processes (COSO 2009a). We develop hypotheses to test the realization of these potential benefits. Specific...
• Does Mandatory Adoption of International Financial Reporting Standards in the European Union Reduce the Cost of Equity Capital? AI翻译
  作者：Li, Siqi
  作者单位：Santa Clara University
  摘要：This study examines whether the mandatory adoption of International Financial Reporting Standards (IFRS) in the European Union (EU) in 2005 reduces the cost of equity capital. Using a sample of 6,456 firm-year observations of 1,084 EU firms during the 1995 to 2006 period, I find evidence that, on average, the IFRS mandate significantly reduces the cost of equity for mandatory adopters by 47 basis points. I also find that this reduction is present only in countries with strong legal enforcement...
• The Balanced Scorecard as a Strategy-Evaluation Tool: The Effects of Implementation Involvement and a Causal-Chain Focus AI翻译
  作者：Tayler, William B.
  作者单位：Emory University
  摘要：Using an experiment, I examine whether involvement in scorecard implementation can mitigate the effects of motivated reasoning that occur when the scorecard is framed as a causal chain rather than merely as a balanced set of measures. Psychological research on motivated reasoning suggests that managers will evaluate and interpret data in ways consistent with preferences, increasing their tendency to arrive at conclusions that are consistent with their desired conclusions (Kunda 1990). Consiste...
• Client Importance, Institutional Improvements, and Audit Quality in China: An Office and Individual Auditor Level Analysis AI翻译
  作者：Chen, Shimin; Sun, Sunny Y. J.; Wu, Donghui
  作者单位：Hong Kong Polytechnic University
  摘要：This study examines how the legal and regulatory changes in China affect the relationship between client economic importance and audit quality. At the individual auditor level, we find that the propensity to issue modified audit opinions (MAOs) is negatively correlated with client importance from 1995 to 2000. However, from 2001 to 2004, when the institutional environment became more investor-friendly, the propensity to issue MAOs is positively associated with client importance. These findings...
• Earnings Management Using Discontinued Operations AI翻译
  作者：Barua, Abhijit; Lin, Steve; Sbaraglia, Andrew M.
  作者单位：State University System of Florida; Florida International University
  摘要：This study investigates whether managers use classification shifting to manage earnings when reporting discontinued operations. Using a methodology similar to McVay (2006), we find evidence consistent with the hypothesis that firms shift operating expenses to income-decreasing discontinued operations to increase core earnings. Our findings also indicate that managers use classification shifting to meet or beat analysts' forecasts. Finally, we find that, since the introduction of SFAS No. 144, ...
• The Effects of Reporting Complexity on Small and Large Investor Trading AI翻译
  作者：Miller, Brian P.
  作者单位：Indiana University System; Indiana University Bloomington; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
  摘要：This study examines the effects of financial reporting complexity on investors' trading behavior. I find that more complex (longer and less readable) filings are associated with lower overall trading, and that this relationship appears due to a reduction in small investors' trading activity. Additional evidence suggests that the association between report complexity and lower abnormal trading is driven by both cross-sectional variation in firms' disclosure attributes and variations in disclosu...
• Whistle-Blowing: Target Firm Characteristics and Economic Consequences AI翻译
  作者：Bowen, Robert M.; Call, Andrew C.; Rajgopal, Shiva
  作者单位：University of Washington; University of Washington Seattle; University System of Georgia; University of Georgia; Emory University
  摘要：We document the first systematic evidence on the characteristics and economic consequences of firms subject to employee allegations of corporate financial misdeeds. First, compared to a control group that avoided public whistle-blowing allegations, firms subject to whistle-blowing allegations were characterized by unique firm-specific factors that led employees to expose alleged financial misdeeds. Second, on average, whistle-blowing announcements were associated with a negative 2.8 percent ma...
• The Impact of Performance Measure Discriminability on Ratee Incentives AI翻译
  作者：Ahn, Tae Sik; Hwang, Iny; Kim, Myung-In
  作者单位：Seoul National University (SNU); Drexel University; Inha University
  摘要：The literature addresses optimal contract design issues that the principal must address to provide proper incentives to the agent. However, there has been limited empirical assessment of how agents actually respond to the performance-evaluation schemes in the contracts offered them. Moreover, the literature overlooks factors, other than those from the pay-for-performance context, that may impact the effectiveness of incentive provisions. This study considers the effect of discriminability on a...
• Discretionary Revenues as a Measure of Earnings Management AI翻译
  作者：Stubben, Stephen R.
  作者单位：University of North Carolina; University of North Carolina Chapel Hill
  摘要：This study examines the ability of revenue and accrual models to detect simulated and actual earnings management. The results indicate that revenue models are less biased, better specified, and more powerful than commonly used accrual models. Using a simulation procedure, I find that revenue models are more likely than accrual models to detect a combination of revenue and expense manipulation. Using a sample of firms subject to SEC enforcement actions for a mix of revenue- and expense-related ...
• The Effect of Magnitude of Audit Difference and Prior Client Concessions on Negotiations of Proposed Adjustments AI翻译
  作者：Hatfield, Richard C.; Houston, Richard W.; Stefaniak, Chad M.; Usrey, Spencer
  作者单位：University of Alabama System; University of Alabama Tuscaloosa; Oklahoma State University System; Oklahoma State University - Stillwater; Mississippi State University
  摘要：This study reports the result of an experiment examining two aspects of the audit context that auditors likely do not suspect can influence audited account balances: the magnitude of an audit difference and the presence of a prior client concession. Negotiation theory shows that negotiators' initial positions (e.g., clients' unaudited balances) as well as feelings of reciprocity created by prior negotiations serve to create expectations for the current negotiation and, in turn, affect the outc...