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作者：Bamber, Linda Smith; Hui, Kai Wai; Yeung, P. Eric
作者单位：University System of Georgia; University of Georgia; Hong Kong University of Science & Technology
摘要：Nearly half of managers' forecasts of annual earnings per share (EPS) end in nickel intervals, whereas only about 20 percent of actual EPS end in nickel intervals. We provide evidence on the attributes, determinants, and consequences of this systematic wedge between managers' predictions and firms' ex post actual performance. Managers' nickel forecasts are not simply a benign response to uncertainty about up-coming earnings, because nickel forecasts are not only less accurate, but also they ar...
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作者：Bol, Jasmijn C.; Keune, Timothy M.; Matsumura, Ella Mae; Shin, Jae Yong
作者单位：University of Illinois System; University of Illinois Urbana-Champaign; University of South Carolina System; University of South Carolina Columbia; University of Wisconsin System; University of Wisconsin Madison; Seoul National University (SNU)
摘要：In a setting in which corporate headquarters dictates total sales targets, we study how supervisors allocate sales targets to individual stores. Specifically, we analyze whether supervisors strategically use discretion in the target-setting process to address compensation contracting issues. We first examine whether supervisors use discretion to manage compensation risk. The results are consistent with the agency-theoretic prediction that supervisors provide easier targets to stores facing hig...
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作者：Lisowsky, Petro
作者单位：University of Illinois System; University of Illinois Urbana-Champaign
摘要：Using confidential tax shelter and tax return data obtained from the Internal Revenue Service, this study develops and validates an expanded model for inferring the likelihood that a firm engages in a tax shelter. Results show that tax shelter likelihood is positively related to subsidiaries located in tax havens, foreign-source income, inconsistent book-tax treatment, litigation losses, use of promoters, profitability, and size, and negatively related to leverage. Supplemental tests show that...
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作者：Christensen, Peter O.; Sabac, Florin; Tian, Jie (Joyce)
作者单位：Aarhus University; University of Alberta
摘要：We derive sufficient conditions for ranking performance evaluation systems in multi-task agency models (using both optimal and linear contracts) in terms of a second-order stochastic dominance (SSD) condition on the likelihood ratios. The SSD condition can be replaced by a variance-covariance matrix of likelihood ratios (VCM) condition when the utility function is square-root, the performance measures are normally distributed, and for LEN models. We identify existing results derived under the ...
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作者：Koonce, Lisa; Williamson, Michael G.; Winchel, Jennifer
作者单位：University of Texas System; University of Texas Austin; University of South Carolina System; University of South Carolina Columbia
摘要：To curb opportunism in financial reporting, researchers and regulators have proposed that firms be required to report reconciliations of prior year estimates. We provide experimental evidence that such disclosures are not sufficient for nonprofessional investors to identify firms that are opportunistic in their estimates. We also offer evidence suggesting that the value of these disclosures can be enhanced when nonprofessional investors seek out information about the estimate accuracy of other...
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作者：Williams, Michael G.; Hughes, John S.; Levine, Carolyn B.
作者单位：University of California System; University of California Los Angeles; Carnegie Mellon University
摘要：In this study, we consider the effects of the asymmetry in capital gains tax policy on the communication of private information to investors. Assuming quite plausibly that firm managers tend to favor current stockholder returns relative to future stockholder returns, though not exclusively, we identify conditions under which limitations on the deductibility of capital losses lend efficacy to unverified public disclosures that allow managers of higher value firms to separate from lower value fi...
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作者：Laux, Volker; Newman, D. Paul
作者单位：University of Texas System; University of Texas Austin
摘要：The accounting profession has raised concerns that excessive liability exposure renders audit firms unwilling to provide audit services to risky clients, limiting the prospective clients' ability to raise external capital. We address this concern in a model in which the auditor evaluates the riskiness of the client before accepting the client engagement. We consider a setting in which a shift to stricter legal liability regimes not only increases the expected damage payments from the auditor t...
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作者：Blouin, Jennifer L.; Gleason, Cristi A.; Mills, Lillian F.; Sikes, Stephanie A.
作者单位：University of Pennsylvania; University of Iowa; University of Texas System; University of Texas Austin
摘要：FIN No. 48, Accounting for Uncertainty in Income Taxes (FASB 2006), requires firms to disclose tax reserves and to record changes in tax reserves at adoption of FIN No. 48 as cumulative effect adjustments in stockholders' equity. We predict that between the enactment and adoption of FIN No. 48, relative to historical levels, firms settle disputes more often to potentially decrease visibility to the IRS and release reserves more often to reduce scrutiny and increase earnings (as opposed to reta...
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作者：Menon, Krishnagopal; Williams, David D.
作者单位：Boston University; University System of Ohio; Ohio State University
摘要：The literature provides mixed evidence on whether investors find audit reports modified for going concern reasons to be useful. Using a substantially larger sample than previous studies, we observe negative excess returns when the going concern audit report (GCAR) is disclosed. We find that the reaction is more negative if the GCAR cites a problem with obtaining financing, suggesting that the GCAR provides new information to investors. Also, the reaction is more adverse if the GCAR triggers a ...
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作者：Bamber, Linda Smith; Jiang, John (Xuefeng); Wang, Isabel Yanyan
作者单位：University System of Georgia; University of Georgia; Michigan State University
摘要：Financial economics has posited a limited role for idiosyncratic noneconomic manager-specific influences, but the strategic management literature suggests such individual influences can affect corporate outcomes. We investigate whether individual managers play an economically significant role in their firms' voluntary financial disclosure choices. Tracking managers across firms over time, we find top executives exert unique and economically significant influence (manager-specific fixed effects...
