-
作者：Gopalan, Yadav K.; Imdieke, Andrew J.; Schroeder, Joseph H.; Stuber, Sarah B.
作者单位：Indiana University System; IU Kelley School of Business; Indiana University Bloomington; Federal Reserve System - USA; Federal Reserve Bank - St. Louis; University of Notre Dame; Texas A&M University System; Texas A&M University College Station; Mays Business School
摘要：We exploit a regulatory change to examine whether bank regulator strictness is affected when regulators no longer rely on external assurance. In the absence of external assurance, we find that banks report higher nonaccrual loans, higher troubled debt restructurings, and both a timelier loan loss provision and higher quality allowance for loan loss reserve. Further, regulators spend more days performing targeted bank examinations for banks affected by the regulatory change. We do not find evid...
-
作者：Schafhautle, Sandra G.; Veenman, David
作者单位：University of Pennsylvania; University of Amsterdam
摘要：This study examines whether crowdsourced forecasts of earnings and revenues help investors unravel bias in earnings announcement news, which is commonly derived from analyst forecasts. Our results suggest that investors, on average, understand and price the predictive signals reflected in crowdsourced forecasts about the bias in analyst -based earnings and revenue surprises. Using the staggered addition of firms to the Estimize platform, we find that crowdsourced coverage is associated with re...
-
作者：Ashby, Jason A.; Chyz, James A.; Myers, Linda A.; Whipple, Benjamin C.
作者单位：University of Louisiana System; University of Louisiana Monroe; University of Tennessee System; University of Tennessee Knoxville; University System of Georgia; University of Georgia
摘要：We test whether firms that exclude the effects of amortization from non-GAAP earnings allocate more of an acquisition's purchase price to definite -lived intangible assets (DLIA). This strategy can yield two potential benefits: it can (1) increase non-GAAP earnings by shifting depreciation of tangible assets, which is often included in non-GAAP earnings, to amortization of DLIA, which non-GAAP earnings exclude, and (2) decrease the likelihood of future impairments by shifting allocations from ...
-
作者：Jung, Sumi
作者单位：Yonsei University
摘要：This paper investigates whether and how firms receiving benefits through their connections to politicians use accounting discretion to mitigate the costs associated with negative publicity. I utilize a unique setting that captures the change in political costs arising from chairmanship appointments to influential U.S. Senate committees. Firms in the home state of a promoted officeholder often receive preferential treatment, drawing public scrutiny and incentivizing them to avoid reporting extr...
-
作者：Hutchens, Michelle; Rego, Sonja O.; Williams, Brian
作者单位：University of Illinois System; University of Illinois Urbana-Champaign; Indiana University System; Indiana University Bloomington; IU Kelley School of Business; Texas A&M University System; Texas A&M University College Station; Mays Business School
摘要：We examine the relations between tax avoidance and two components of firm risk (priced risk and idiosyncratic risk) using latent class mixture models. OLS regressions suggest that tax avoidance is negatively related to both priced risk and idiosyncratic risk. However, results from latent class mixture models reveal that 35.6 (58) percent of the sample exhibits a significant positive association between tax avoidance and priced (idiosyncratic) risk and firm characteristics are strikingly differ...
-
作者：Li, Edward Xuejun; Neamtiu, Monica; Tu, Zhiyuan
作者单位：City University of New York (CUNY) System; Baruch College (CUNY); Southwestern University of Finance & Economics - China
摘要：We study firms' decisions to withhold loan covenant details by focusing on a unique disclosure-related cost. Prior research documents the prevalence of tight initial covenants that are selectively relaxed in future renegotiations. This uncertainty in renegotiation outcomes can generate a disclosure-related cost because disclosing a snapshot of initial covenants with a high likelihood of violation could lead to harmful outsider reactions (e.g., trade credit cuts) to violations that may be event...
-
作者：Li, Bin; Venkatachalam, Mohan
作者单位：University of Houston System; University of Houston; Duke University
摘要：This paper evaluates the real effects of the new lease standard, ASC 842, on firms' investment and operational outcomes. Using a sample of airline companies, we find that, subsequent to the promulgation of ASC 842 (2016-2018), public airlines reduce operating lease usage by about seven to ten percentage points relative to private airlines. The reduced lease usage is replaced by increased ownership, suggesting an equilibrium shift in firms' investment due to changes in the cost -benefit tradeof...
-
作者：Corona, Carlos; Huang, Zeqiong; Hwang, Hyun
作者单位：University System of Ohio; Ohio State University; Yale University; University of Texas System; University of Texas Austin
摘要：Uniformity is an essential feature of financial reporting, yet its desirability has long been debated. We study a model in which firms decide whether to adopt either their locally preferred accounting methods or a common method, followed by an investor allocating capital across firms. Firms' choices of a common method are strategic complements in attaining more comparable reports. As a result, multiple equilibria may exist. Specifically, an equilibrium in which firms use their local methods al...
-
作者：Bailey, Charles D.
-
作者：Kimbrough, Michael D.; Paharia, Neeru; Wang, Xu (Frank); Wei, Sijing
作者单位：University System of Maryland; University of Maryland College Park; Arizona State University; Arizona State University-Tempe; Saint Louis University; Creighton University
摘要：We provide evidence from the first short -window event study of consumers' perceptual responses to earnings announcements using daily consumer perception data. We document a positive association between the change in consumers' overall perceptions of a brand at the time of the earnings announcement and the earnings surprise-that is, a positive consumer earnings response coefficient (CERC). CERC is larger when there is greater traditional news or social media activity, indicating that news diss...
