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作者：Ray, Korok
作者单位：University of Chicago
摘要：It is a common practice for firms to conduct performance evaluations of their employees and yet to withhold this information from those employees. This paper argues that firms strategically withhold performance information to retain workers. In particular, if the worker enjoys high outside options and is tempted to quit, then the firm chooses not to reveal his performance information in order to keep him on the job. The firm's equilibrium strategy is to fire if performance is sufficiently low,...
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作者：Fan, Qintao
作者单位：University of California System; University of California Berkeley
摘要：This paper investigates, both theoretically and empirically, how earnings management and ownership retention interact, and how these two jointly affect the equilibrium market valuation of IPO firms in the presence of information asymmetry. Analytically, this paper extends the univariate signaling framework of Leland and Pyle (1977) and derives an efficient signaling equilibrium in which both reported earnings and ownership retention are endogenously chosen to convey the IPO issuer's private in...
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作者：Sanchez, Maria H.; Agoglia, Christopher R.; Hatfield, Richard C.
作者单位：Rider University; University of Alabama System; University of Alabama Tuscaloosa
摘要：Auditors face the challenging tasks of attesting that the financial statements are free from material misstatement while simultaneously fostering a functional working relationship with the client. As the financial statements may be considered, in part, a product of negotiations between the auditor and client management (Antle and Nalebuff 1991), the negotiation strategy employed by the auditor may be useful in effectively fulfilling both tasks. To investigate the effect of auditor strategy on ...
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作者：Ogneva, Maria; Subramanyam, K. R.; Raghunandan, K.
作者单位：University of Southern California; State University System of Florida; Florida International University
摘要：We examine the association between cost of equity and internal control weakness (ICW) for firms that filed first-time Section 404 reports with the SEC. Using several proxies, we find higher implied cost of equity associated with ICW firms than for a control sample of firms that disclosed no ICW. However, the higher cost of equity associated with ICW disappears after controlling for primitive firm characteristics and for analyst forecast bias. Overall, we find that, on average, ICWs are not dir...
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作者：Chang, HH; Chen, JF; Liao, WM; Mishra, BK
作者单位：University of California System; University of California Riverside
摘要：We examine the impact on share prices of firms whose CEOs and CFOs certify their financial statements under oath, pursuant to the administrative order issued by the SEC on June 27, 2002. We hypothesize that (1) the certification provides assurance to investors by making disclosure more credible and by reducing information asymmetry between owners and management, and (2) the assurance value of certification is reflected in the stock price of the certifying company. Overall, the empirical result...
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作者：Jones, CL; Roberts, AA
作者单位：George Washington University; Boston College
摘要：Charities that use direct mailings or other activities that combine a public education effort with fundraising appeals must allocate the joint costs related to these activities to programs, fundraising, and administration. This study investigates whether charities use joint-cost allocations to manage the program ratio-a widely used measure of spending efficiency. Using a hand-collected dataset of 708 organ ization-year observations from 1992 to 2000, we find evidence that charities use joint c...
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作者：Cahan, SF; Zhang, W
作者单位：University of Auckland; Clarkson University
摘要：This study examines whether after Arthur Andersen's demise, successor auditors required more conservative accounting for their ex-Andersen clients in order to minimize litigation risk. We use unadjusted and performance-adjusted measures of abnormal accruals, and we examine the level of and changes in the abnormal accruals of ex-Andersen clients in 2002 relative to a control sample of clients that were audited by a Big 4 auditor in 2001 and 2002. We conduct univariate and multivariate tests. In...
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作者：Omer, Thomas C.; Bedard, Jean C.; Falsetta, Diana
作者单位：Texas A&M University System; Texas A&M University College Station; Bentley University; University of Miami
摘要：This study investigates auditor-provided tax services from 2000 to 2002, during which fees paid to auditors for nonaudit services (NAS) were disclosed, but separate disclosure of tax service fees was voluntary. We examine changes in the market for tax NAS in 2002, as Congress debated possible prohibition of these services. Using the Heckman MLE procedure to control for selection bias in tax fee disclosure, we find that a strong pre-2002 positive association between tax fees and higher than exp...
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作者：Matsumura, Ella Mae; Shin, Jae Yong
作者单位：University of Wisconsin System; University of Wisconsin Madison
摘要：Using 1997-1999 annual performance evaluation data of 214 postal stores in Korea, we find that financial performance improves following the implementation of an incentive plan that includes relative performance measures, and that under this incentive plan, the degree of common uncertainty is positively associated with store profitability. We also find evidence that the incentive effect of the plan is mitigated in stores at which the employees' perceived unfairness is likely to be high. Finally...
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作者：Carey, Peter; Simnett, Roger
作者单位：Monash University; University of New South Wales Sydney
摘要：Rotation of audit partners is one of the main policy initiatives that has been implemented in many jurisdictions around the world to deal with concerns about audit quality. The basis of any requirement limiting the tenure of audit partners is that there is a reduction in audit quality associated with long periods of tenure. Using data from Australia, where the audit partner can be identified and for a period where partner rotation was not mandatory, we examine the association between audit qua...
