-
作者：Rau, SE; Moser, DV
作者单位：Duquesne University; Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh
摘要：This study examines whether personally performing other audit tasks can bias supervising seniors' going-concern judgments. During an audit, the senior performs some audit tasks him/herself and delegates other tasks to staff members. When personally performing an audit task, the senior would focus on the evidence related to that task. We predict that such evidence will have greater influence on the senior's subsequent going-concern judgment. The results of our experiment are consistent with our...
-
作者：Collins, DW; Pincus, M; Xie, H
作者单位：University of Iowa; University of Arizona
摘要：This study provides an explanation for the anomalous significantly negative price-earnings relation using the simple earnings capitalization model for firms that report losses. We hypothesize and find that including book value of equity in the valuation specification eliminates the negative relation. This suggests that the simple earnings capitalization model is misspecified and the negative coefficient on earnings for loss firms is a manifestation of that misspecification. Furthermore, we pro...
-
作者：Lee, CWJ; Gu, ZY
作者单位：Tulane University; Hong Kong University of Science & Technology
摘要：We construct a dynamic multi-agent moral hazard model to analyze the interactions among the firm owner, the manager and the auditor. Moral hazard may arise in hierarchical agency because a rational monitoring agent may accept a side payment from the monitored agent for misrepresenting information to the principal. This multi-agent moral hazard problem is the essence of the concern for auditor independence. We show that a low-balling compensation scheme and the auditor's legal liability constit...
-
作者：Sengupta, P
作者单位：University of Hawaii System; University of Hawaii Manoa; State University System of Florida; University of Florida
摘要：This paper provides evidence that firms with high disclosure quality ratings from financial analysts enjoy a lower effective interest cost of issuing debt. This finding is consistent with the argument that a policy of timely and detailed disclosures reduces lenders' and underwriters' perception of default risk for the disclosing firm, reducing its cost of debt. The results also indicate that the relative importance of disclosures is greater in situations where there is greater market uncertain...
-
作者：Summers, SL; Sweeney, JT
作者单位：University of Missouri System; University of Missouri Columbia
摘要：This study investigates the relationship between insider trading and fraud. We find that in the presence of fraud, insiders reduce their holdings of company stock through high levels of selling activity as measured by either the number of transactions, the number of shares sold, or the dollar amount of shares sold. Moreover, we present evidence that a cascaded logit model, incorporating insider trading variables and firm-specific financial characteristics, differentiates companies with fraud f...
-
作者：Kachelmeier, SJ; Shehata, M
作者单位：McMaster University; United Arab Emirates University
摘要：Firms expend costly resources on audit-based monitoring schemes to improve interdivisional coordination, This study investigates the premise that the effectiveness of and demand for audit-based monitoring may be sensitive to societal factors, Data from a between-subjects experiment involving 60 compensated groups of four (a total of 240 subjects) indicates an interaction between the experiment's two factors: (1) country (20 groups conducted in Canada, 20 in Hong Kong and 20 in the People's Rep...
-
作者：Rankine, GW; Stice, EK
作者单位：Hong Kong University of Science & Technology
摘要：Stock dividends which increase outstanding shares by less than 25 percent require a transfer from retained earnings of the market value of the new shares, a much larger transfer than that required for stock dividends of 25 percent or more. Choosing a distribution factor near, but below, 25 percent may be an indication of management optimism that future income will replenish retained earnings, avoiding constraints on future cash distributions. In this study, firms declaring 20 percent and 25 pe...
-
作者：Hunton, JE; McEwen, RA
作者单位：Virginia Commonwealth University
摘要：Prior research indicates that analysts' forecasts of earnings tend to be optimistic. Analysts' optimism may be attributed to experience, cognitive information search strategies, motivational incentives or some combination thereof. In this study, we conduct an experiment that uses a computerized eye-movement retinal imaging system to capture the cognitive search strategy of 60 professional financial analysts. We find that, within the experiment, more accurate analysts employ a directive informa...
-
作者：Liu, CC; Ryan, SG; Wahlen, JM
作者单位：New York University; University of North Carolina; University of North Carolina Chapel Hill
摘要：Prior research has found that loan loss provisions are positively associated with bank stock returns and future cash flows, conditional on less discretionary information about loan default. We find that these positive valuation implications obtain only for loan loss provisions for low regulatory capital ban ks in the fourth fiscal quarter. Our regulatory capital-based tests are motivated by the idea that increased discretionary loan loss provisions are plausibly good news only for banks which ...
-
作者：Ittner, CD; Larcker, DF; Rajan, MV
摘要：This paper examines the factors influencing the relative weights placed on financial and non-financial performance measures in CEO bonus contracts. We find that the use of non-financial measures increases with the level of regulation, the extent to which the firm follows an innovation-oriented strategy, the adoption of strategic quality initiatives, and the noise in financial measures. We find no evidence that the choice of performance measures in bonus contracts is associated with the level o...
