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作者：Martin, Xiumin; Seo, Hojun; Yang, Jun; Kim, Daniel Sungyeon; Martel, Jordan
作者单位：Washington University (WUSTL); Purdue University System; Purdue University; Indiana University System; Indiana University Bloomington; Chung Ang University
摘要：We study how corporate boards set earnings performance targets in CEOs' annual incentive plans (AIPs) and the implications for strategic management earning guidance. We find that corporate boards rely on management and analyst information in setting the earnings performance targets, and the weight placed on each signal increases with its precision. We also find that management earnings guidance issued before compensation committee meetings (event-window management forecast (MF)) is more pessim...
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作者：Holzman, Eric R.; Miller, Brian P.; Twedt, Brady J.
作者单位：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：A longstanding literature suggests that earnings provide the market with relevant information about firm performance, but one often overlooked benefit is their role in disciplining market expectations. This study examines the role of earnings announcements in constraining potential mispricing associated with firm-specific media sentiment. We show that media sentiment-driven quarterly returns (orthogonal to risk factors and fundamental news) largely reverse when public earnings are released. Ou...
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作者：McClure, Charles G.
作者单位：University of Chicago
摘要：I develop a structural model to quantify the costs of tax avoidance. In the model, the firm trades off tax savings with tax audit risk, financial reporting considerations, and operational frictions imposed by tax avoidance, the last of which I label as nontax costs. The estimated parameters suggest nontax costs, which are difficult to observe, decrease pretax income by 6.4 percent or $58 million per firm-year. The large magnitude of this estimate can explain why firms appear to underutilize ta...
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作者：Gillette, Jacquelyn R.
作者单位：Massachusetts Institute of Technology (MIT)
摘要：This study examines how information spillovers from equity to debt markets (equity spillovers) affect sell-side debt analysts' activities and the informativeness of their reports. To explore this relation, I compare debt analyst reports for firms without equity spillovers (private firms) to firms with equity spillovers (public firms). I find that, absent equity spillovers, analysts rely more on mandatory SEC filings to fill the information gap for private firms. This additional effort, however...
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作者：Rajgopal, Shivaram; Srivastava, Anup; Zhao, Rong
作者单位：University of Calgary
摘要：Despite regulators' allegations that digital technology giants misuse their market power to earn abnormal profits, there is a dearth of systematic work on (1) whether digital-tech firms in general, and tech giants in particular, earn excess profits or (2) whether their abnormal profitability, if any, is due to market power. We use two alternative measures of economic profitability in addition to accounting rate of return (ARR): internal rate of return (IRR), which equates current investments t...
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作者：Wang, Kelly K.; Cheng, Mandy M.; Chang, Linda J.
作者单位：University of Technology Sydney; University of New South Wales Sydney
摘要：Prior research shows that individuals exhibit a propensity to surrogate performance measures for their underlying strategy, resulting in suboptimal strategic decisions. We investigate whether the incorporation of flexibility in contemporary performance measurement systems (PMSs) reduces surrogation propensity in the context of product innovation and whether this effect varies depending on environmental dynamism. We conduct a 2 x 2 experiment and find that PMS flexibility significantly lowers m...
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作者：Kubic, Matthew; Toynbee, Sara
作者单位：University of Texas System; University of Texas Austin
摘要：Staff at the U.S. Securities and Exchange Commission (SEC) conduct recurring reviews of firms' filings to deter misconduct and facilitate investor access to high-quality information. We identify the names of SEC staff who work on a comment letter and examine whether their prior involvement (i.e., continuity) is associated with comment letter quality. Our results are consistent with continuity leading to lower-quality comment letters. Continuity is associated with fewer substantive comments, ag...
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作者：Wentland, Kelly
作者单位：George Mason University
摘要：This study investigates whether industrial diversification generally provides a tax advantage and how the convexity of the tax system contributes to this benefit. The main findings show that multi-industry operations lower a firm's taxes and income volatility relative to single industry operations on average, but the benefit is not universal. Namely, there is no significant tax advantage when multi-industry firms have high crossindustry cash flow correlations or when limitations are placed on ...
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作者：Cade, Nicole L.; Garavaglia, Shannon M.; Hoffman, Vicky B.
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh
摘要：We conduct an experiment in the securities-based crowdfunding setting to investigate whether some investors avoid accounting information for psychological reasons, even when they understand the information is useful in their decision-making. Results suggest investors who experience relatively more psychological discomfort when working with quantitative information are relatively less likely to acquire the financial statements of a potential crowdfunding investment. Importantly, this effect is ...
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作者：Kim, Jeong-Bon; Lin, Yupeng; Mao, Ying; Wang, Zheng
作者单位：City University of Hong Kong; National University of Singapore; Lingnan University
摘要：This study examines the effect of banking market consolidations via mergers and acquisitions (M & As) on the role of banks in intermediating corporate tax planning through offshore tax haven operations. We find that bank clients significantly increase their tax haven operations after their banks are merged with others. In addition, such an increase is greater when a commercial bank merges with an investment bank and when the clients have greater tax planning opportunities. We also employ netwo...
