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作者：Bertomeu, Jeremy; Hu, Peicong (Keri); Liu, Yibin
作者单位：Washington University (WUSTL); University of Hong Kong; National University of Singapore
摘要：Investors have a finite capacity to organize all information they receive from financial disclosures. Under rational inattention, we show that investor processing capacity affects the probability of disclosure. Our main result is that the likelihood of disclosure is inverse-U shaped in investor attention. For low levels of attention, more attention facilitates communication and increases disclosure; for high levels of attention, more attention better identifies, and therefore deters, unfavorab...
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作者：Chen, Ciao-Wei; Correia, Maria; Urcan, Oktay
作者单位：University of Illinois System; University of Illinois Urbana-Champaign; University of London; London School Economics & Political Science
摘要：We examine the real effects of lease-capitalization rules (i.e., standards that require firms to capitalize finance leases) on corporate investment. We show that the introduction of these rules leads to a decrease in investment, which is more pronounced for firms with high reliance on leases. We posit and find that lease capitalization affects investment via a learning channel and a contracting channel. Regarding the first channel, we argue that managers identify areas of overinvestment and ac...
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作者：Jackson, Scott B.; Salzsieder, Leigh; Schaefer, Tammie J.
作者单位：University of South Carolina System; University of South Carolina Columbia; University of Missouri System; University of Missouri Kansas City
摘要：Evidence reveals that managers exercise discretion over budget estimates, but little is known about whether revenues or expenses are more susceptible to budget discretion. Drawing upon regulatory focus theory, we predict a pattern of budget discretion that has not previously been identified. To test our theory, we conduct a series of experiments where managers face a goal to either minimize the performance metric to avoid missing the target (minimal budget goal) or maximize the performance met...
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作者：Yehuda, Nir; Armstrong, Christopher S.; Cohen, Daniel; Zhou, Xiaolu
作者单位：University of Delaware; Stanford University; Vanderbilt University; Chinese University of Hong Kong
摘要：We examine how firms' contractual relationships with their employees affect the design of their debt contracts, and the use of financial covenants in particular. Viewing the firm as the nexus of both explicit and implicit contractual relationships, we argue that managers cater to their employees' preferences when negotiating contractual terms with creditors. We argue that an increase in unemployment-insurance benefits reduces employees' cost of job loss, which, in turn, allows managers to take...
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作者：Baugh, Matthew D.; Schmardebeck, Roy
作者单位：Arizona State University; Arizona State University-Tempe; University of Tennessee System; University of Tennessee Knoxville
摘要：Policies and procedures that centralize decision making within an audit firm create auditor style effects. Prior research suggests this style increases financial-statement comparability, implicitly making financial statements more useful. However, a potential hazard of auditor style is the propagation of decision errors. We examine the association between auditor style and common disclosure issues among audit clients. We measure auditor style as the presence of a common auditor and use comment...
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作者：Cianciaruso, Davide; Marinovic, Ivan; Smith, Kevin
作者单位：New Economic School; Stanford University
摘要：We study the impact of asymmetric (i.e., conservative or aggressive) disclosure on a firm's price in the classic setting in which its stock is traded by risk-averse investors and noise or liquidity traders. We show that asymmetric accounting policies alter the relative risk faced by investors when they short versus long, which causes market liquidity to differ for positive versus negative demand shocks. As a result, accounting conservatism raises firms' valuations and lowers their expected ret...
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作者：Schafer, Peter
作者单位：Technical University of Munich
摘要：I predict that relative performance evaluation (RPE) CEOs avoid strategic differentiation and increase the correlation of their firms' returns with that of their peers. This prediction follows from a moral hazard model integrating strategic differentiation decisions: Differentiation enhances performance but exposes firms to risks not shared with peers, and the weakening RPE's risk-shielding effect. Consistent with my prediction, I find evidence that changes in peer-group correlation are higher...
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作者：Cussatt, Marc; Demere, Paul
作者单位：Clemson University; University System of Georgia; University of Georgia
摘要：We explore whether income tax accounting (ITA) for pensions provides measurement benefits incremental to U.S. GAAP. We use publicly reported Form 5500 defined-benefit pension expense and funding measures, which are calculated using ITA rules, and contrast them with parallel GAAP amounts. We document that ITA measures are more strongly associated with market value, future cash contributions, the cost of equity capital, and credit ratings than comparable GAAP measures, particularly when ITA bett...
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作者：Packard, Heidi A.; Pawliczek, Andrea; Skinner, A. Nicole
作者单位：University of Michigan System; University of Michigan; University of Colorado System; University of Colorado Boulder; University System of Georgia; University of Georgia
摘要：This paper examines voluntary disclosure in the context of shareholder scrutiny of executive compensation contracts. We find that firms voluntarily increase discussion of their performance within their CD&A disclosures when peer-benchmarked compensation relative to performance is high. In contrast, we do not find a similar increase in performance discussion in the corresponding MD&A disclosures, which suggests that the effect is not driven by firms' general disclosure practices. We also find t...
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作者：Jacob, Martin; Zerwer, Kira Lena
作者单位：University of Navarra; IESE Business School; WHU - Otto Beisheim School of Management
摘要：This paper examines investment responses to emission taxes and the role of tax incidence in passing on tax burdens. Using private firms from Spain and the introduction of an emission tax in 2013 in the Autonomous Community Valenciana, we show that investments decline in response to the emission tax. Importantly, this investment decline does not depend on the level of pollution but on economic factors related to tax incidence. Investments in firms operating in highly competitive markets, firms ...
