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作者：Narayanamoorthy, Gans; Page, John; Song, Bohan
作者单位：Tulane University; University of Alberta
摘要：Insurance pricing is subject to stricter regulation in some states than others. This cross-sectional variation, coupled with the occurrence of staggered deregulation in several states, enables a powerful test of the political cost hypothesis that managers manipulate accruals to mitigate adverse effects of rate regulation. We show that insurers understate their loss reserve accruals in more regulated regimes, a finding that contrasts with most prior studies documenting expense-increasing accrua...
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作者：Beneish, Messod D.; Farber, David B.; Glendening, Matthew; Shaw, Kenneth W.
作者单位：Indiana University System; IU Kelley School of Business; Indiana University Bloomington; Indiana University System; Indiana University Indianapolis; IU Kelley School of Business; University of Missouri System; University of Missouri Columbia
摘要：This study examines the incremental predictive power of aggregate measures of financial misreporting for recession and real gross domestic product (GDP) growth. We draw on prior research suggesting that misreporting has real economic effects because it represents misinformation on which firms base their investment, hiring, and production decisions. We find that aggregate M-Score incrementally predicts recessions at forecast horizons of five to eight quarters ahead. We also find that aggregate ...
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作者：Keusch, Thomas
作者单位：INSEAD Business School
摘要：Using hand-collected data on CEO appointments during shareholder activism campaigns, this study examines the relation between activist involvement in CEO recruiting and frictions in CEO hiring decisions. The results indicate that appointments of CEOs who are recruited with shareholder activist influence are associated with more favorable stock market reactions and stronger profitability improvements than appointments without activist involvement. In contrast, I find little evidence that shareh...
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作者：Guo, Re-Jin; Zhong, Rong (Irene)
作者单位：University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital
摘要：Analysts are recognized for their expertise in predicting industry growth, yet little is known about whether CEOs learn from analysts' insights to guide investment decisions. Focusing on conglomerates where CEOs are underinformed about segment growth opportunities, we find that CEOs learn industry insights from analysts to adjust internal capital allocation. The extent of learning increases when analysts have closer proximity to CEOs or expertise in segments where CEOs face larger internal kno...
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作者：Jacob, Martin; Todtenhaupt, Maximilian
作者单位：WHU - Otto Beisheim School of Management; Norwegian School of Economics (NHH)
摘要：We examine the effect of compliance frictions in reclaiming foreign withholding tax overpayments on foreign portfolio investment (FPI) using data on bilateral FPI around the globe and U.S. institutional investors' foreign holdings. Exploiting variation in withholding tax overpayments for 36 investor countries and 110 issuer countries, we find that withholding tax overpayments adversely affect FPI because of the high compliance costs to international investors in claiming foreign tax credits. C...
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作者：Feng, Zhuoan; Francis, Jere R.; Shan, Yaowen; Taylor, Stephen L.
作者单位：University of Waikato; Maastricht University; University of Technology Sydney
摘要：Prior research finds that clients of high-quality auditors report higher-quality GAAP earnings. We extend this research to investigate whether auditor quality is associated with the quality of voluntarily disclosed non-GAAP earnings measures. Using a sample of Australian firms disclosing annual non-GAAP metrics, we find that clients of high-quality auditors are more likely to voluntarily disclose non-GAAP earnings numbers. However, clients of high -quality auditors make adjustments in calculat...
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作者：Kielty, Patrick D.; Wang, K. Philip; Weng, Diana L.
作者单位：University System of Ohio; Ohio State University; State University System of Florida; University of Florida; City University of New York (CUNY) System; Baruch College (CUNY)
摘要：Complex disclosures have long been a major source of borrowers' poor understanding of mortgages. We examine the effect of simplifying mortgage disclosures in a difference-in-differences design around a significant disclosure rule mandated by the Consumer Financial Protection Bureau in 2015. We find that inexperienced borrowers (first-time home buyers) pay significantly lower interest rates after the disclosure regulation than experienced borrowers (repeat buyers), suggesting that simplifying t...
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作者：Capkun, Vedran; Lou, Yun; Otto, Clemens A.; Wang, Yin
作者单位：Hautes Etudes Commerciales (HEC) Paris; Singapore Management University
摘要：Using data on the registration of clinical trials and the disclosure of trial results, we examine how firms respond to peer disclosures. We find that firms are less likely to disclose their own trial results if the results of a larger number of closely related trials are disclosed by their peers. This relation is stronger if the firms face higher competition (as measured by the number of competing trials). It is weaker if the firms are further along in their research than the peers (as measure...
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作者：Huang, Allen H.; Kraft, Pepa; Wang, Shiheng
作者单位：Hong Kong University of Science & Technology; Hautes Etudes Commerciales (HEC) Paris
摘要：This study examines whether and when credit ratings are useful for accounting fraud prediction. We find that negative rating actions by Standard & Poor's (S&P), an issuer-paid credit rating agency (CRA), have predictive ability for fraud incremental to fraud prediction models (e.g., F-score) and other market participants. In contrast, rating actions by Egan-Jones Rating Company (EJR), an investor-paid CRA relying on public information, have less predictive ability, which is subsumed by S&P and...
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作者：Jiang, Xu; Tang, Chao; Zhang, Gaoqing
作者单位：Duke University; Hong Kong University of Science & Technology; University of Minnesota System; University of Minnesota Twin Cities
摘要：We study the economic impacts of adopting harmonized accounting standards when firms' investments exhibit beauty contest features. We model harmonized accounting standards as common/correlated noises in firms' accounting reports. We show that while more harmonized accounting standards have ambiguous effects on the reports' informativeness in representing firms' underlying fundamentals, they always reduce their usefulness in forecasting aggregate investments. Therefore, the stronger the beauty ...
