The Accounting Review

最新文章

• CEO Risk Taking Equity Incentives and Workplace Misconduct AI翻译
  作者：Chircop, Justin; Tarsalewska, Monika; Trzeciakiewicz, Agnieszka
  作者单位：Lancaster University; University of Exeter; University of York - UK
  摘要：We examine the relation between CEO risk taking equity incentives, as captured by CEO vega, and workplace misconduct. Workplace misconduct includes health and safety violations, non-compliance with labor laws, and other violations broadly related to labor exploitation, and it results in significant economic costs. Using regression analysis, matched sample tests, and a quasi-natural experiment, we find a positive relation between CEO vega and workplace misconduct. We identify a reduction in dis...
• Common Auditors in Supply Chain Relationships and the Provision of Trade Credit AI翻译
  作者：Lisic, Ling; Liu, Qiliang; Seidel, Timothy A.; Shi, Hanzhong; Wang, Angie; Zimmerman, Aleksandra
  作者单位：Virginia Polytechnic Institute & State University; Tongji University; Brigham Young University; Huazhong University of Science & Technology; Hong Kong Polytechnic University; State University System of Florida; Florida State University
  摘要：This study examines the association between a shared common auditor among suppliers and customers and trade credit. Using hand-collected pairwise trade credit data, we find that a supplier extends more trade credit to a customer audited by a common auditor. This association is robust to alternative design specifications and various sample restrictions to alleviate selection bias. We then interview trade credit managers and executives as a prelude to archival analyses exploring multiple potenti...
• Predicting Material Misstatements Using Machine Learning AI翻译
  作者：Parker, Chanyuan (Abigail) Zhang; Jiang, Lanxin; Cho, Soohyun; Vasarhelyi, Miklos A.
  作者单位：University of Texas System; University of Texas at San Antonio; State University of New York (SUNY) System; Stony Brook University; Rutgers University System; Rutgers University New Brunswick
  摘要：This study uses machine learning models to forecast future material misstatements. Using raw financial data, audit variables, qualitative features, and an efficient algorithm, we design a dynamic model that continuously updates with new information. Our model outperforms the benchmarks for both one-year-ahead and two-year-ahead predictions in terms of out-of-sample predictive power and economic impact on net income. Using Explainable Artificial Intelligence, we identify key predictive features...
• Measuring Cash Flows: A Guide for Researchers AI翻译
  作者：Chen, Ciao-Wei; Melessa, Samuel J.; Mergenthaler, Richard D.; Ohn, Heejin
  作者单位：University of Illinois System; University of Illinois Urbana-Champaign; University of Nebraska System; University of Nebraska Lincoln; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; University of Oklahoma System; University of Oklahoma - Norman
  摘要：Cash flows play an important role in the accounting and finance literature. They are a major component of earnings, serve as a benchmark for earnings and accruals, and are an input to firm valuation. Although accrual measurement has been extensively studied, research on cash flow measurement remains limited. We review cash flow proxies researchers use in prior literature and highlight the importance of (1) identifying and defining the cash flow construct of interest based on the underlying res...
• Diversity and Career Trajectories: Evidence from LinkedIn Data on Race, Ethnicity, and Gender in Auditing AI翻译
  作者：Ahn, Jaehan; Hoitash, Rani; Hoitash, Udi; Krause, Eric
  作者单位：University of Massachusetts System; University of Massachusetts Boston; Bentley University; Northeastern University; Iowa State University
  摘要：We use large, detailed data on individual auditor employment to examine the antecedents of turnover decisions and subsequent career paths of diverse individuals in public accounting-namely women and racial/ethnic minority groups (Asian, Black, and Hispanic). Despite investments in diversity, equity, and inclusion (DEI) recruiting by firms, we observe a higher likelihood of turnover among diverse auditors. Consistent with the principle of homophily, we find that same-group representation is cru...
• Dynamic Adjustment of CEO Incentives, Contracting Frictions, and Firm Performance AI翻译
  作者：Bushman, Robert; Dai, Zhonglan; Zhang, Weining
  作者单位：University of North Carolina; University of North Carolina Chapel Hill; University of North Carolina School of Medicine; University of Texas System; University of Texas Dallas
  摘要：We conceptualize equity incentive contracting as a dynamic process in which contracting frictions limit the speed at which equity incentives adjust to target levels. Slower adjustment speeds imply more prolonged deviations from value-maximizing targets and thus more severe negative effects on future performance. We find that contracting frictions significantly slow the speed of adjustment to target incentives (SOA). Consistent with frictions prolonging the persistence of deviations from target...
• The Effect of Potential Entrants on Audit Market Competition AI翻译
  作者：Williams, Devin
  作者单位：University of Oklahoma System; University of Oklahoma - Norman
  摘要：Regulators and academics have long explored the implications of audit market competition on audit pricing and quality, primarily focusing on large audit firms. Despite a presumption of competition among smaller accounting firms, little evidence exists regarding whether and how competition influences audit pricing and quality among them. Additionally, within this market, prior research typically considers competition only from audit offices already serving public-company clients. This study use...
• Corporate Financing Activities and Business Cycle Fluctuations AI翻译
  作者：Hann, Rebecca N.; Li, Congcong; Mazur, Laurel; Lee, Hanna
  作者单位：University System of Maryland; University of Maryland College Park; Duquesne University; University of Notre Dame
  摘要：We examine whether corporate financing activities (CFA) in aggregate convey information about the macroeconomy. Using statement of cash flow information to construct a bottom-up measure of CFA, we find that it has significant predictive power for future economic activity when we exclude a small set of firms whose external financing is largely insulated from macroeconomic conditions. This CFA index has predictive power beyond that of the Gilchrist-Zakrajsek credit spread, aggregate earnings, an...
• ESG Disclosure, Market Forces, and Investment Efficiency AI翻译
  作者：Xue, Hao
  作者单位：Duke University
  摘要：This paper examines the impact of environmental, social, and governance (ESG) disclosure on firm investment. The analysis characterizes the optimal precision of ESG disclosure that channels investors' tastes for ESG into firm investment. Although it is tempting to think that the optimal ESG disclosure becomes more precise when investors care more about ESG, I show this intuition is incomplete because it overlooks the fact that stronger tastes for ESG change how investors use information. Apply...
• Digital Traffic, Financial Performance, and Stock Valuation AI翻译
  作者：Armstrong, Christopher S.; Konchitchki, Yaniv; Zhang, Biwen
  作者单位：Stanford University; University of California System; University of California Berkeley
  摘要：We examine the economic implications of digital traffic on firms' financial performance, stock valuation, and financial surprises. Our analysis shows that timely flows of digital traffic are contemporaneous and leading indicators of firms' revenue and profitability-both gross and operating. Moreover, we show that digital traffic contains novel information about firms' future performance that is not entirely reflected in stock prices, analyst forecasts, or historical (i.e., time series) financi...