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作者：Dodgson, Mary Kate; Agoglia, Christopher P.; Bennett, G. Bradley
作者单位：Lehigh University; University of Massachusetts System; University of Massachusetts Amherst
摘要：During the interactive process of issue resolution, client managers may develop expectations about the auditor's position. We examine the effect that negative expectancy violations have on managers' pre-negotiation positions and how relational familiarity can moderate this effect. Through a series of experiments, we find that, when the partner's proposed adjustment is within the client's original expectations, managers offer greater concessions to a more familiar partner than to a less familia...
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作者：Hoitash, Rani; Hoitash, Udi; Kurt, Ahmet C.; Verdi, Rodrigo S.
作者单位：Bentley University; Northeastern University; Massachusetts Institute of Technology (MIT)
摘要：We propose a pairwise measure of financial statement benchmarking (FSB) that captures the degree of overlap in the financial statement line items reported by two firms. We validate FSB by showing its association with actual peer choices of analysts and corporate boards. We then test the practical implications of FSB in the context of strategic peer selection by these parties. We find that analyst (board) chosen peers with low pairwise FSB are more likely to be strategic selections and that the...
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作者：Lamoreaux, Phillip T.; Mowchan, Michael; Zhang, Wei
作者单位：Arizona State University; Arizona State University-Downtown Phoenix; Baylor University; University of Massachusetts System; University of Massachusetts Amherst
摘要：Regulatory economics suggests that one benefit of public enforcement is the deterrence of improper conduct. Using a difference-in-differences (DiD) design, we investigate whether a deterrence effect follows the revelation of Public Company Accounting Oversight Board (PCAOB) enforcement. We find that large audit firm offices improve audit quality following enforcement naming another office within their firm while small firm offices improve following enforcement of local small firm competitors, ...
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作者：Li, Chenchen; Li, Ningzhong; Zhang, Frank
作者单位：Nanjing University; University of Texas System; University of Texas Dallas; Yale University
摘要：We explore whether accounting fraud can be detected using the information of firms economically linked to a focal firm. Specifically, we examine whether customer information disclosed by a supplier firm, combined with customers' accounting information, helps to detect the supplier's revenue fraud. We first confirm the economic link between the supplier and customers by showing a strong positive correlation between the supplier's sales growth and the growth rate of total customer purchases. We ...
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作者：Gao, Janet; Merkley, Kenneth J.; Pacelli, Joseph; Schroeder, Joseph H.
作者单位：Georgetown University; Indiana University System; Indiana University Bloomington; IU Kelley School of Business; Harvard University; Indiana University System; IU Kelley School of Business; Indiana University Bloomington
摘要：In this study, we examine whether firms respond to internal control weaknesses (ICWs) by requiring accounting-specific skills when hiring rank-and-file employees. Using unique data containing an extensive collection of job postings, we document significant increases in firms' job postings that list accounting skills after the disclosure of an ICW. This effect is more pronounced for firms with better financial resources and when ICWs are more severe or personnel-related. In addition, our result...
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作者：Sheeley, Bret
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh; Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh
摘要：Companies are offering managers compensation incentives to increase promotions of underrepresented employees to higher level organizational positions (hereafter, diversity incentives). This study uses an experiment to examine how diversity incentives affect managers' promotion decisions and employees' effort choices before and after those decisions. The results suggest that managers' diversity incentives do not affect employees' pre-promotion effort choices. Additional analyses indicate that b...
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作者：Burke, Joseph; Towry, Kristy L.; Young, Donald; Zureich, Jacob
作者单位：Indiana University System; IU Kelley School of Business; Indiana University Bloomington; Emory University; Tilburg University
摘要：Research suggests that employees work harder under penalty contracts than under economically equivalent bonus contracts. We build on this literature by examining how the motivational advantage of penalty contracts depends on a common aspect of real-world contracts: payoff ambiguity. With payoff ambiguity, employees provide effort without knowing how much pay they will receive for a given level of performance. According to our theory, this ambiguity opens the door for employee optimism, which h...
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作者：McGuire, Sean T.; Rane, Scott G.; Weaver, Connie D.
作者单位：Texas A&M University System; Texas A&M University College Station; Mays Business School; State University System of Florida; University of Florida
摘要：We examine whether cost structure influences tax-motivated income shifting. We predict and find that U.S. multinational corporations (MNCs) with a less rigid cost structure engage in greater levels of tax-motivated income shifting relative to MNCs with a more rigid cost structure. This result is consistent with a less rigid cost structure providing greater flexibility to enable MNCs to take advantage of income-shifting opportunities. Further, we find that this relation is more pronounced when ...
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作者：Li, Edward X.; Lind, Gary; Ramesh, K.; Shen, Min
作者单位：City University of New York (CUNY) System; Baruch College (CUNY); Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh; Rice University
摘要：This study provides the first empirical evidence that the Federal Reserve (the Fed) systematically retrieves micro-level accounting reports to aid its understanding of the state of the macroeconomy. Using unique data identifying its direct access of corporate SEC filings, we show that the Fed tracks firms that are bellwethers and industry leaders, or that can engender systemic risk. The qualitative information in the Fed-accessed periodic reports explains the Fed's GDP growth forecasts for up ...
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作者：Smith, Kevin C.
作者单位：Stanford University
摘要：In this paper, I develop a measure of the difference in the amount of information that investors expect a forthcoming disclosure to contain should it reveal good news versus bad news (the disclosure's asymmetry). To do so, I first show that this asymmetry is linked to the skewness of returns that the disclosure creates. I then show that this skewness can be measured using a weighted change in option-implied return skewness leading up to the disclosure's release. The measure's ability to captur...
