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作者：Gale, Brian
作者单位：University of Washington; University of Washington Seattle
摘要：Review correspondence between the SEC and firms is a potentially valuable resource for investors, revealing important information about firms' financial reporting quality. Research suggests that reducing access costs (i.e., the amount of effort required to access review correspondence) could increase investors' processing of this important information. Drawing on psychology theory, I predict and find that access costs interact with another key characteristic within the SEC's control-review amb...
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作者：Beneish, Messod D.; Vorst, Patrick
作者单位：Indiana University System; Indiana University Bloomington; IU Kelley School of Business; Maastricht University
摘要：We compare seven fraud prediction models with a cost-based measure that nets the benefits of correctly anticipating instances of fraud against the costs borne by incorrectly flagging non-fraud firms. We find that even the best models trade off false to true positives at rates exceeding 100:1. Indeed, the high number of false positives makes all seven models considered too costly for auditors to implement, even in subsamples where misreporting is more likely. For investors, M-Score and, at high...
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作者：Fiechter, Peter; Novotny-Farkas, Zoltan; Renders, Annelies
作者单位：University of Neuchatel; Vienna University of Economics & Business; Maastricht University
摘要：Exploiting detailed disclosures mandated by Accounting Standard Codification (ASC) 820, we provide evidence for the return relevance of Level 3 fair value remeasurements for a comprehensive sample of U.S. listed banks. We find that Level 3 remeasurements recognized in earnings are more return relevant than those recognized in other comprehensive income (OCI). Our results suggest that Level 3 remeasurements in OCI partially reflect transitory illiquidity discounts that are less relevant when ba...
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作者：Bonner, Sarah E.; Kadous, Kathryn; Majors, Tracie M.
作者单位：University of Southern California; Emory University
摘要：We experimentally examine whether audit seniors??? use of simple cognitive processes for a complex task is affected by the strength of habits that they developed as staff. A habit is a mental association between a behavior and a specific context. We propose that, for seniors with stronger habits to use simple processes, the typical audit room context automatically activates those processes, making it harder to select the processes that are more effective for a complex task. As predicted, we fi...
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作者：Heitzman, Shane; Lester, Rebecca
作者单位：University of Southern California; Stanford University
摘要：We examine the relation between corporate cash holdings and tax net operating loss carryforwards (NOLs). The literature demonstrates that firms should distribute cash to shareholders rather than retain it and generate passive investment income taxed at both corporate and investor levels. However, if the firm's tax rate on passive income is lower than shareholders'-as when the firm has NOLs-theory also shows that the firm should retain cash and invest on the shareholders' behalf. Consistent wit...
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作者：Jiang, Xu; Xin, Baohua
作者单位：Duke University; University of Toronto
摘要：We explicitly model financial reporting discretion and earnings management in an investment setting where managers have incentives to behave myopically. We show that when managers are sufficiently, but not excessively, myopic, granting them some discretion over the mandatory financial reports can lead to better investment decisions. This finding contrasts with the conventional argument that financial reporting discretion facilitates earnings management and exacerbates managerial myopia, leadin...
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作者：Guo, Qiang; Koch, Christopher; Zhu, Aiyong
作者单位：University of Southern Denmark; Johannes Gutenberg University of Mainz; Southwestern University of Finance & Economics - China; Johannes Gutenberg University of Mainz; Southwestern University of Finance & Economics - China
摘要：This study investigates the value of auditor industry specialization. In the first step, we use a discrete choice model to derive the first-order demand for auditor industry specialization. Our results reveal that clients have a general preference for auditor industry specialization, relating to both audit firm and audit office specialization. We observe that specializations at the audit firm and audit office level are substitutes. We also find that larger, more complex clients have a stronger...
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作者：Petrov, Evgeny; Stocken, Phillip C.
作者单位：Hong Kong University of Science & Technology; Dartmouth College
摘要：We study the determinants of auditor industry specialization, the impact of specialization on fees and audit quality, and a regulator's optimal choice of audit standards in the presence of specialization. In industries with correlated firm values, a specialist auditor enjoys synergies from information spillovers between clients. These spillovers, however, only induce a specialist to decrease audit effort when the cost of effort and the prior precision of the firms' values are low. We derive em...
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作者：Chan, Eric W.; Evans, John H., III; Hong, Duanping
作者单位：University of Texas System; University of Texas Austin; Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh; Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh; University System of Georgia; Kennesaw State University
摘要：We investigate the consequences for non-promoted executives ( NPEs) in CEO tournaments. We find that NPEs' total incentives decrease following the end of a tournament based on evidence of their reduced future promotion prospects and limited adjustments to their compensation. Consistent with the theory that NPEs leave in response to this loss in incentives, results indicate that turnover is higher for NPEs who: (1) are ex ante more competitive for promotion, (2) compete in open tournaments with...
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作者：De Simone, Lisa; Olbert, Marcel
作者单位：University of Texas System; University of Texas Austin; University of London; London Business School
摘要：We investigate the effects of mandatory private Country-by-Country Reporting (CbCR) to European tax authorities on multinational firms' capital and labor investments, as well as their organizational structures. We exploit the threshold-based application of this 2016 disclosure rule to conduct difference-in-differences and regression discontinuity tests. We document increases in capital and labor expenditures in Europe, but these effects are more pronounced in countries with preferential tax re...
