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作者：Cowle, Elizabeth N.; Rowe, Stephen P.
作者单位：Colorado State University System; Colorado State University Fort Collins; University of Arkansas System; University of Arkansas Fayetteville
摘要：We examine the reputational impact of an audit office issuing adverse internal control opinions (adverse ICOs). While prior research has examined how clients that receive an adverse ICO respond, we focus on clients that did not receive an adverse ICO. We find that audit offices that issue more adverse ICOs experience lower growth and that this effect is stronger when the adverse ICO is associated with a more visible client or refers to an entity-level control weakness. Finally, we find that cl...
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作者：Marshall, Nathan T.; Skinner, A. Nicole
作者单位：University of Colorado System; University of Colorado Boulder; University System of Georgia; University of Georgia; University System of Georgia; University of Georgia
摘要：While accounting research has extensively examined initial guidance disclosures, the disclosures that managers make when initial forecasts become materially inaccurate have received much less attention. These updates are unique because managers are communicating that their initial forecasts are no longer correct. In this context, we examine how earnings forecast withdrawals affect managers' reporting reputation, relative to earnings revisions and nondisclosure. While managers face immediate ne...
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作者：Bao, Dichu; Kim, Yongtae; Su, Lixin (Nancy)
作者单位：Lingnan University; Santa Clara University; Korea Advanced Institute of Science & Technology (KAIST); Hong Kong Polytechnic University
摘要：The Securities and Exchange Commission (SEC) allows firms to redact information from material contracts by submitting confidential treatment requests if redacted information is not material and would cause competitive harm upon public disclosure. This study examines whether managers use confidential treatment requests to conceal bad news. We show that confidential treatment requests are positively associated with residual short interest, a proxy for managers' private negative information. This...
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作者：Christensen, Hans B.; Maffett, Mark G.; Ranter, Thomas
作者单位：University of Chicago
摘要：We show that a mid-2000s increase in extraterritorial enforcement of the U.S. Foreign Corrupt Practices Act (FCPA), characterized by greater international regulatory cooperation and more frequent use of the FCPA's accounting provisions, has a significant deterrent effect on foreign direct investment in high-corruption-risk countries. The decrease in investment is at least as large for non-U.S. as for U.S. firms, suggesting that widespread extraterritorial enforcement helps to create a level fo...
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作者：Nezlobin, Alexander A.; Sloan, Richard G.; Giedt, Jenny Zha
作者单位：University of London; London School Economics & Political Science; University of Southern California; George Washington University
摘要：A large body of empirical research in accounting investigates the causes and consequences of accruals quality, reaching numerous influential conclusions. Yet little work has been done to systematically evaluate the validity of the underlying measures of accruals quality. We evaluate these measures using three criteria: (1) Is the measure unaffected by the underlying economic determinants of accruals? (2) Does the measure consistently reflect errors in accruals? (3) Does the measure facilitate ...
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作者：Schabus, Mario
作者单位：Michigan State University; Michigan State University's Broad College of Business
摘要：I examine whether directors' superior access to information through their board network improves the accuracy of firms' forecasting. Managers may benefit from well-connected directors (i.e., board centrality) as they may have limited insight into market developments or decision-making processes of other firms beyond knowledge specific to their firm. Employing a sample of U.S.-listed companies, I separately examine the effect of within-firm variation in direct and indirect board connections on ...
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作者：Schwab, Casey M.; Stomberg, Bridget; Williams, Brian M.
作者单位：University of North Texas System; University of North Texas Denton; Indiana University System; IU Kelley School of Business; Indiana University Bloomington
摘要：We use data envelopment analysis (DEA) to develop a measure of effective tax planning that is theoretically aligned with the Scholes-Wolfson paradigm and captures how efficiently firms maximize after-tax returns given their operating, investing, and financing decisions. We then (1) document that the measure is associated with higher after-tax returns to provide assurance DEA achieves its objective in our setting, (2) demonstrate that the measure is incremental to cash ETRs in predicting after-...
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作者：Hong, Bright (Yue)
作者单位：DePaul University
摘要：Deficiencies identified in complex audit tasks suggest room for improvement in audit judgments. I propose that aligning an auditor's focus ( prevention/promotion) and mindset (concrete/abstract) in a compatible way can induce an experience of ``regulatory fit'' that improves judgments compared to ``regulatory non-fit.'' Results are more complex than previously thought. I find that fit versus non-fit improves judgments, but only for auditors who are initially less engaged in the judgment task. ...
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作者：Chen, Chen; Chen, Yangyang; Pittman, Jeffrey A.; Podolski, Edward J.; Veeraraghavan, Madhu
作者单位：Monash University; City University of Hong Kong; Memorial University Newfoundland; Virginia Polytechnic Institute & State University; Deakin University; Manipal Academy of Higher Education (MAHE)
摘要：We examine the role and economic consequences of emotions in shaping the judgment of corporate executives. Analyzing a large sample of U.S. public firms, we find that sunshine-induced good mood leads managers to make upwardly biased earnings forecasts. Importantly, our evidence implies that managers become less susceptible to the sunshine priming effect in unambiguous settings, when their forecasts are subject to stricter external monitoring, and when they have stronger incentives to issue acc...
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作者：Chen, Ruiyuan; El Ghoul, Sadok; Guedhami, Omrane; Wang, He; Yang, Yang
作者单位：West Virginia University; University of Alberta; University of South Carolina System; University of South Carolina Columbia; West Virginia University; Gannon University
摘要：Using a sample of firms from 51 countries and a difference-in-differences approach that exploits corporate governance shocks induced by cross-listing in the U.S., we find that firms tend to engage in less tax avoidance after cross-listing. This effect is more pronounced for firms that experience significant improvements in corporate governance, and for firms from countries with weaker shareholder protection and disclosure requirements. Taken together, the results indicate that cross-listing in...
