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作者：Chen, Jing; Dou, Yiwei; Zou, Youli
作者单位：Stevens Institute of Technology; New York University; University of Connecticut
摘要：Effective in 2009, SFAS 161 requires enhanced disclosures about derivative use and hedging activities. We test for changes to the information environment of firms whose disclosure policy is unaffected by this standard directly. Using a sample of non-users of derivatives, we find an increase in stock liquidity after their critical customers expand derivative disclosures under SFAS 161. The effect persists for one year and becomes insignificant in subsequent years as the firms dial back their vo...
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作者：Mehta, Mihir N.; Reeb, David M.; Zhao, Wanli
作者单位：University of Michigan System; University of Michigan; National University of Singapore; Bocconi University
摘要：We investigate whether corporate insiders attempt to circumvent insider trading restrictions by using their private information to facilitate trading in economically linked firms, a phenomenon we call shadow trading.'' Using measures of informed trading to proxy for shadow trading, we find increased levels of informed trading among business partners and competitors before a firm releases private information. To rule out alternative explanations, we examine two shocks to insiders' incentives to...
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作者：Christensen, Brant E.; Lundstrom, Nathan G.; Newton, Nathan J.
作者单位：University of Oklahoma System; University of Oklahoma - Norman; University of Kansas; State University System of Florida; Florida State University
摘要：We examine whether PCAOB inspection reports increase auditors' litigation risk. We find that inspection reports with audit deficiencies are positively associated with the number of lawsuits subsequently filed against the inspected auditor. These results are strongest when client-level lawsuit-triggering events have already occurred and when PCAOB inspection content is arguably more persuasive. Importantly, these results pertain exclusively to triennially inspected audit firms for which the set...
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作者：Kubic, Matthew
作者单位：University of Texas System; University of Texas Austin
摘要：The ability to detect misreporting is an important aspect of financial reporting regulation. I derive a measure of SEC error detection rates using information from comment letter reviews. Conditional on the SEC issuing a comment letter, I find that the review team detects an error resulting in a restatement in 4.6 percent of cases, while firms eventually restate financial reports for 13.6 percent of periods under review. My measure of SEC error detection rates is the ratio of reviews that dete...
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作者：Li, Oliver Zhen; Liu, Hang; Ni, Chenkai
作者单位：Shanghai Lixin University of Accounting & Finance; National University of Singapore; Fudan University
摘要：We examine whether dividend tax induced lock-in reduces idiosyncratic volatility. The 2012 Dividend Tax Reform in China tied individual investors' dividend tax to the length of their shareholding period, with short-term individual investors entering into higher tax brackets. We find that high dividend firms experience a reduction in idiosyncratic volatility, relative to low dividend firms, after the reform. The effect is more pronounced when high dividend firms have more retail investors and e...
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作者：Eastman, Evan M.; Eckles, David L.; Van Buskirk, Andrew
作者单位：State University System of Florida; Florida State University; University System of Georgia; University of Georgia; University System of Ohio; Ohio State University
摘要：The Patient Protection and Affordable Care Act (ACA) requires that insurers spend a minimum amount of their premium revenue on policyholder benefits. The Act specifies enforcement via a combination of insurer self-reporting, government examinations, and payment of policyholder rebates in cases where insurers fail to meet the required spending amount. We find that insurers' reported estimates are consistently overstated in situations in which more accurate estimates would have triggered rebate ...
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作者：Kimbrough, Michael D.; Lee, Hanna; Zheng, Yue
作者单位：University System of Maryland; University of Maryland College Park; Hong Kong University of Science & Technology
摘要：We examine whether management forecast errors (MFEs), which are traditionally interpreted as backward-looking indicators of how well forecasts preempted earnings announcements, also operate as forward-looking measures that aid with predicting future earnings. This possibility arises if an MFE represents unrealized revenues or expenses a manager originally anticipated to occur in the forecast period but that ultimately occur in subsequent periods. Consistent with this possibility, we document t...
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作者：Frankel, Richard M.; Kalay, Alon; Sadka, Gil; Zou, Yuan
作者单位：Washington University (WUSTL); Michigan State University; Michigan State University's Broad College of Business; University of Texas System; University of Texas Dallas; Harvard University
摘要：Prior literature presents various perspectives on the role of financial reporting. One view is that mandatory periodic reporting disciplines managers and encourages timely voluntary disclosure. We examine this confirmation hypothesisusing the shock to financial reporting quality experienced by Arthur Andersen clients forced to switch auditors. Consistent with the confirmation hypothesis, we find that former Andersen clients increase disclosure after they change auditors. They increase forecast...
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作者：Bochkay, Khrystyna; Joos, Peter R.
作者单位：University of Miami; INSEAD Business School
摘要：Risk forecasting is crucial for informed investment decision-making. Moreover, the salience of investment risk increases during economically uncertain times. In this paper, we study how sell-side analysts form expectations of firm risk, under different macroeconomic conditions (low versus high uncertainty) and by distinguishing between quantitative and qualitative information inputs. We find that analysts jointly consider quantitative and qualitative information, but that their reliance on qua...
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作者：Lee, Charles M. C.; Watts, Edward M.
作者单位：Stanford University
摘要：This study examines how an increase in tick size affects algorithmic trading (AT), fundamental information acquisition (FIA), and the price discovery process around earnings announcements (EAs). Leveraging the SEC's randomized Tick Size Pilot experiment, we show that a tick size increase results in a decline in AT and a sharp drop in absolute cumulative abnormal returns and volume around EAs. More importantly, we find increased FIA in the preannouncement period. Specifically, we show: (1) trea...
