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作者：Nessa, Michelle; Schwab, Casey M.; Stomberg, Bridget; Towery, Erin M.
作者单位：Michigan State University; Indiana University System; Indiana University Bloomington; University System of Georgia; University of Georgia
摘要：This study investigates how Internal Revenue Service resources affect the IRS audit process for publicly traded corporations. Using confidential IRS audit data, we examine the effect of IRS resources on the incidence and magnitude of proposed deficiencies and settlement outcomes. We find that IRS resources are positively associated with both the likelihood and magnitude of proposed deficiencies, but negatively associated with the proportion of proposed deficiencies collected. These results are...
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作者：Dodgson, Mary Kate; Agoglia, Christopher P.; Bennett, G. Bradley; Cohen, Jeffrey R.
作者单位：Northeastern University; University of Massachusetts System; University of Massachusetts Amherst; Boston College
摘要：While current audit standards explicitly state engagement partner tenure requirements, firms have flexibility in managing the rotation process. We conduct semi-structured interviews with 20 U.S. audit firm partners who share their experiences on topics including how they identify appropriate candidate partners and what efforts they undertake to manage relationships with clients post-rotation. We investigate firms' motivation to manage the auditor-client relationship through the lens of Social ...
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作者：Ma, Matthew; Pan, Jing; Stubben, Stephen R.
作者单位：Southern Methodist University; Utah System of Higher Education; University of Utah
摘要：This study documents the existence of local employment preferences for corporate executives and examines how the compensation of executives' local peers affects their own performance, risk-taking decisions, and financial reporting decisions. We find that external hires of new CEOs (CFOs) are five (eight) times more likely to be from local firms than non-local firms. We also find that local tournament incentives-as proxied by the pay gap between an executive and higher-paid executives in the ar...
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作者：Driskill, Matthew; Kirk, Marcus P.; Tucker, Jennifer Wu
作者单位：California State University System; California State University Fullerton; State University System of Florida; University of Florida
摘要：We examine whether financial analysts are subject to limited attention. We find that when analysts have another firm in their coverage portfolio announcing earnings on the same day as the sample firm (a concurrent announcement''), they are less likely to issue timely earnings forecasts for the sample firm's subsequent quarter than analysts without a concurrent announcement. Among the analysts who issue timely earnings forecasts, the thoroughness of their work decreases as their number of concu...
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作者：Shroff, Nemit
作者单位：Massachusetts Institute of Technology (MIT)
摘要：This paper examines the effect of the Public Company Accounting Oversight Board (PCAOB) international inspection program on companies' financing and investing decisions. Difference-in-differences regression estimates suggest that companies respond to their auditor receiving a deficiency-free'' inspection report by issuing additional external capital amounting to 1.4 percent of assets and increasing investment by 0.5 percent of assets. These effects are larger for (1) financially constrained co...
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作者：Ahn, Jaehan; Hoitash, Rani; Hoitash, Udi
作者单位：Northeastern University; Bentley University
摘要：PCAOB inspections repeatedly indicate deficiencies in audits of fair-value (FV) estimates, prompting regulators to improve the related auditing standards. We predict that auditor task-specific FV expertise, gained from work experience during the audit of FV measurements, can contribute to higher audit quality. Utilizing FV-related restatements and comment letters, we find that expertise in auditing Level 3 FV estimates at the office level is associated with greater FV audit quality. Level 2 FV...
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作者：Austin, Chelsea Rae; Bobek, Donna D.; LaMothe, Ethan G.
作者单位：University of South Carolina System; University of South Carolina Columbia; State University System of Florida; University of Central Florida
摘要：Based on prospect theory's value function, we predict how reference points adapt to influence individuals' tax evasion choices during and after experiencing temporary tax changes. Results from a multi-round experiment indicate reactions to temporary changes depend jointly on the direction of the change and expectations. Specifically, individuals experiencing a tax increase evade more while the increase is in effect. More interestingly, knowing, versus not knowing, a tax decrease is temporary p...
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作者：Cho, Young Jun; Kim, Yongtae; Zang, Yoonseok
作者单位：Singapore Management University; Santa Clara University; Korea Advanced Institute of Science & Technology (KAIST)
摘要：We examine the relation between information externalities along the supply chain and voluntary disclosure. Information transfers from a major customer's earnings announcement (EA) can substitute for its supplier's disclosure. Conversely, if the customer's EA increases uncertainties regarding the supplier's future prospects, it can increase the demand for disclosure. After controlling for information incorporated in supplier returns, we find that the supplier is more likely to issue earnings gu...
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作者：Bauer, Tim D.; Bucaro, Anthony C.; Estep, Cassandra
作者单位：University of Waterloo; University System of Ohio; Case Western Reserve University; Emory University
摘要：Regulators are concerned that auditors do not sufficiently identify and report material weaknesses in internal control over financial reporting (ICFR). However, psychological licensing theory suggests reporting material weaknesses could have unintended consequences for acceptance of aggressive client financial reporting. In an experiment, we predict and find auditors accept more aggressive client reporting after they report a material weakness in ICFR than after they report no material weaknes...
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作者：Choi, Jongwoon (Willie); Hecht, Gary; Tafkov, Ivo D.; Towry, Kristy L.
作者单位：University of Wisconsin System; University of Wisconsin Madison; University of Illinois System; University of Illinois Urbana-Champaign; University System of Georgia; Georgia State University; Emory University
摘要：Performance measure noise can be a critical barrier to employees' learning. Using an experiment, we examine whether the effects of performance measure noise on employees' learning depends on the type of learning in which employees engage: experiential versus vicarious. We predict and find performance measure noise has a more deleterious effect on learning when such learning occurs experientially rather than vicariously. Specifically, we find experiential learners demonstrate less learning as p...
