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作者：Balsam, Steven; Gu, Yuqi; Mao, Connie X.
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University; Western New England University
摘要：Debt covenant violation alters firm dynamics, providing creditors with the right to demand repayment, and via that right, influence firm actions. We provide evidence consistent with creditors employing that channel to influence CEO compensation. Using regression discontinuity analysis, we show that in the year after a covenant violation, after controlling for other factors, CEO compensation is 8.5 percent lower and the CEO's compensation package contains fewer risk-taking incentives, as the ve...
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作者：Asay, H. Scott; Hales, Jeffrey
作者单位：University of Iowa; University System of Georgia; Georgia Institute of Technology
摘要：We examine how cautionary disclaimers about forward-looking statements affect investor judgments both before making an investment and after having suffered an investment loss. In our first experiment, a cautionary disclaimer appears to effectively communicate to nonprofessional investors that forward-looking statements may not be reliable, but we find little evidence that the disclaimer alters the extent to which forward-looking statements influence nonprofessional investors' valuation judgmen...
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作者：Gunn, Joshua L.; Michas, Paul N.
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh; University of Arizona
摘要：Over the past several decades, the scope of public companies' operations has become increasingly global. This has led to concern over the ability of audit firms to conduct high-quality audits across geographically dispersed foreign operations. We contribute to the growing body of research in this area by investigating the association between audit quality and local audit offices' expertise in conducting multinational audit engagements. We use two complementary measures to proxy for an audit of...
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作者：Liu, Alfred Zhu; Subramanyam, K. R.; Zhang, Jieying; Shi, Charles
作者单位：State University of New York (SUNY) System; University at Albany, SUNY; University of Southern California; University of Texas System; University of Texas Dallas; National University of Singapore
摘要：We investigate whether issuers on negative credit watch manage earnings upward and whether such earnings management favorably influences the watch resolution. We find that rating, industry, and performance matched discretionary accruals reported during negative watch are significantly higher than their respective pre- and post-watch levels, after controlling for accrual reversal. Consistent with its opportunistic nature, we find that accrual management increases with issuers' incentives to avo...
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作者：Kim, Sunyoung; Ng, Jeff
作者单位：Monash University; Chinese University of Hong Kong
摘要：We examine the importance of bonus contract characteristics, specifically, with respect to the relation between EPS-based bonuses and share repurchases. We find that managers are more (less) likely to repurchase shares and spend more (less) on repurchases when as-if EPS just misses (exceeds) the bonus threshold (maximum) EPS level. We find no such relation when as-if EPS is further below the threshold. We find weak evidence that managers of firms with as-if EPS just below the EPS target are mo...
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作者：Bills, Kenneth L.; Lisic, Ling Lei; Seidel, Timothy A.
作者单位：University of Arkansas System; University of Arkansas Fayetteville; Virginia Polytechnic Institute & State University; Brigham Young University
摘要：In this paper, we examine how CEO succession and succession planning affect perceptions of financial reporting risk among stakeholders who are responsible for and oversee firms' financial reporting (e.g., auditors, management, and audit committees). Management succession introduces uncertainty about firms' future operations, financial policies, and potential motivation for earnings management, which we predict elevates the perceived risk of financial reporting improprieties. Consistent with th...
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作者：[Anonymous]
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作者：Beatty, Anne
作者单位：University System of Ohio; Ohio State University
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作者：Baldenius, Tim; Michaeli, Beatrice
作者单位：Columbia University; University of California System; University of California Los Angeles
摘要：We demonstrate a novel link between relationship-specific investments and risk in a setting where division managers operate under moral hazard and collaborate on joint projects. Specific investments increase efficiency at the margin. This expands the scale of operations and thereby adds to the compensation risk borne by the managers. Accounting for this investment/risk link overturns key findings from prior incomplete contracting studies. We find that if the investing manager has full bargaini...
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作者：Ma, Mark (Shuai)
作者单位：American University
摘要：Based on the theoretical framework of Lambert, Leuz, and Verrecchia (2007), I predict that higher earnings quality of economically related public firms reduces a firm's systematic market risk. Using alternative sets of economically related firms, this study provides significant evidence consistent with my prediction. Specifically, a conditional CAPM regression shows that not only a firm's earnings quality, but also the earnings quality of related public firms lowers the loading of firm excess ...
