-
作者：Shivakumar, Lakshmanan; Urcan, Oktay
作者单位：University of London; London Business School; University of Illinois System; University of Illinois Urbana-Champaign
摘要：We propose two explanations for the previously documented relation between aggregate earnings growth and future inflation: one based on firms changing their investment in response to earnings growth, and the other based on consumers varying their consumption in response to wealth effects of profitability growth. As the supply of goods and services is relatively inelastic in the short run, our arguments imply that changes to near-term demand for investment (consumption) will affect the prices o...
-
作者：Arya, Anil; Mittendorf, Brian; Ramanan, Ram N. V.
作者单位：University System of Ohio; Ohio State University; State University of New York (SUNY) System; Binghamton University, SUNY
摘要：It is well recognized that stock prices provide relevant feedback that can guide future firm decisions. This paper develops a model to examine how accounting disclosures affect the decision-usefulness of such stock market reactions. We demonstrate that information in accounting reports can prove useful because it helps observers better interpret and isolate the decision-relevant information embedded in the ensuing stock price reaction. This leads to natural synergies between accounting reports...
-
作者：Maksymov, Eldar M.; Nelson, Mark W.
-
作者：Bonsall, Samuel B.; Koharki, Kevin; Neamtiu, Monica
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; Washington University (WUSTL); City University of New York (CUNY) System; Baruch College (CUNY)
摘要：This study investigates whether and when differences in the credit rating agencies' methodologies result in differences in rating properties. In particular, this study focuses on differences in information processing constraints between a rating agency that utilizes qualitative analysis and direct access to borrowers' management in its rating process (Standard & Poor's) compared to one that does not (Egan Jones Ratings Company) and how these differences affect rating quality. We find that as i...
-
作者：Koch, Christopher; Salterio, Steven E.
作者单位：Johannes Gutenberg University of Mainz; Queens University - Canada
摘要：This paper examines how auditors' judgments about accounting policies may differ when experiencing different levels of affinity for client management and facing different levels of pressure from client management. The theory of motivated reasoning is employed to analyze the effects of these two factors that should lead individual auditors to adopt as a directional goal the acceptance of client management's aggressive accounting. Accordingly, we predict and find that auditors experiencing great...
-
作者：Kim, Seil; Klein, April
作者单位：City University of New York (CUNY) System; Baruch College (CUNY); New York University; University of Warwick
摘要：In December 1999, the SEC instituted a new listing standard for NYSE and NASDAQ firms. Listed firms were now required to maintain fully independent audit committees with at least three members. In July 2002, the U.S. Congress legislated these standards through the Sarbanes-Oxley Act. Our research question is whether all investors benefited from the 1999 new rule. Using both an event study and a difference-in-differences methodology, we find no evidence of higher market value or better financia...
-
作者：De Simone, Lisa; Klassen, Kenneth J.; Seidman, Jeri K.
作者单位：Stanford University; University of Waterloo; University of Virginia
摘要：Income shifting from high-tax to low-tax jurisdictions is considered a primary method of reducing worldwide tax burdens of multinational firms. Current losses also affect income shifting incentives. We extend prior approaches by explicitly considering unprofitable affiliates and test whether the association between losses and tax incentives for unprofitable affiliates deviates from the negative association observed in profitable affiliates. Results suggest that multinational firms alter the di...
-
作者：Francis, Bill B.; Hunter, Delroy M.; Robinson, Dahlia M.; Robinson, Michael N.; Yuan, Xiaojing
作者单位：Rensselaer Polytechnic Institute; State University System of Florida; University of South Florida; University of Tampa; University of Massachusetts System; University of Massachusetts Lowell
摘要：We examine the response of informed market participants to the informational signal of auditor changes. Using propensity score matching and difference-in-differences research designs, we document that loan spreads increase by 22 percent on bank loans initiated within a year after auditor changes, increasing direct loan costs by approximately $ 6.6 million. We also find a significant increase in upfront and annual fees and the probability of pledging collateral, consistent with an increase in s...
-
作者：Towery, Erin M.
作者单位：University System of Georgia; University of Georgia
摘要：This study exploits the implementation of IRS Schedule UTP to examine how linking tax return disclosures to financial reporting for income taxes affects firms' reporting decisions. Using confidential tax return data and public financial statement data, I find that after imposition of Schedule UTP reporting requirements, firms report lower financial reporting reserves for uncertain income tax positions, but do not claim fewer income tax benefits on their federal tax returns. The reduction in re...
-
作者：Lobo, Gerald J.; Song, Minsup; Stanford, Mary Harris
作者单位：University of Houston System; University of Houston; Sogang University; Texas Christian University
摘要：Despite the increased frequency of analyst forecasts during earnings announcements, empirical evidence on the interaction between the information in the earnings announcement and these forecasts is limited. We examine the implications of reinforcing and contradicting analyst forecast revisions issued during earnings announcements (days 0 and +1) on the market response to unexpected earnings. We classify forecast revisions as reinforcing (contradicting) when the sign of analyst forecast revisio...
