-
作者：Collins, Daniel W.; Pungaliya, Raunaq S.; Vijh, Anand M.
作者单位：University of Iowa; Sungkyunkwan University (SKKU)
摘要：Commonly used Jones-type discretionary accrual models applied in quarterly settings do not adequately control for nondiscretionary accruals that naturally occur due to firm growth. We show that the relation between quarterly accruals and backward-looking sales growth (measured over a rolling four-quarter window) and forward-looking firm growth (market-to-book ratio) is non-linear. Failure to control for the effects of firm growth and performance on innate accruals leads to excessive Type I err...
-
作者：He, Xianjie; Pittman, Jeffrey A.; Rui, Oliver M.; Wu, Donghui
作者单位：Shanghai University of Finance & Economics; Memorial University Newfoundland; China Europe International Business School; Chinese University of Hong Kong
摘要：We examine whether social ties between engagement auditors and audit committee members shape audit outcomes. Although these social ties can facilitate information transfer and help auditors alleviate management pressure to waive correction of detected misstatements, close interpersonal relations can undermine auditors' monitoring of the financial reporting process. We measure social ties by alma mater connections, professor-student bonding, and employment affiliation, and audit quality by the ...
-
作者：Banker, Rajiv D.; Basu, Sudipta; Byzalov, Dmitri
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University
摘要：Accountants examine multiple indicators when assessing whether individual assets are impaired. Different indicators predict cash flows over varying time horizons, and their importance varies with how far into the future individual assets are expected to generate cash flows. We predict that earnings exhibits asymmetric timeliness with respect to multiple indicators, including stock return, sales change, and operating cash flow change, which differentially explain write-downs of current assets, ...
-
作者：Lawrence, Alastair; Ryans, James P.; Sun, Estelle Y.
作者单位：University of California System; University of California Berkeley; University of London; London Business School; Boston University
摘要：We use daily page views of analyst estimates, ratings, and target prices on Yahoo Finance to understand when users seek sell-side analyst research. Demand for this information is most pronounced on days with earnings announcements, management guidance, and All-Star analyst reports. Surprisingly, demand does not increase at Form 10-K and Form 10-Q filings. While the overall demand for analyst estimates is 19.9 percent less than for analyst ratings and target prices, on earnings announcement and...
-
作者：Nallareddy, Suresh; Ogneva, Maria
作者单位：Duke University; University of Southern California
摘要：Earnings growth dispersion contains information about trends in labor reallocation, unemployment change, and, ultimately, aggregate output. We find that initial macroeconomic estimates released by government statistical agencies do not fully incorporate this information. As a consequence, earnings growth dispersion predicts future restatements in nominal and real GDP growth (and unemployment change) both in the in-sample and out-of-sample tests. Further, when we adjust GDP estimates using the ...
-
作者：Michaeli, Beatrice
作者单位：University of California System; University of California Los Angeles
摘要：This paper develops a Bayesian persuasion model that examines a manager's incentives to gather information when the manager can disseminate this information selectively to interested parties (users'') and when the objectives of the manager and the users are not perfectly aligned. The model predicts that if the manager can choose the subset of users to receive the information, then the manager may gather more precise information. The paper identifies conditions under which a regime that allows ...
-
作者：Laurion, Henry; Lawrence, Alastair; Ryans, James P.
作者单位：University of California System; University of California Berkeley; University of London; London Business School
摘要：We investigate the effects of audit partner rotation among U.S. publicly listed firms, utilizing the fact that audit partners are periodically copied by name in public correspondence between issuers and the Securities and Exchange Commission. Relative to non-rotation firms, we find no evidence of a change in the frequency of misstatements following the partner rotation; however, there is an increase in the frequency of restatement discoveries and announcements. We also find an increase in defe...
-
作者：Reid, Lauren C.; Carcello, Joseph V.
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh; University of Tennessee System; University of Tennessee Knoxville
摘要：The PCAOB recently considered implementing mandatory audit firm rotation in hopes of better aligning auditors' interests with investors' interests, suggesting that the PCAOB views long auditor tenure as problematic. However, the accounting profession argues that long tenure actually improves audit quality. This study provides insight into investors' views by evaluating the market's reaction to events related to the potential adoption of rotation that occurred between 2011 and 2013. The results...
-
作者：Asay, H. Scott; Elliott, W. Brooke; Rennekamp, Kristina
作者单位：University of Iowa; University of Illinois System; University of Illinois Urbana-Champaign; Cornell University
摘要：Prior literature suggests that investors react less strongly to information in less readable disclosures. We extend this literature by considering how disclosure readability affects the sensitivity of investors' valuation judgments to the information contained in outside (i.e., non-firm) sources of information. Using an experiment, we present investors with a disclosure containing mixed news about the valence of firm performance, and this disclosure varies in readability. We find that investor...
-
作者：Bae, Gil Soo; Choi, Seung Uk; Dhaliwal, Dan S.; Lamoreaux, Phillip T.
作者单位：Korea University; University of Arizona; Arizona State University; Arizona State University-Tempe
摘要：This study examines the relation between auditors and their clients' investment efficiency. We hypothesize and find that auditor characteristics that proxy for an auditor's knowledge and resources are associated with higher client investment efficiency, after controlling for the auditor's effect on financial reporting quality. This result is consistent with auditors providing informational advantages to their clients in a generalized investment setting. We find that this auditor effect is more...
