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作者：Chen, Clara Xiaoling; Huang, Xian; Wang, Laura W.
作者单位：University of Illinois System; University of Illinois Urbana-Champaign; Chinese Academy of Sciences; University of Science & Technology of China, CAS
摘要：Creativity-dependent companies often implement failure disclosure programs to encourage employees to publicly disclose failures encountered in exploration activities with a focus on learning. We examine the effects of failure disclosure on employees' exploration performance using an experiment in which participants perform a letter-search task by counting the search letters in each question (i.e., exploitation) or identifying an embedded shortcut that applies to all questions (i.e., exploratio...
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作者：Jiang, Xu; Xiong, Yan
作者单位：Duke University; University of Hong Kong
摘要：We study voluntary cost disclosure by duopoly firms when they can invest in a cost-reduction technology, i.e., when their private cost is endogenously determined. We find that, contrary to most of the literature, firms disclose their endogenous cost information regardless of the type of competition. The underlying mechanisms and welfare implications, however, are different. Under Bertrand competition, cost disclosure helps a firm avoid aggressive investment in cost reduction to coordinate acti...
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作者：Cetin, Furkan M.
作者单位：University of London; London School Economics & Political Science
摘要：I examine how Accounting Standards Codification (ASC) 606 affects R&D alliance formations and innovation in the drug development industry. ASC 606 alters revenue recognition timing and increases disclosure requirements. I document that firms dependent on R&D alliance revenues accelerate revenue recognition and expand revenue-related disclosures following ASC 606 adoption. These concurrent changes reduce information asymmetry, both between firms and between managers and investors, but only when...
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作者：Ertan, Aytekin
作者单位：University of London; London Business School
摘要：This paper examines lending effects of European banks switching to an expected credit loss (ECL) model under IFRS 9. I find evidence that ECL transition deteriorates the credit landscape for SMEs-as risky, opaque, and bank-dependent borrowers. Post-ECL, affected banks reduced SME lending by over 10 percent, and these effects persisted during the most recent downturn during the COVID-19 pandemic. Banks' financial reporting objectives and implementation difficulties seem to explain these finding...
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作者：Blum, Emily S.; Hatfield, Richard C.
作者单位：Texas A&M University System; Texas A&M University College Station; Mays Business School; University of Alabama System; University of Alabama Tuscaloosa
摘要：The audit environment operates using an apprenticeship model, where more experienced auditors are responsible for the training and development of junior auditors. Academic research has investigated this model primarily as a quality control mechanism for the subordinate's work product. In contrast, we investigate what effect the apprenticeship model has on supervising auditors. We theorize that coaching an apprentice activates norms that are accompanied by an ideal audit quality focus. In an ex...
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作者：Ege, Matthew; Nicoletti, Allison; Stuber, Sarah B.
作者单位：Texas A&M University System; Texas A&M University College Station; Mays Business School; University of Pennsylvania
摘要：We examine whether auditor scrutiny over the allowance for loan losses (ALL) is associated with bank lending decisions. Using PCAOB inspection findings over the ALL to capture increases in auditor scrutiny, we find that auditor scrutiny is associated with a larger ALL for homogeneous loans (i.e., residential mortgages and consumer loans) but not for heterogeneous loans (i.e., commercial real estate; commercial and industrial loans). We next find that auditor scrutiny is associated with a shift...
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作者：Fan, Grace Haoqing
作者单位：Singapore Management University
摘要：I examine whether, and through which channels, government pension accounting regulations affect local housing markets and economies. Using both a contiguous border-county approach across multiple states and a single-state study in California, I find that regions exposed to more severe state-level pension underfunding experience lower housing market growth after the introduction of Government Accounting Standards Board (GASB) regulations 67 and 68, which significantly enhance the transparency o...
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作者：Robinson, Scott A.; Skinner, A. Nicole; Wang, Jasmine
作者单位：University of Oregon; University of Colorado System; University of Colorado Boulder; University of Virginia
摘要：We examine how managers' incentives to minimize litigation risk interact with the unique features of environmental information to shape disclosure decisions. We rely on peer firms' lawsuits to generate variation in environmental disclosure litigation risk, consistent with prior research and anecdotal evidence suggesting that firms perceive an increase in environmental disclosure litigation risk after a peer firm is sued for related disclosures. Although we provide mixed evidence around changes...
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作者：Ferracuti, Elia; Vashishtha, Rahul; Wang, Shuyan
作者单位：Duke University; University of Minnesota System; University of Minnesota Twin Cities
摘要：Firms' use of accounting discretion to report a smooth earnings profile is commonly believed to be pervasive. We examine whether smoothing, at least partly, reflects managerial attempts to avert unhealthy pressures from outsiders who cannot fully disentangle the impact of transitory shocks from sustainable trends in value creation. Using variation in firms' ability to hedge foreign currency (forex) exposure through derivatives, we find that firms are less likely to smooth earnings when they ca...
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作者：Williams, Devin
作者单位：University of Oklahoma System; University of Oklahoma - Norman
摘要：Regulators and academics have long explored the implications of audit market competition on audit pricing and quality, primarily focusing on large audit firms. Despite a presumption of competition among smaller accounting firms, little evidence exists regarding whether and how competition influences audit pricing and quality among them. Additionally, within this market, prior research typically considers competition only from audit offices already serving public-company clients. This study use...
