-
作者：Nessa, Michelle L.
作者单位：Michigan State University
摘要：This paper examines whether and to what extent repatriation tax costs constrain U.S. multinational companies' (MNCs) distributions to shareholders. During the 1987-2004 sample period, I find that repatriation tax costs decrease U.S. MNCs' dividend payments, and the economic magnitude of the effect is substantial. I do not find evidence that repatriation tax costs decrease U.S. MNCs' share repurchases, on average. I find cross-sectional variation in the effect of repatriation tax costs on share...
-
作者：Erickson, Devon; Hewitt, Max; Maines, Laureen A.
作者单位：Utah System of Higher Education; Utah State University; University of Arizona; Indiana University System; Indiana University Bloomington
摘要：A fundamental accounting question is whether investors perceive low risk when earnings are smooth relative to the volatility of operating cash flows. We conduct two experiments to examine this question. Absent additional information concerning the likelihood of earnings management, our first experiment finds that investors give managers the benefit of the doubt and perceive low risk when earnings are relatively smooth. Given this finding, our second experiment examines whether additional infor...
-
作者：Bird, Andrew; Karolyi, Stephen A.
作者单位：Carnegie Mellon University
摘要：We implement a regression discontinuity design to examine the effect of institutional ownership on tax avoidance. Positive shocks to institutional ownership around Russell index reconstitutions lead, on average, to significant decreases in effective tax rates (ETRs) and greater use of international tax planning using tax haven subsidiaries. These effects are smaller for firms with initially strong governance and high executive equity compensation, suggesting poor governance as an explanation f...
-
作者：Hsu, Charles; Novoselov, Kirill E.; Wang, Rencheng
作者单位：Hong Kong University of Science & Technology; Shanghai University of Finance & Economics; University of Melbourne
摘要：Overconfident CEOs are more willing to initiate investment projects that require experimentation, yet tend to defer responding to the bad news when the project is not performing as planned. Accounting conservatism accelerates the recognition of the bad news and its dissemination to gatekeepers, making it more likely that the CEO will acknowledge the problem earlier and start searching for solutions. Therefore, firms where both characteristics-CEO overconfidence and accounting conservatism-are ...
-
作者：Maksymov, Eldar M.; Nelson, Mark W.
作者单位：Arizona State University; Arizona State University-Tempe; Cornell University
摘要：We report the results of four experiments investigating the relationship between (1) the quality of an audit, (2) jurors' assessments of the standard of prudent care (SOC) against which audit quality is compared, and (3) jurors' negligence verdicts. Experiment 1 operationalizes audit quality by varying the sample size used in audit testing, and provides evidence that jurors anchor their assessment of SOC on audit quality, producing a competitive mediation'' in which audit quality reduces the p...
-
作者：deHaan, Ed
作者单位：University of Washington; University of Washington Seattle
摘要：Credit ratings on many financial instruments failed to accurately portray default risk before the global financial crisis. I find no decline in the performance of corporate credit ratings during or after the crisis, indicating that the failures of ratings on financial instruments were due to conditions unique to the rating agencies' financial instruments divisions. Rather, the preponderance of tests indicate that corporate credit rating performance improves after the crisis, consistent with th...
-
作者：Harvey, Patrick J.
作者单位：Chinese University of Hong Kong
-
作者：Tang, Tanya; Mo, Phyllis Lai Lan; Chan, K. Hung
作者单位：Brock University; City University of Hong Kong; Hong Kong Shue Yan University; Lingnan University
摘要：Local governments play dual, but conflicting, roles in China's tax system. That is, they are both tax collectors and controlling shareholders of firms subject to tax payments. We investigate how local governments balance their tax collection and tax avoidance incentives. We find that the conflicts between central and local governments arising from the 2002 tax sharing reform have led to more tax avoidance by local government controlled firms, particularly when the local government's ownership ...
-
作者：Barth, Mary E.; Landsman, Wayne R.; Taylor, Daniel J.
作者单位：Stanford University; University of North Carolina; University of North Carolina Chapel Hill; University of Pennsylvania
摘要：This study examines the effect of the Jumpstart Our Business Startups Act (JOBS Act) on information uncertainty in IPO firms. The JOBS Act creates a new category of issuer, the Emerging Growth Company (EGC), and exempts EGCs from several disclosures required for non-EGCs. Our findings are consistent with proprietary cost concerns motivating EGCs to eliminate some of the previously mandatory disclosures, which increases information uncertainty in the IPO market, attracts investors who rely more...
-
作者：Chi, Sabrina S.; Shanthikumar, Devin M.
作者单位：Texas State University System; Texas State University San Marcos; University of California System; University of California Irvine
摘要：We examine the impact of distance on internet search, and the effect of the local bias'' in search on the stock market response around earnings announcements. We find significant local bias in search behavior. Motivated by theories explaining local bias, local information advantage, and familiarity bias, we predict and find that firms with higher local bias in search experience higher bid-ask spreads, lower trading volumes, and lower earnings response coefficients at the time of earnings annou...
