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New product announcements, innovation disclosure, and future firm performance Review of Accounting Studies (IF 4.011) Pub Date : 2024-02-15 Jenny Chu, Yuan He, Kai Wai Hui, Reuven Lehavy
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The spillover effect of SEC comment letters through audit firms Review of Accounting Studies (IF 4.011) Pub Date : 2024-02-13
Abstract This study examines whether auditors serve as a conduit for disseminating Securities and Exchange Commission (SEC) views on reporting and disclosure matters as the result of being privy to clients’ SEC comment letters. This examination is important because auditors’ involvement in and private access to clients’ comment letters can enhance the timeliness of dissemination and constrain reporting
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Inventory planning and tax incentives for charitable giving Review of Accounting Studies (IF 4.011) Pub Date : 2024-02-01
Abstract Many of America’s top corporate donors share a common feature: the bulk of their giving is in the form of in-kind products, not cash. This phenomenon is not a coincidence but rather closely tied to the tax code creating such a preference due to an enhanced deduction for inventory donations. We examine a model of inventory choice under uncertainty and demonstrate that enhanced tax deductions
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The role of equity underwriters in shaping corporate disclosure Review of Accounting Studies (IF 4.011) Pub Date : 2024-01-24
Abstract We find that the exogenous shock of the collapse of Lehman Brothers leads to significant increases in the disclosure of management earnings forecasts and voluntary 8-K items by equity underwriting clients of Lehman relative to clients of other underwriters of similar status. The increases in disclosure are more pronounced among Lehman clients with stronger underwriting relationships with Lehman
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Customers’ response to firms’ disclosure of social stances: evidence from voting reform laws Review of Accounting Studies (IF 4.011) Pub Date : 2024-01-24 Hengda Jin, Kenneth Merkley, Anish Sharma, Karen Ton
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Identical ratios: a red flag of ratio management Review of Accounting Studies (IF 4.011) Pub Date : 2024-01-23 Qianhua Ling, Andrea Alston Roberts
This paper identifies a helpful red flag stakeholders can use to detect whether a nonprofit has managed its financial information. This red flag is reporting an identical program ratio—that is, the nonprofit organization reports the exact same ratio in multiple years—while reporting a large change in total spending. We find nonprofits are more likely to report identical program ratios when resource
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Earnings per share targets and CEO incentives Review of Accounting Studies (IF 4.011) Pub Date : 2024-01-22 Christopher Armstrong, Jacky Chau, Christopher D. Ittner, Jason J. Xiao
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Foreign media slant, foreign investors, and informativeness of earnings Review of Accounting Studies (IF 4.011) Pub Date : 2024-01-13 Albert Tsang, Kun Tracy Wang, Nathan Zhenghang Zhu
Although foreign media outlets comprise a substantial proportion of the media covering U.S. financial markets, their characteristics and role in these financial markets have not been explored. Using a novel, manually collected dataset covering 1,126 media outlets from 48 countries, we explore whether there are systematic differences in the reporting properties of foreign and domestic media when they
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Differences in the value relevance of identifiable intangible assets Review of Accounting Studies (IF 4.011) Pub Date : 2023-11-23 Zachary King, Thomas J. Linsmeier, Daniel D. Wangerin
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The media response to a loss of analyst coverage Review of Accounting Studies (IF 4.011) Pub Date : 2023-11-13 Nicholas Guest, Jaewoo Kim
This paper examines how the media responds to the loss of analyst coverage resulting from brokerage mergers and closures. We find some evidence of an overall decrease in media coverage of affected firms, consistent with analysts serving as a useful information source for the media. However, media coverage during the earnings announcement significantly increases, consistent with the media switching
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Predictable EPS growth and the performance of value investing Review of Accounting Studies (IF 4.011) Pub Date : 2023-11-09 Richard G. Sloan, Annika Yu Wang
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IPO price formation and analyst coverage Review of Accounting Studies (IF 4.011) Pub Date : 2023-11-06 Joseph Weber, Michael Willenborg, Biyu Wu, Yanhua Sunny Yang
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Human bias in the oversight of firms: evidence from workplace safety violations Review of Accounting Studies (IF 4.011) Pub Date : 2023-11-03 Jonas Heese, Gerardo Pérez-Cavazos, Andreya Pérez-Silva
We study the effects of mood as a source of human bias on regulators’ oversight and enforcement decisions. We use weather at facilities at the time of an OSHA inspection to proxy for the OSHA compliance officers’ mood. We find that, during periods of good mood due to sunny weather, the number of workplace safety violations and dollar penalties assessed by the officer decrease. These effects are more
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No news is bad news: local news intensity and firms’ information environments Review of Accounting Studies (IF 4.011) Pub Date : 2023-10-16 Kristian D. Allee, Ryan Cating, Caleb Rawson
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Are earnings better than cash flows at predicting future cash flows? Evidence from apples-to-apples comparisons Review of Accounting Studies (IF 4.011) Pub Date : 2023-10-09 Ryan J. Casey, George W. Ruch
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Properties of accounting performance measures used in compensation contracts Review of Accounting Studies (IF 4.011) Pub Date : 2023-10-07 Oktay Urcan, Hayoung Yoon
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When do firms deliver on the jobs they promise in return for state aid? Review of Accounting Studies (IF 4.011) Pub Date : 2023-10-03 Qingkai Dong, Aneesh Raghunandan, Shivaram Rajgopal
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Does audit firm hiring of former PCAOB personnel improve audit quality? Review of Accounting Studies (IF 4.011) Pub Date : 2023-09-23 Jagan Krishnan, Jayanthi Krishnan, Steven A. Maex
We examine whether employees of the Public Company Accounting Oversight Board (PCAOB) that are hired by large audit firms are associated with subsequent higher audit quality at these firms. Employees at the PCAOB acquire expertise related to the industry they regulate, the audit industry. We predict that this expertise, which we label “regulatory audit quality expertise,” would improve audit quality
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Regulatory spillover effects in OTC markets Review of Accounting Studies (IF 4.011) Pub Date : 2023-09-13 Richard A. Cazier, Jianning Huang, Fuzhao Zhou
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Analyst ability and research effort: non-EPS forecast provision as a research quality signal Review of Accounting Studies (IF 4.011) Pub Date : 2023-09-11 Peter F. Pope, Tong Wang
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Corporate stakeholders and CEO-worker pay gap: evidence from CEO pay ratio disclosure Review of Accounting Studies (IF 4.011) Pub Date : 2023-08-29 Mei Cheng, Yuan Zhang
Based on the recent SEC-mandated disclosures of CEO-worker pay ratios, we find that firms significantly decrease (increase) their CEO-worker pay ratios when their prior pay ratios are high (low) relative to peers. More importantly, the decrease in pay ratio among high pay ratio firms is significantly more pronounced with stronger stakeholder influences, proxied by employees with greater bargaining
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All losses are not alike: Real versus accounting-driven reported losses Review of Accounting Studies (IF 4.011) Pub Date : 2023-08-29 Feng Gu, Baruch Lev, Chenqi Zhu
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Debiasing earnings persistence estimates Review of Accounting Studies (IF 4.011) Pub Date : 2023-08-29 Brian Rountree, Konduru Sivaramakrishnan, Yanyan Wang, Lisheng Yu
This study provides a theoretical framework to help isolate persistence estimates of earnings innovations from the effects of accounting measurements. We show that estimates of persistence are biased downward when using reported earnings because of the presence of accrual estimation errors. The greater the errors, the greater the downward bias, which explains the empirically observed positive association
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Do firms follow the SEC’s confidential treatment protocols? Evidence from credit agreements Review of Accounting Studies (IF 4.011) Pub Date : 2023-08-26 Daniel Saavedra
I examine whether firms follow the Securities and Exchange Commission’s confidential treatment protocols when redacting potentially material information from their credit agreements. My findings suggest that most firms may not comply with SEC directives: they withhold potentially material information without following the SEC’s confidential treatment protocols and without making interested parties
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Real earnings management in the motion picture industry: strengthening the inferences from academic research Review of Accounting Studies (IF 4.011) Pub Date : 2023-08-22 George Foster
The Gong, Young, and Zhou (GYZ) (Gong et al. 2023) paper examines potential earnings management by movie studio companies. Using a large sample of 3094 US-produced English-language movies released between 1997 and 2019, they find that movie studio companies, when faced with a below expected US box office revenue yield from their movies in a specific quarter, move up the release dates of movies with
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Can executives predict how firm news maps to stock price? A field study at the onset of COVID-19 Review of Accounting Studies (IF 4.011) Pub Date : 2023-08-19 Darren Bernard, Elsa Maria Juliani, Alastair Lawrence
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Is tax return information useful to equity investors? Review of Accounting Studies (IF 4.011) Pub Date : 2023-08-12 Paul Demeré
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Selection bias in audit firm tenure research Review of Accounting Studies (IF 4.011) Pub Date : 2023-08-10 Ying Zhou, David P. Weber, Ce Wen
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Is hiring fast a good sign? The informativeness of job vacancy duration for future firm profitability Review of Accounting Studies (IF 4.011) Pub Date : 2023-08-09 Ciao-Wei Chen, Laura Yue Li
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Trivialization of the bottom line and losing relevance of losses Review of Accounting Studies (IF 4.011) Pub Date : 2023-08-08 Anup Srivastava
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Dividends, trust, and firm value Review of Accounting Studies (IF 4.011) Pub Date : 2023-08-03 Martin Kapons, Peter Kelly, Robert Stoumbos, Rafael Zambrana
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The effect of retrospective versus modified retrospective application of accounting changes on financial statement usefulness Review of Accounting Studies (IF 4.011) Pub Date : 2023-08-01 Jing Wang, Michael Welker
Accounting changes, whether voluntarily undertaken by firms or mandated by standard setters, are generally implemented using one of three application methods—retrospective, modified retrospective, or prospective. This study sheds light on whether the adoption method applied to accounting changes impacts financial statement usefulness. Because individual prior year results that are presented for comparative
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The impact of foreign laws on U.S. firms: evidence from the U.K. Bribery Act Review of Accounting Studies (IF 4.011) Pub Date : 2023-07-28 Amanda Sanseverino
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The importance of individual-pair lending relationships Review of Accounting Studies (IF 4.011) Pub Date : 2023-07-26 Omri Even-Tov, Xinlei Li, Hui Wang, Christopher Williams
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Bankruptcy in groups Review of Accounting Studies (IF 4.011) Pub Date : 2023-07-26 William H. Beaver, Stefano Cascino, Maria Correia, Maureen F. McNichols
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Economic effects of litigation risk on corporate disclosure and innovation Review of Accounting Studies (IF 4.011) Pub Date : 2023-07-24 Stefan F. Schantl, Alfred Wagenhofer
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Real earnings management and the strategic release of new products: evidence from the motion picture industry Review of Accounting Studies (IF 4.011) Pub Date : 2023-07-18 James Jianxin Gong, S. Mark Young, Aner Zhou
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Investor protection, aggregate changes in profit margins and forecasts of growth in GDP: international evidence Review of Accounting Studies (IF 4.011) Pub Date : 2023-07-15 Neil Fargher, Lijuan Zhang
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Activist directors: determinants and consequences Review of Accounting Studies (IF 4.011) Pub Date : 2023-07-12 Ian D. Gow, Sa-Pyung Sean Shin, Suraj Srinivasan
This paper examines determinants and consequences of hedge fund activism, focusing on activist directors, i.e., directors appointed in response to activist demands. Using a sample of 3,259 activism events from 2004 to 2016, we identify 1,623 activist directors. Compared to other newly appointed directors, these activist directors tend to be younger, more likely to have finance and accounting skills
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The explanatory power of explanatory variables Review of Accounting Studies (IF 4.011) Pub Date : 2023-07-01 Erik Johannesson, James A. Ohlson, Sophia Weihuan Zhai
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Startups’ demand for accounting expertise: evidence from a randomized field experiment Review of Accounting Studies (IF 4.011) Pub Date : 2023-06-30 Ofir Gefen, David Reeb, Johan Sulaeman
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Asymmetric motivated reasoning in investor judgment Review of Accounting Studies (IF 4.011) Pub Date : 2023-06-23 W. Brooke Elliott, Jessen L. Hobson, Ben W. Van Landuyt, Brian J. White
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Round number reference points and irregular patterns in reported gross margins Review of Accounting Studies (IF 4.011) Pub Date : 2023-06-21 Matthew Cedergren, Valerie Li
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Which multiples matter in M &A? An overview Review of Accounting Studies (IF 4.011) Pub Date : 2023-06-21 Matthew Shaffer
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Green dies in darkness? environmental externalities of newspaper closures Review of Accounting Studies (IF 4.011) Pub Date : 2023-06-19 John Xuefeng Jiang, Jing Kong
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Outside directors’ insider trading around board meetings Review of Accounting Studies (IF 4.011) Pub Date : 2023-06-10 Seil Kim, Seungjoon Oh
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Classification shifting using income-decreasing special items: measurement and valuation issues Review of Accounting Studies (IF 4.011) Pub Date : 2023-06-09 Ahmed M. Abdalla, Colin D. B. Clubb
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Computing corporate bond returns: a word (or two) of caution Review of Accounting Studies (IF 4.011) Pub Date : 2023-06-06 Martina Andreani, Diogo Palhares, Scott Richardson
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To tell or not to tell: the incentive effects of disclosing employer assessments Review of Accounting Studies (IF 4.011) Pub Date : 2023-06-02 Alexandra Lilge, Abhishek Ramchandani
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Tax avoidance and firm value: does qualitative disclosure in the tax footnote matter? Review of Accounting Studies (IF 4.011) Pub Date : 2023-06-01 Le Luo, Mark Shuai Ma, Thomas C. Omer, Hong Xie
This study examines whether qualitative disclosure in tax footnotes affects the market valuation of tax avoidance activities. We predict that more disclosures in tax footnotes mitigate investors’ concerns over the agency risk of managers engaging in potentially illegal tax avoidance and improve the transparency of firm performance, thus increasing firm valuation. Consistent with the prediction, we
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Does hedge fund activism improve investment efficiency? Review of Accounting Studies (IF 4.011) Pub Date : 2023-05-30 Saikat Sovan Deb, Huu Nhan Duong, Amanjot Singh, Harminder Singh
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The productivity effect of digital financial reporting Review of Accounting Studies (IF 4.011) Pub Date : 2023-05-27 Zheng Liu, Ning Zhang
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Market for corporate control and demand for auditing: evidence from international M&A laws Review of Accounting Studies (IF 4.011) Pub Date : 2023-05-16 Ahrum Choi, Jeong-Bon Kim, Jay Junghun Lee, Jong Chool Park
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How do financial executives respond to the use of artificial intelligence in financial reporting and auditing? Review of Accounting Studies (IF 4.011) Pub Date : 2023-05-01 Cassandra Estep, Emily E. Griffith, Nikki L. MacKenzie
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Accounting-based expected loss given default and debt contract design Review of Accounting Studies (IF 4.011) Pub Date : 2023-04-28 Dan Amiram, Edward Owens
We investigate an unexplored channel—loss given default (LGD)—through which accounting information can shape the design of debt contracts. Using a sample of defaulted bonds, we find that borrower accounting information available at contract initiation possesses significant power for predicting realized LGD at the subsequent default date. We then use this model to construct an accounting-based measure
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The initial effect of U.S. tax reform on foreign acquisitions Review of Accounting Studies (IF 4.011) Pub Date : 2023-04-17 Harald J. Amberger, Leslie Robinson
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Creating visibility: voluntary disclosure by private firms pursuing an initial public offering Review of Accounting Studies (IF 4.011) Pub Date : 2023-04-10 Michael Dambra, Bryce Schonberger, Charles Wasley
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Managers’ use of humor on public earnings conference calls Review of Accounting Studies (IF 4.011) Pub Date : 2023-04-03 Andrew C. Call, Rachel W. Flam, Joshua A. Lee, Nathan Y. Sharp
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Do sophisticated investors follow fundamental analysis strategies? Evidence from hedge funds and mutual funds Review of Accounting Studies (IF 4.011) Pub Date : 2023-03-31 Feifei Wang, Xuemin Sterling Yan, Lingling Zheng
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Myopic capital market concerns and investment incentives in business alliances Review of Accounting Studies (IF 4.011) Pub Date : 2023-03-29 Hui Chen, Thomas Pfeiffer