Contemporary Accounting Research最新文献

CAR Ad Hoc Reviewers 2024 / RCC Réviseurs ad hoc 2024

IF 3.2 3区管理学

Contemporary Accounting Research Pub Date : 2025-03-18 DOI: 10.1111/1911-3846.13029

引用次数: 0

Endogeneity and the economic consequences of tax avoidance

IF 3.2 3区管理学

Contemporary Accounting Research Pub Date : 2025-01-27 DOI: 10.1111/1911-3846.13017

Scott D. Dyreng, Robert W. Hills, Christina M. Lewellen, Bradley P. Lindsey

{"title":"Endogeneity and the economic consequences of tax avoidance","authors":"Scott D. Dyreng, Robert W. Hills, Christina M. Lewellen, Bradley P. Lindsey","doi":"10.1111/1911-3846.13017","DOIUrl":"https://doi.org/10.1111/1911-3846.13017","url":null,"abstract":"Academic research investigating the economic consequences of tax avoidance is almost always interested in the consequences of intentional, deliberate actions undertaken to reduce taxes relative to income. Therefore, it is crucial that such research distinguishes between intentional and incidental tax avoidance, since failure to do so can create endogeneity concerns and lead to incomplete and incorrect economic inferences. In this paper, we first develop a framework that conceptually defines and distinguishes between intentional and incidental tax avoidance. We highlight that the endogeneity problem arises because intentional tax avoidance is not directly observable. We consider two approaches to mitigating endogeneity concerns and apply these approaches by reexamining two influential studies that investigate the economic consequences of tax avoidance. We show how controlling for past accounting losses eliminates the effect of tax avoidance on credit spreads (Hasan et al. 2014, Journal of Financial Economics, 113(1), 109–130) and how using an instrumental variables approach changes the sign of the relation between tax sheltering and stock price crash risk (Kim et al., 2011, Journal of Financial Economics, 100(3), 639–662). Overall, our paper punctuates the importance of both (1) conceptually distinguishing between incidental and intentional tax avoidance and (2) econometrically addressing the challenges that arise when empirical differentiation between incidental and intentional tax avoidance is important to the research question.","PeriodicalId":10595,"journal":{"name":"Contemporary Accounting Research","volume":"42 1","pages":"702-730"},"PeriodicalIF":3.2,"publicationDate":"2025-01-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/1911-3846.13017","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143646268","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Talking down the competitors: How do investment banking relationships influence analysts' forecasts?

IF 3.2 3区管理学

Contemporary Accounting Research Pub Date : 2025-01-23 DOI: 10.1111/1911-3846.13018

Fangbo Si, Xiaoxu Yu, Huai Zhang

引用次数: 0

Preventing fraudulent financial reporting with reputational signals of strategic auditors

IF 3.2 3区管理学

Contemporary Accounting Research Pub Date : 2025-01-17 DOI: 10.1111/1911-3846.13012

Chezham (Chez) L. Sealy, Chad A. Simon

{"title":"Preventing fraudulent financial reporting with reputational signals of strategic auditors","authors":"Chezham (Chez) L. Sealy, Chad A. Simon","doi":"10.1111/1911-3846.13012","DOIUrl":"https://doi.org/10.1111/1911-3846.13012","url":null,"abstract":"Financial reporting fraud continues to cost companies millions of dollars annually and is a major source of concern for regulators, stakeholders, and auditors. While academic research has largely focused on external auditors' fraud detection efforts, we analyze whether auditors can help prevent occurrences of fraud through low-cost reputational signals of higher “strategic reasoning”; strategic reasoning refers to strategies that individuals take in light of the anticipated actions of others (see van der Hoek et al., 2005, A logic for strategic reasoning, AAMAS '05, 157−164). Specifically, we consider the potential impact on manager behavior of signaling whether audit professionals use zero-, first-, and second-order audit approaches. Zero-order audit approaches involve making decisions based mostly on the auditor's incentives, first-order approaches involve decisions based mostly on the client's incentives, and second- or higher-order audit approaches involve decisions based on the client's incentives while recognizing that the client will respond to the auditor's decisions (see Wilks & Zimbelman, 2004, Accounting Horizons, 18(3), 173–184). Using a context-rich experiment in which manager participants have no history of interacting with the auditor, we find that the likelihood of fraud occurring is lower when it is signaled that audit partners and their teams use a first- or second-order strategic audit approach compared to a zero-order approach, due to an increase in the perceived likelihood of the auditor detecting fraud. We also consider whether signaling an auditor's level of strategic reasoning influences the level of effort used to conceal fraud and find an increase in the expected level of fraud effort for managers in the first- and second-order audit conditions.","PeriodicalId":10595,"journal":{"name":"Contemporary Accounting Research","volume":"42 1","pages":"649-672"},"PeriodicalIF":3.2,"publicationDate":"2025-01-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143645676","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Improvements in investment efficiency prior to a mandated accounting change: Evidence from ASC 842

IF 3.2 3区管理学

Contemporary Accounting Research Pub Date : 2025-01-09 DOI: 10.1111/1911-3846.13007

Derek Christensen, Daniel P. Lynch, Clay Partridge

{"title":"Improvements in investment efficiency prior to a mandated accounting change: Evidence from ASC 842","authors":"Derek Christensen, Daniel P. Lynch, Clay Partridge","doi":"10.1111/1911-3846.13007","DOIUrl":"https://doi.org/10.1111/1911-3846.13007","url":null,"abstract":"Prior literature on the relationship between financial reporting and investment efficiency generally overlooks the connection between firms' financial and managerial reporting systems. As a result, it is difficult to determine whether increases in the quality of firms' internal information environments (IIQ) and/or the quality of their external information environments (EIQ) explain improvements in investment efficiency following financial reporting changes. Leveraging the transition window to the new lease standard (Accounting Standards Codification [ASC] 842), we use a difference-in-differences design and find that firms that materially change their internal controls due to ASC 842 (treatment firms) significantly improve their investment efficiency in the final year of the transition window. Multiple falsification tests rule out that contemporaneous improvements in treatment firms' EIQ explain our finding. Additional channel analyses suggest the increases in IIQ for treatment firms predominantly alleviate moral hazard risk between central and divisional managers within the firm, leading to a reduction in empire building. Our findings extend the literature on the relationship between financial reporting and investment efficiency. They also contribute to the literature on the consequences of ASC 842 by answering the FASB's call for research on how ASC 842 affects firms' asset utilizations.","PeriodicalId":10595,"journal":{"name":"Contemporary Accounting Research","volume":"42 1","pages":"615-648"},"PeriodicalIF":3.2,"publicationDate":"2025-01-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143645881","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

The consequences of expanded audit reports for small and risky companies

IF 3.2 3区管理学

Contemporary Accounting Research Pub Date : 2025-01-02 DOI: 10.1111/1911-3846.13011

Elizabeth Gutierrez, Miguel Minutti-Meza, Kay W. Tatum, Maria Vulcheva

{"title":"The consequences of expanded audit reports for small and risky companies","authors":"Elizabeth Gutierrez, Miguel Minutti-Meza, Kay W. Tatum, Maria Vulcheva","doi":"10.1111/1911-3846.13011","DOIUrl":"https://doi.org/10.1111/1911-3846.13011","url":null,"abstract":"The United Kingdom mandated expanded audit reports in two waves, starting in 2013 and 2017, respectively. Prior studies of the first wave, which included large and highly regulated companies, concluded that expanded reports have limited incremental value. We focus on the second wave, which included companies listed on the Alternative Investment Market (AIM). The AIM is characterized by emerging companies that are smaller, riskier, and subject to lighter regulatory requirements and to private monitoring. We examine whether investors and other stakeholders benefit from expanded reports in this setting. We document that AIM companies have shorter expanded reports and fewer key audit matters. Next, we demonstrate that these reports have negligible incremental information value for investors or consequences for the quality and cost of audits. Finally, although we find that some variations in the expanded reports' content are associated with investor reactions to the annual report and with audit fees, variations in external monitoring and company size do not play an incremental role. By focusing on a set of companies with weaker information environments, our findings help to extend the conclusions from prior studies about the limited incremental value of expanded reports.","PeriodicalId":10595,"journal":{"name":"Contemporary Accounting Research","volume":"42 1","pages":"576-614"},"PeriodicalIF":3.2,"publicationDate":"2025-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/1911-3846.13011","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143646155","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Cost-benefit trade-offs in acquirers' goodwill valuations

IF 3.2 3区管理学

Contemporary Accounting Research Pub Date : 2025-01-02 DOI: 10.1111/1911-3846.13010

Lisa Koonce, Sara Toynbee, Brian J. White

引用次数: 0

CEO (in)activism and investor decisions

IF 3.2 3区管理学

Contemporary Accounting Research Pub Date : 2024-12-30 DOI: 10.1111/1911-3846.13004

Michael T. Durney, Joseph A. Johnson, Roshan K. Sinha, Donald Young

{"title":"CEO (in)activism and investor decisions","authors":"Michael T. Durney, Joseph A. Johnson, Roshan K. Sinha, Donald Young","doi":"10.1111/1911-3846.13004","DOIUrl":"https://doi.org/10.1111/1911-3846.13004","url":null,"abstract":"Many CEOs engage in activism by publicly expressing their views on social, environmental, and political issues, while other CEOs refrain from doing so—a behavior we term CEO inactivism. We use two experiments to examine how CEO (in)activism impacts investor decisions. Our results are consistent with our theoretical predictions. When a CEO expresses an activist position that is consistent versus inconsistent with investors' views, investors invest more in the CEO's firm because they perceive the CEO more positively. We also find that CEO inactivism can lead to investment decisions that are as favorable as when the CEO expresses a position consistent with investors' views; our process evidence suggests that this may occur because CEO inactivism increases the likelihood that investors believe the CEO shares their position on a social issue. Finally, we do not find evidence that investor decisions are influenced by whether CEO (in)activism is in response to an external prompt. This study contributes to the emerging literature on CEO activism, a unique form of voluntary disclosure, by providing evidence about how CEO (in)activism influences investors. We also contribute to the literature examining the impact of social media disclosure on investor decisions. Finally, our findings have practical implications for CEOs, who increasingly face external pressures to engage in activism.","PeriodicalId":10595,"journal":{"name":"Contemporary Accounting Research","volume":"42 1","pages":"525-552"},"PeriodicalIF":3.2,"publicationDate":"2024-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/1911-3846.13004","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143646223","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Measuring systemic risk: A financial statement–based approach for insurance firms and banks

IF 3.2 3区管理学

Contemporary Accounting Research Pub Date : 2024-12-27 DOI: 10.1111/1911-3846.13008

Venkat Peddireddy, Shiva Rajgopal

{"title":"Measuring systemic risk: A financial statement–based approach for insurance firms and banks","authors":"Venkat Peddireddy, Shiva Rajgopal","doi":"10.1111/1911-3846.13008","DOIUrl":"https://doi.org/10.1111/1911-3846.13008","url":null,"abstract":"We introduce CRISK, a financial statement–based measure, to assess the systemic risk contribution of a financial firm. CRISK measures the capital shortfall of a financial firm conditional on severe distress in the entire system. Our measure complements the market-based measure, SRISK, introduced by Acharya et al. (2012, American Economic Review, 102(3), 59–64) and Brownlees and Engle (2017, Review of Financial Studies, 30(1), 48–79), in identifying systemically risky financial firms. While SRISK provides a timelier assessment using real-time stock market data, CRISK offers a more nuanced approach using accounting information and is tailored to the distinct characteristics of insurance firms and commercial banks. Our empirical analysis shows that (1) compared to CRISK, SRISK tends to overestimate capital shortfalls for insurance firms and for banks that hold a substantial portion of Federal Deposit Insurance Corporation–insured deposits while underestimating capital shortfalls for banks heavily reliant on uninsured deposits; (2) CRISK estimates of capital shortfall closely align with the actual capital injections received by financial firms during the financial crisis of 2007–2009; and (3) CRISK exhibits a significant positive correlation with short interest. Based on our findings, we recommend using SRISK as an initial screening tool to identify potential systemically risky financial firms, followed by refining the list and validating the expected capital shortfall using CRISK.","PeriodicalId":10595,"journal":{"name":"Contemporary Accounting Research","volume":"42 1","pages":"490-524"},"PeriodicalIF":3.2,"publicationDate":"2024-12-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/1911-3846.13008","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143646288","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

“No comment”: Language frictions and the IASB's due process

IF 3.2 3区管理学

Contemporary Accounting Research Pub Date : 2024-12-16 DOI: 10.1111/1911-3846.13001

Eduardo Flores, Brian R. Monsen, Emily Shafron, Christopher G. Yust

引用次数: 0