Contemporary Accounting Research最新文献

{"title":"Duality in skepticism: Contrasting judgment and action","authors":"Emily S. Blum,&nbsp;Richard C. Hatfield","doi":"10.1111/1911-3846.70008","DOIUrl":"https://doi.org/10.1111/1911-3846.70008","url":null,"abstract":"<p>Professional skepticism is an essential element of a healthy audit. In this study, we present a framework in which the two elements of professional skepticism—skeptical judgment and skeptical action—differ in that skeptical judgment involves paying attention to audit risks, whereas skeptical action often involves overcoming personal risks. This distinction suggests that the optimal conditions for skeptical judgment may differ from the optimal conditions for converting that judgment to skeptical action. Specifically, interventions that promote vigilance will facilitate judgment because they make potential accounting issues salient, but such a focus will also draw attention to potential adverse consequences of taking action. To test this proposition, we conduct two studies in which we align skeptical judgment and skeptical action with two pairs of distinct and contrasting mindsets to operationalize differential vigilance. Our results suggest a duality in skepticism which has important implications for researchers and practitioners designing interventions to improve audit quality.</p>","PeriodicalId":10595,"journal":{"name":"Contemporary Accounting Research","volume":"42 4","pages":"2891-2914"},"PeriodicalIF":3.8,"publicationDate":"2025-09-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145659697","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}

{"title":"The impact of SEC reporting changes on information acquisition and market dynamics: Evidence from foreign cross-listed firms","authors":"Yongtae Kim,&nbsp;Jedson Pinto,&nbsp;Edward Sul","doi":"10.1111/1911-3846.70003","DOIUrl":"https://doi.org/10.1111/1911-3846.70003","url":null,"abstract":"<p>This paper examines how a change in disclosure regulation influences investors' information acquisition and trading across multiple markets. We leverage the 2007 elimination of the Form 20-F reconciliation requirement for cross-listed firms that prepare financial statements under IFRS. Using a difference-in-differences research design, we show that investors acquire fewer Form 20-Fs of IFRS-reporting cross-listed firms when these forms are not filed in a timely manner relative to the home-country earnings announcement. We also find an increased acquisition of earnings-specific 6-Ks, indicating a shift in investor attention from delayed and unreconciled 20-Fs to more timely earnings releases in the home country. Furthermore, we find that American Depositary Receipt (ADR) market reactions to local earnings announcements increase after the deregulation, especially for firms with strong home-country institutions. In addition, we find that the deregulation increases return co-movement between the US ADR market and the home-country stock market for IFRS filers' shares. Our results bring novel insights regarding the cross-market impact of the disclosure regulation change.</p>","PeriodicalId":10595,"journal":{"name":"Contemporary Accounting Research","volume":"42 4","pages":"2861-2890"},"PeriodicalIF":3.8,"publicationDate":"2025-09-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145659743","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}

{"title":"Does enterprise risk management bolster investor confidence? Evidence from options-based restatement contagion, investment, and misstatements","authors":"Michael Neel,&nbsp;Jianren Xu","doi":"10.1111/1911-3846.13063","DOIUrl":"https://doi.org/10.1111/1911-3846.13063","url":null,"abstract":"<p>Using industry restatement contagion as an external negative shock, we study the effectiveness of enterprise risk management (ERM) in mitigating downside risk and enhancing investor confidence. We find that ERM curbs overinvestment and earnings misstatement among firms when other firms in their industry engage in undisclosed misstatements that are subsequently restated. Following the announcements of these industry restatements, peers with ERM experience a smaller increase in implied volatility skewness. These effects are driven by peers with young CEOs, complex segment structures, low prior earnings performance, and in competitive industries. Overall, our findings highlight ERM's role in bolstering investor confidence by effectively managing firms' underlying risks.</p>","PeriodicalId":10595,"journal":{"name":"Contemporary Accounting Research","volume":"42 4","pages":"2826-2860"},"PeriodicalIF":3.8,"publicationDate":"2025-09-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145659742","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}

{"title":"Can combining judgment decomposition and notetaking improve group auditors' sensitivity to qualitative risk?","authors":"Ann G. Backof,&nbsp;Brant E. Christensen,&nbsp;Steven M. Glover,&nbsp;Jaime J. Schmidt","doi":"10.1111/1911-3846.13072","DOIUrl":"https://doi.org/10.1111/1911-3846.13072","url":null,"abstract":"<p>In this study, we leverage judgment decomposition and information acquisition theories to develop and test an intervention to improve group auditors' identification of and response to component-level qualitative risk. Improving group auditors' response to qualitative risk is important because (1) group audits are prevalent today and require multiple qualitative risk assessments, (2) auditors have historically overlooked qualitative risks, and (3) prior interventions have failed to improve auditors' response to qualitative risk. In an experiment with 88 audit partners and managers, we find that a hybrid risk assessment approach that combines elements of judgment decomposition and notetaking improves auditors' group audit planning decisions. Specifically, auditors utilizing our hybrid approach are better able to identify and respond to component-level qualitative risks than auditors who use a holistic approach. Importantly, the improvement in qualitative risk response does not come at the expense of auditors' response to quantitative risk.</p>","PeriodicalId":10595,"journal":{"name":"Contemporary Accounting Research","volume":"42 4","pages":"2799-2825"},"PeriodicalIF":3.8,"publicationDate":"2025-09-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/1911-3846.13072","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145659504","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}

{"title":"How investor status affects judgments of management credibility: The role of company identification and locus of attribution","authors":"Erik Peek,&nbsp;Marcel van Rinsum,&nbsp;Sebastian Stirnkorb","doi":"10.1111/1911-3846.70004","DOIUrl":"https://doi.org/10.1111/1911-3846.70004","url":null,"abstract":"<p>This study investigates the joint effects of investor status and locus of attribution on investors' judgments of management credibility. We study these effects in the context of an adverse event disclosure. Building on social identity and ultimate attribution error theory, we predict and find that under external attribution, current investors perceive management as more credible than prospective investors do. In contrast, we predict and find that investor status does not affect perceived management credibility under internal attribution. We provide evidence supporting our theory that company identification explains these findings. In addition, we document that the differences in credibility are mainly driven by perceptions of management's trustworthiness, rather than competence. Moreover, our results indicate that these differences in credibility judgments affect earnings expectations, thus inducing disagreement among investors. Our findings have important practical implications, including that company identification can be an asset to companies and that communicating adverse events with an external attribution reduces perceived management credibility for prospective investors.</p>","PeriodicalId":10595,"journal":{"name":"Contemporary Accounting Research","volume":"42 4","pages":"2746-2775"},"PeriodicalIF":3.8,"publicationDate":"2025-09-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/1911-3846.70004","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145659773","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}

{"title":"Indirect earnings management","authors":"Scott B. Jackson,&nbsp;Jason T. Rasso,&nbsp;Aaron F. Zimbelman","doi":"10.1111/1911-3846.70006","DOIUrl":"https://doi.org/10.1111/1911-3846.70006","url":null,"abstract":"<p>We hypothesize that managers use their hierarchical role as reviewers of accounting judgments and estimates to manage earnings, which we call indirect earnings management (IEM). Across a series of experiments using highly experienced financial executives as participants, we provide evidence that IEM (1) is likely used by managers to achieve current and future earnings targets, (2) reduces both cognitive dissonance associated with managing earnings and the extent to which managers think that their behaviors constitute earnings management, and (3) is more likely to be used when corporate governance is strong than when corporate governance is weak. The results of this study suggest new directions for future research on earnings management and highlight the important role of the hierarchical structure of the accounting function in efforts to understand how earnings are managed.</p>","PeriodicalId":10595,"journal":{"name":"Contemporary Accounting Research","volume":"42 4","pages":"2776-2798"},"PeriodicalIF":3.8,"publicationDate":"2025-09-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/1911-3846.70006","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145659737","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}

{"title":"Riding attention spikes: How analysts respond to advertising","authors":"Minjae Koo,&nbsp;Annika Yu Wang,&nbsp;Yin Wang,&nbsp;Liandong Zhang","doi":"10.1111/1911-3846.13068","DOIUrl":"https://doi.org/10.1111/1911-3846.13068","url":null,"abstract":"<p>Product market advertising, while containing little new information, triggers spikes in investor attention. Using weekly advertising data, we find that sell-side analysts issue optimistic earnings forecasts in response to heavier advertising in the prior week. This effect is not driven by confounding earnings or product news. It is more pronounced for experienced analysts and analysts affiliated with brokerages that rely solely on trading revenues. The optimistic forecast bias intensifies the impact of advertising on investor trades of the underlying stock during the following week, especially on retail buying. Overall, analysts appear to issue optimistic forecasts to exploit retail investor attention spikes induced by advertising.</p>","PeriodicalId":10595,"journal":{"name":"Contemporary Accounting Research","volume":"42 4","pages":"2683-2713"},"PeriodicalIF":3.8,"publicationDate":"2025-09-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/1911-3846.13068","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145659772","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}

{"title":"From “audit machines” to tech-savvy auditors: Auditors' quest for professional security with respect to digital transformation","authors":"Pier-Luc Lajoie,&nbsp;Yves Gendron","doi":"10.1111/1911-3846.70002","DOIUrl":"https://doi.org/10.1111/1911-3846.70002","url":null,"abstract":"<p>In recent years, the Big 4 firms have embarked on digital transformation projects that have the potential to throw auditors' daily practice into turmoil. This study looks at the auditors' quest for professional security—namely, their confidence in the fundamental features of their profession. Specifically, we investigate how auditors, when construing their experiences in a firm engaged in a digital transformation project promoting automation of a significant portion of their work, seek to preserve their sense of professional security. Interviews with auditors indicate that, in contrast to the high professional insecurity caused by the commercialization of auditing in the early 2000s, the digital transformation of the profession ultimately strengthened auditors' professional security. Over time, the interviewees became receptive to the firm-promoted label of tech-savvy auditor and subscribed to the technological complementarity thesis, which sees closer “collaboration” with technology as enhancing the auditor's work rather than replacing, undermining, or enslaving the auditor. Three implications are discussed. First, our study casts doubt on auditors' romanticized view of the technological complementarity thesis in light of economic and socio-organizational theories about the automation of work. These theories lead us to question the auditors' belief that they will retain their professional autonomy. Second, according to our analyses, one key explanation for auditors' high level of professional security is that digital transformation projects surrounding the audit function are part of a continuing and reassuring trajectory of commercialization within accountancy. Third, our findings suggest that digital transformation projects act as vehicles for identity development, allowing the tech-savvy auditor to escape the shameful stereotypes ascribed to the traditional auditor—that is, an auditor who manually performs most of the mundane tasks required to complete an audit.</p>","PeriodicalId":10595,"journal":{"name":"Contemporary Accounting Research","volume":"42 4","pages":"2714-2745"},"PeriodicalIF":3.8,"publicationDate":"2025-09-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/1911-3846.70002","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145659574","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}

{"title":"Following the blind? Database coding policies and the case of IFRS noncompliance","authors":"Sara Alsarghali,&nbsp;Holger Daske,&nbsp;Hala Jada,&nbsp;Makiko Labonte","doi":"10.1111/1911-3846.13069","DOIUrl":"https://doi.org/10.1111/1911-3846.13069","url":null,"abstract":"<p>We present a case illustrating the pitfalls of insufficient disclosure of commercial databases' coding policies. We replicate the finding in the literature that a nontrivial percentage of firms mandated to adopt IFRS ignore this obligation. Specifically, Pownall and Wieczynska (2018, <i>Contemporary Accounting Research</i>, <i>35</i>(2), 1029–1066) report more than 3,000 cases, or 10% of all mandated firms in the European Union. When using primary data sources (applicable local regulations and firms' annual reports), we find that noncompliance with IFRS adoption is nonexistent in the one-to-one replication using the same firm-year observations. We attribute the prior misperception to the commercial database's insufficient disclosure of a misleading coding policy of the consolidation item. We also show that no other data provider correctly captures consolidation status, which determines whether firms must report under IFRS. In response to this gap, we showcase the application of bidirectional encoder representations from transformers (BERT) models for extracting the consolidation status and offer guidance for coding IFRS-mandated firms. Our article underscores the need to exercise caution when using secondary data sources.</p>","PeriodicalId":10595,"journal":{"name":"Contemporary Accounting Research","volume":"42 4","pages":"2614-2645"},"PeriodicalIF":3.8,"publicationDate":"2025-09-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/1911-3846.13069","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145659477","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}

{"title":"Common auditors in mergers and acquisitions: Post-acquisition financial reporting quality and audit fees","authors":"Xi Ai,&nbsp;Linda A. Myers,&nbsp;Roy Schmardebeck","doi":"10.1111/1911-3846.70000","DOIUrl":"https://doi.org/10.1111/1911-3846.70000","url":null,"abstract":"<p>Prior research documents that mergers and acquisitions result in significant financial reporting risks. In this article, we examine whether acquirers that share a common auditor with the target experience higher post-acquisition financial reporting quality (FRQ) and reduced audit fees. We find that same-office, but not different-office, common auditors are associated with improved post-acquisition FRQ, as evidenced by a decreased likelihood of misstatement, lower <i>F</i>-score, and a lower likelihood of meeting or just beating analyst forecasts. We also find that same-office common auditors are associated with a lower percentage change in audit fees. In additional tests, we find that these inferences are robust to limiting the sample to acquirers with multiple acquisitions or to acquirers and targets with no auditor switches in the prior 3 years. Together, our findings suggest that same-office common auditors facilitate knowledge transfer about the target and provide important post-acquisition benefits.</p>","PeriodicalId":10595,"journal":{"name":"Contemporary Accounting Research","volume":"42 4","pages":"2646-2682"},"PeriodicalIF":3.8,"publicationDate":"2025-09-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145659478","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}