Concurrent Sessions最新文献

{"title":"An Examination of the Impact of Audit Market Concentration on Audit Fees through the Prism of Auditors’ Efficiency","authors":"Ping Zhang, Minlei Ye, D. Simunic, Ling Chu","doi":"10.2139/ssrn.3103266","DOIUrl":"https://doi.org/10.2139/ssrn.3103266","url":null,"abstract":"The extant auditing literature documents an inconsistent relationship between audit fees and market concentration. In this paper, we argue that the impact of market concentration on audit fees is auditor and auditee specific. Based on the fact that the audit services to an auditee are generally provided in their entirety by one auditor, we conjecture that the competition for an engagement is essentially based on costs (i.e., Bertrand competition) and that larger auditors are more efficient. Accordingly, we develop an audit fee determination framework that predicts that the disparity in sizes of the largest and the second-largest auditors result in differential audit fees charged by the largest auditor and other auditors. Since the concentration of an audit market is inherently associated with the size disparity in the market, our fee determination framework suggests that market concentration does not affect audit fees uniformly. Indeed, we document that market concentration increases the audit fees to auditees (in particular the large auditees) serviced by the largest auditor in a market and decreases the audit fees to all auditees serviced by other auditors. The results are consistent with our theory and explain the inconsistent empirical relationship between concentration and audit fees documented in the literature.","PeriodicalId":382675,"journal":{"name":"Concurrent Sessions","volume":"19 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-08-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123111024","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Effects of Time Pressure on the Belief Revisions of Nonprofessional Investors","authors":"Christian Pietsch, William F. Messier, Jr., Robyn L. Raschke","doi":"10.2139/ssrn.2893870","DOIUrl":"https://doi.org/10.2139/ssrn.2893870","url":null,"abstract":"This is the first study to experimentally investigate the interactive effects of time pressure and the order of information by integrating a time pressure variable into the predictions of the belief-adjustment (BA) model. Substantial research documents the continuing importance of both order effects and time pressure in a variety of accounting contexts. Prior accounting research (Kahle, Pinsker, & Pennington, 2005; Trotman & Wright, 2000) as well as Hogarth and Einhorn (1992) in their original article on the BA model have called for an investigation of the potential moderating effect of time pressure on order effects; however, no such research exists. We utilize psychology theories of arousal to propose and examine a path model of the effects of time pressure on nonprofessional investors’ belief revisions. Individual investors make a stock price judgment and a short-term investment decision following the receipt of a news announcement that contained mixed (i.e., positive and negative) information about the company’s stock. We manipulated the order in which the information is presented to participants and the time available to make the stock price judgment and investment decision. Our findings support the proposed model. First, investors trying to make a short-term profit under a time limit perceived significant time pressure, even when the time available to make the decision is equal to the time usually required under no time pressure to make such a decision. Second, perceived time pressure had a significant, positive effect on individual investors’ motivation but also on their stress and on perceived task difficulty. Perceived task difficulty had a significant interactive effect with the order of information on individual investors’ investment decisions and there is an optimal level of perceived time pressure and consequent perceived task difficulty at which order effects are eliminated. Third, greater motivation and stress caused increased stock price estimations and greater investments into the stock, which may explain individual investors’ excessive trading observed in prior research. This effect was reversed at very high levels of perceived task difficulty resulting in a disconfirmation bias, presumably to ease cognitive strain and to avoid a loss when the time is too short to make an informed decision.","PeriodicalId":382675,"journal":{"name":"Concurrent Sessions","volume":"36 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-03-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125070666","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Economic Policy Uncertainty, Monetary Policy Uncertainty, and Bank Earnings Opacity","authors":"J. Jin, K. Kanagaretnam, Yi Liu, Gerald J. Lobo","doi":"10.2139/ssrn.3097592","DOIUrl":"https://doi.org/10.2139/ssrn.3097592","url":null,"abstract":"Using a sample of U.S. banks and indices for economic policy uncertainty and monetary policy uncertainty developed by Baker et al. (2016), we investigate whether these two sources of policy uncertainty affect bank earnings opacity. When economic and monetary policies are relatively uncertain, it is easier for bank managers to distort financial information, as unpredictable policy changes make assessing the existence and impact of hidden “adverse news” more difficult for external stakeholders such as investors and creditors. Policy uncertainty also increases the fluctuation in banks’ earnings and cash flows, thus providing additional incentives and opportunities for bank managers to engage in earnings management. Our results show that uncertainty in economic policy and monetary policy are positively related to earnings opacity, proxied by the magnitude of discretionary loan loss provisions and the likelihood of just meeting or beating the prior year’s earnings, and negatively related to the level of accounting conservatism (i.e., the timeliness of recognition of bad news relative to good news). Collectively, our results suggest that economic policy uncertainty and monetary policy uncertainty lead to greater earnings opacity. We also find that the impact of policy uncertainty on financial reporting distortion is less pronounced for stronger banks (i.e., banks with high capital ratios).","PeriodicalId":382675,"journal":{"name":"Concurrent Sessions","volume":"19 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-01-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133477633","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Increased Creditor Protection in Bankruptcy and Trade Credit: Evidence from the 2005 BAPCPA","authors":"Wenxia Ge, Caiyue Ouyang, Zhenyang Shi, Byron Y. Song","doi":"10.2139/ssrn.3094746","DOIUrl":"https://doi.org/10.2139/ssrn.3094746","url":null,"abstract":"We examine whether the increased creditor protection under the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) affects suppliers’ provision of trade credit to their customers with high default risk. Employing a difference-in-differences analysis for a sample of U.S. public firms during 2002-2008, we find that suppliers whose customers have high default risk extend more trade credit after BAPCPA. We also find that this relation exists when suppliers have stronger reliance on their customers. Overall, our results indicate that the increased creditor protection in bankruptcy induces suppliers to offer more trade credit to customers with high default risk during the ordinary course of business. Our findings have policy implications given the heated debate over the BAPCPA’s effect on Chapter 11 bankruptcy process.","PeriodicalId":382675,"journal":{"name":"Concurrent Sessions","volume":"46 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-12-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127926115","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Mental Accounting and Taxpayer Compliance: Insights into the Referent Point that Separates Honest from Dishonest Behavior","authors":"I. Burt, L. Thorne, Jay K. Walker","doi":"10.2139/ssrn.3098194","DOIUrl":"https://doi.org/10.2139/ssrn.3098194","url":null,"abstract":"Empirical results grounded in prospect theory shows that taxpayers’ compliance is a function of whether they are in a tax gain or loss position, being more likely to “cheat” when they perceive that they are in a tax loss as compared to tax gain. Nevertheless, what remains to be determined is how taxpayers mentally determine what is a tax loss or a tax gain. We conduct a field experiment when taxpayers are filing actual returns to better determine the actual referent point that separates tax gains from tax losses. We find that mental categorization of taxes paid and owed is critical to taxpayer determination of their referent point, which takes into account what they anticipate they will owe or receive upon filing their tax return. From a theoretical perspective, our research shows that current perceptions of their expected asset position shapes the referent point. From a practical perspective, our findings suggest that taxpayer honesty depends primarily on how they separate tax withholdings from their current net worth.","PeriodicalId":382675,"journal":{"name":"Concurrent Sessions","volume":"31 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-12-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122966728","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"How to Be a Good Coauthor","authors":"D. Collins, Derek K. Oler, Christopher J. Skousen","doi":"10.2139/ssrn.3101539","DOIUrl":"https://doi.org/10.2139/ssrn.3101539","url":null,"abstract":"Success in publishing accounting research often requires success in multiple coauthoring relationships. Further, the number of coauthored papers in accounting (as well as most other fields of research) has steadily increased. Given the importance and popularity of coauthoring, our paper provides comprehensive advice to accounting researchers on how to manage a coauthoring relationship. A good coauthor establishes clear roles and expectations before a project begins and keeps commitments. Communication throughout the project is essential as coauthors confront difficulties and setbacks. We conclude by discussing several situations that coauthors may confront, and provide recommendations.","PeriodicalId":382675,"journal":{"name":"Concurrent Sessions","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133625985","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Policy Uncertainty and Analyst Performance","authors":"Vishal P. Baloria, Kaleab Y. Mamo","doi":"10.2139/ssrn.2533049","DOIUrl":"https://doi.org/10.2139/ssrn.2533049","url":null,"abstract":"Motivated by recent high-profile instances of policy uncertainty in the U.S., this study examines whether policy uncertainty affects the forecasting performance of financial analysts. We conjecture that policy uncertainty increases the complexity of the forecasting task for analysts, resulting in less accurate earnings forecasts. We find robust evidence that forecast accuracy decreases in the presence of policy uncertainty. We also document that the negative association between forecast accuracy and policy uncertainty is more pronounced when policy uncertainty is particularly high and when firms are more sensitive to policy uncertainty. Given the importance of the intermediation role played by financial analysts, these findings have implications for understanding factors that affect information dissemination in capital markets.","PeriodicalId":382675,"journal":{"name":"Concurrent Sessions","volume":"23 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133413680","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Directly Managing Earnings by Deviating from Clear-Cut Property, Plant and Equipment (PPE) Impairment Rules","authors":"A. Mensah","doi":"10.2139/ssrn.2891662","DOIUrl":"https://doi.org/10.2139/ssrn.2891662","url":null,"abstract":"Mapping reported PPE impairment amounts (i.e. write-downs and reversals) to only valid directions in legitimate triggers specified under benchmark impairment rules (IAS 36 and SFAS #144), I investigate whether managers’ impairment decisions are justified. Finding evidence of nonconformity to rules, I quantify this as ORAI (i.e. opportunistic reporting of asset impairment) and document that target beating, smoothing, small profits, and other managerial intents drive ORAI while governance mechanisms mitigate it. I find evidence of ‘earnings management (EM) planning’ in jurisdictions allowing both write-downs and reversals such that the write-down tool achieves downward EM in period t but is followed in future periods by upward EM achieved via the reversal tool. I consider this as incremental contribution to literature, but a more novel contribution which this study brings is the linking of managers’ reversals decisions to impairment rules to detect impairment rules deviators.","PeriodicalId":382675,"journal":{"name":"Concurrent Sessions","volume":"28 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127036554","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Performance Effects of Tangible versus Cash Rewards: The Mediating Role of Categorization","authors":"Willie Choi, Adam Presslee","doi":"10.2139/ssrn.2645966","DOIUrl":"https://doi.org/10.2139/ssrn.2645966","url":null,"abstract":"Organizations spend billions of dollars annually on performance-contingent tangible rewards such as vouchers and merchandise, yet prior research reports inconsistent support for the performance benefits of tangible rewards over cash rewards. We conduct two studies to better understand the performance effects of tangible versus cash rewards. The results of an experiment with a real-effort task (Study 1) indicate task performance increases the more participants categorize performance-contingent pay separately from salary. We also find whether participants differentially categorize cash versus tangible rewards separately from salary depends on the framing of compensation components as either additional wage or a bonus. The results of a free-sort task (Study 2) indicate graduate business students are more likely to mentally categorize tangible rewards differently from salary than they do cash rewards. Collectively, our results inform practice on the importance of distinct categorization of rewards when selecting the type of reward to offer employees, and also inform theory by highlighting an important obstacle to testing the relative effectiveness of cash versus tangible rewards using lab experiments.","PeriodicalId":382675,"journal":{"name":"Concurrent Sessions","volume":"80 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-03-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116762128","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"How Readable are SOX 404 Reports? An Application of Textual Analysis","authors":"J. Boritz, B. Louise Hayes, Lev M. Timoshenko","doi":"10.2139/ssrn.2715400","DOIUrl":"https://doi.org/10.2139/ssrn.2715400","url":null,"abstract":"This study examines all SOX 404 reports issued between 2004 and 2014 to determine their readability as measured by the FOG index after controlling for report size. We find that managements' reports are more readable than auditors' reports. Big 6 reports are less readable than non-Big 6 reports. Among the Big 4 firms, two firms issued significantly more readable reports than the others. The readability of managements' reports decreased after Auditing Standard (AS) No. 5 (PCAOB 2007) was issued whereas the readability of auditors' reports did not change. Reports containing three or more weaknesses (implying entity level control weaknesses) are significantly more readable than other reports.","PeriodicalId":382675,"journal":{"name":"Concurrent Sessions","volume":"7 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-01-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131873563","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}