{"title":"When it pays to be a friend: Investigating nonprofessional investors' judgments toward CSR companies following an accounting restatement","authors":"Erik S. Boyle , Natalia Mintchik , Rick C. Warne","doi":"10.1016/j.adiac.2022.100638","DOIUrl":"10.1016/j.adiac.2022.100638","url":null,"abstract":"<div><p>Prior literature suggests that engagement in corporate social responsibility (CSR) creates an insurance effect that shields companies from the negative consequences of corporate missteps. We experimentally examine whether this protection extends to an accounting restatement and whether investors' attributions of the underlying reasons for this restatement affect their judgments. Results indicate that when a restatement occurs, non-professional investors evaluate high-performing CSR companies more favorably than their average-performing peers, but only when the misstatement appears unintentional. We also incorporate the Stereotype Content Model to test whether feelings of warmth and competence toward the company affect non-professional investor judgments. We document that absent a restatement, feelings of warmth mediate the relationship between CSR performance and investor judgments through competence. Following a misstatement, however, warmth directly mediates that relationship. Our results provide insights into specific psychological mechanisms and boundary conditions of the previously documented insurance effect of CSR performance.</p></div>","PeriodicalId":46906,"journal":{"name":"Advances in Accounting","volume":null,"pages":null},"PeriodicalIF":1.6,"publicationDate":"2023-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45964387","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":"Corporate culture and financial statement comparability","authors":"Mansoor Afzali","doi":"10.1016/j.adiac.2022.100640","DOIUrl":"10.1016/j.adiac.2022.100640","url":null,"abstract":"<div><p>In this paper, I empirically examine the influence of corporate culture on the comparability of financial statements. I predict that firms with strong corporate cultures have less-opportunistic managers, who make homogenous decisions when faced with similar economic events, resulting in greater accounting comparability. For a sample of U.S. companies, I find empirical evidence consistent with this prediction: firms with strong corporate cultures have greater peer- and industry-level comparability. These results are robust to using an entropy-balanced sample, correcting for sample selection bias using Heckman's two-step procedure, and employing different measures of corporate culture strength. Further analysis reveals that sudden CEO turnovers that move firms towards (away from) a stronger corporate culture positively (negatively) influence post-turnover accounting comparability. My results provide new insights on the role of corporate culture for financial reporting.</p></div>","PeriodicalId":46906,"journal":{"name":"Advances in Accounting","volume":null,"pages":null},"PeriodicalIF":1.6,"publicationDate":"2023-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43328958","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}
Christopher T. Edmonds , Ryan D. Leece , Beth Y. Vermeer , Thomas E. Vermeer
{"title":"The role of adverse outcomes in municipal debt costs","authors":"Christopher T. Edmonds , Ryan D. Leece , Beth Y. Vermeer , Thomas E. Vermeer","doi":"10.1016/j.adiac.2023.100671","DOIUrl":"https://doi.org/10.1016/j.adiac.2023.100671","url":null,"abstract":"","PeriodicalId":46906,"journal":{"name":"Advances in Accounting","volume":null,"pages":null},"PeriodicalIF":1.6,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50185923","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":"Cost stickiness and bank loan contracting","authors":"Jeong-Bon Kim , Jie Zhou","doi":"10.1016/j.adiac.2023.100645","DOIUrl":"https://doi.org/10.1016/j.adiac.2023.100645","url":null,"abstract":"","PeriodicalId":46906,"journal":{"name":"Advances in Accounting","volume":null,"pages":null},"PeriodicalIF":1.6,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50185712","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":"Local competition and auditors' provision of non-audit services","authors":"Nam Ho","doi":"10.1016/j.adiac.2023.100678","DOIUrl":"https://doi.org/10.1016/j.adiac.2023.100678","url":null,"abstract":"","PeriodicalId":46906,"journal":{"name":"Advances in Accounting","volume":null,"pages":null},"PeriodicalIF":1.6,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50185961","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 audit fees","authors":"Kristyn Calabrese","doi":"10.1016/j.adiac.2023.100663","DOIUrl":"https://doi.org/10.1016/j.adiac.2023.100663","url":null,"abstract":"","PeriodicalId":46906,"journal":{"name":"Advances in Accounting","volume":null,"pages":null},"PeriodicalIF":1.6,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50186381","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":"Gold and tax capitalization: A natural experiment","authors":"Steven Smith, Ron Singleton","doi":"10.1016/j.adiac.2023.100655","DOIUrl":"https://doi.org/10.1016/j.adiac.2023.100655","url":null,"abstract":"","PeriodicalId":46906,"journal":{"name":"Advances in Accounting","volume":null,"pages":null},"PeriodicalIF":1.6,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50197533","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":"Discussion of “Is there a dark side of competition? Product market competition and auditor-client contracting”","authors":"M. Kathleen Harris, Cathy S. Jun","doi":"10.1016/j.adiac.2023.100659","DOIUrl":"https://doi.org/10.1016/j.adiac.2023.100659","url":null,"abstract":"","PeriodicalId":46906,"journal":{"name":"Advances in Accounting","volume":null,"pages":null},"PeriodicalIF":1.6,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50197535","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":"Do social networks improve the chance of obtaining challenging assignments? Evidence from Black accounting professionals","authors":"R. Mithu Dey, Lucy Lim","doi":"10.1016/j.adiac.2023.100677","DOIUrl":"https://doi.org/10.1016/j.adiac.2023.100677","url":null,"abstract":"","PeriodicalId":46906,"journal":{"name":"Advances in Accounting","volume":null,"pages":null},"PeriodicalIF":1.6,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50185963","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":"Aggregate earnings and market expectations in United States presidential election prediction markets","authors":"Taylor Wiesen","doi":"10.1016/j.adiac.2022.100639","DOIUrl":"https://doi.org/10.1016/j.adiac.2022.100639","url":null,"abstract":"","PeriodicalId":46906,"journal":{"name":"Advances in Accounting","volume":null,"pages":null},"PeriodicalIF":1.6,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50191832","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}