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Executive overconfidence and the slippery slope to financial misreporting
Schrand, Catherine M.; Zechman, Sarah L.C. - In: Journal of Accounting and Economics 53 (2012) 1, pp. 311-329
A detailed analysis of 49 firms subject to AAERs suggests that approximately one-quarter of the misstatements meet the legal standards of intent. In the remaining three quarters, the initial misstatement reflects an optimistic bias that is not necessarily intentional. Because of the bias,...
Persistent link: https://www.econbiz.de/10010572404
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Earnings quality: Evidence from the field
Dichev, Ilia D.; Graham, John R.; Harvey, Campbell R.; … - In: Journal of Accounting and Economics 56 (2013) 2, pp. 1-33
We provide insights into earnings quality from a survey of 169 CFOs of public companies and in-depth interviews of 12 … CFOs and two standard setters. CFOs believe that (i) above all, high-quality earnings are sustainable and repeatable … long-term estimates; (ii) about 50% of earnings quality is driven by non-discretionary factors such as industry and macro …
Persistent link: https://www.econbiz.de/10011043072
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Commitment to social good and insider trading
Gao, Feng; Lisic, Ling Lei; Zhang, Ivy Xiying - In: Journal of Accounting and Economics 57 (2014) 2, pp. 149-175
A firm׳s investment in corporate social responsibility (CSR) builds a positive image of caring for social good and imposes additional costs on executives׳ informed trading, which is widely perceived self-serving. We thus expect executives of CSR-conscious firms to be more likely to refrain...
Persistent link: https://www.econbiz.de/10011043075
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The Sarbanes–Oxley act and cross-listed foreign private issuers
Li, Xi - In: Journal of Accounting and Economics 58 (2014) 1, pp. 21-40
. Both short- and long-term test results suggest that the costs of SOX compliance significantly exceed its benefits and … reduce the net benefits of cross-listings. …
Persistent link: https://www.econbiz.de/10010906418
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Differences in the information environment prior to seasoned equity offerings under relaxed disclosure regulation
Clinton, Sarah B.; White, Joshua T.; Woidtke, Tracie - In: Journal of Accounting and Economics 58 (2014) 1, pp. 59-78
with capital formation benefits after SOR. …
Persistent link: https://www.econbiz.de/10010906419
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Public pension accounting rules and economic outcomes
Naughton, James; Petacchi, Reining; Weber, Joseph - In: Journal of Accounting and Economics 59 (2015) 2, pp. 221-241
We find a negative association between a state׳s fiscal condition and the use of discretion in applying Governmental Accounting Standards Board (GASB) rules to understate pension funding gaps. We also find that the use of discretion is negatively associated with states’ decisions to increase...
Persistent link: https://www.econbiz.de/10011208573
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Creditor control rights, state of nature verification, and financial reporting conservatism
Tan, Liang - In: Journal of Accounting and Economics 55 (2013) 1, pp. 1-22
I examine the impact of state-contingent allocation of creditor control rights on financial reporting. Using a discontinuity analysis, I find that firms' financial reporting becomes more conservative immediately after covenant violations and this effect persists for at least eight quarters. The...
Persistent link: https://www.econbiz.de/10010608146
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Assessing methods of identifying management forecasts: CIG vs. researcher collected
Chuk, Elizabeth; Matsumoto, Dawn; Miller, Gregory S. - In: Journal of Accounting and Economics 55 (2013) 1, pp. 23-42
This paper examines the characteristics of management forecasts available on Thomson First Call’s Company Issued Guidance (CIG) database relative to a sample of forecasts hand-collected through a search of company press releases. Due to the significantly lower cost of using CIG (relative to...
Persistent link: https://www.econbiz.de/10010608147
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Non-discretionary conservatism: Evidence and implications
Lawrence, Alastair; Sloan, Richard; Sun, Yuan - In: Journal of Accounting and Economics 56 (2013) 2, pp. 112-133
A large body of accounting research finds that various contracting incentives lead managers to engage in conservative accounting practices. We extend existing research by modeling the impact of extant accounting rules on conservative accounting. Accounting rules typically require assets to be...
Persistent link: https://www.econbiz.de/10010729557
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Did the SEC impact banks' loan loss reserve policies and their informativeness?
Beck, Paul J.; Narayanamoorthy, Ganapathi S. - In: Journal of Accounting and Economics 56 (2013) 2, pp. 42-65
reporting quality. We show that banks' allowance estimation changed in response to the SEC's intervention. While allowance …
Persistent link: https://www.econbiz.de/10010729558