Showing 1 - 10 of 13,735
We examine the influence of common ownership on commonalities in the information environment. Specifically, we study commonalities in financial statements and in the actions of key agents such as financial analysts and firm managers who contribute and respond to the information environment....
Persistent link: https://www.econbiz.de/10012866578
This paper analyzes the optimal design of compensation contracts in the presence of earnings management incentives, and its interplay with investors' information acquisition decisions. We consider a setting in which compensation contract is based on both accounting earnings and stock price when...
Persistent link: https://www.econbiz.de/10013077160
This study investigates the role of independent board members in insider-controlled firms by examining the effectiveness of independent boards in reducing information asymmetry in family versus non-family firms. We show a negative relation between the proportion of independent directors and...
Persistent link: https://www.econbiz.de/10012863548
Persistent link: https://www.econbiz.de/10014584655
We examine whether voluntary disclosure is associated with incentives for firms to collude. Public disclosure can facilitate collusion by aiding with coordination and monitoring for defections. Using common ownership (investors holding stock in competing firms) to identify reduced incentives to...
Persistent link: https://www.econbiz.de/10014351242
We consider a principal-agent setting in which a manager's compensation depends on a noisy performance signal, and the manager is granted the right to choose an (accounting) method to determine the value of the performance signal. We study the effect of the degree of such reporting discretion,...
Persistent link: https://www.econbiz.de/10014220160
researchers and practitioners to determine any manipulation in financial reporting, the practice of creative accounting is still …
Persistent link: https://www.econbiz.de/10013168881
LaFond and Watts (2008) provide evidence that information asymmetry might be a determinant of accounting conservatism. One implication of their paper is that regulators trying to reduce information asymmetry by lowering the level of accounting conservatism might be wrong. However, there is a...
Persistent link: https://www.econbiz.de/10013088519
In this paper, we offer a new theory for the economic demand of accounting conservatism, which emphasizes the signaling … signing the debt contract. In developing this signaling theory of conservatism, our paper achieves two major outcomes: (1) we …
Persistent link: https://www.econbiz.de/10014207373
Khan and Watts (2009) develop a firm-year measure of conditional conservatism, labeled C_Score, that builds on the Basu (1997) asymmetric timeliness (AT) measure. However, recent research documents an asymmetric relation between lagged earnings and current returns, indicative of bias in the Basu...
Persistent link: https://www.econbiz.de/10012912364