Public accountants are in high demand by non-accounting firms. While this demand attracts high-quality accountants to public accounting, it can negatively impact audit quality via disrupting the audit (e.g., through distraction, reduced motivation to work hard, and human capital loss). We find...

Gitam The study examined the relationship between taxation and financial performance of quoted SMEs in Nigeria from 2013 to 2017. Company income tax and education tax were taxation proxies while return on investment, return on assets and current ratio were the proxies of financial performance....

This study examines whether sell-side debt research has investment value for debt investors. We find that both the levels of and changes in recommendations are associated with event-time abnormal bond returns, and that changes in recommendations (i.e., upgrades and downgrades) are associated...

We provide evidence that some managers delay the revelation of bad news using a coordinated strategy involving reported accruals and earnings forecasts. Specifically, we observe a correlated bias in contemporaneous accruals and management forecasts when both indicate higher, but not lower,...

We conduct an experiment in the securities-based crowdfunding setting to investigate whether some investors avoid accounting information for psychological reasons, even when they understand the information is useful in their decision-making. Results suggest investors who experience relatively...

We examine the adoption effect of ASC 606 on revenue informativeness, analyst forecast dispersion, and forecast errors. We find that the adoption of ASC 606 is associated with increases in revenue informativeness but decreases in analyst forecast accuracy and consensus. Such adoption effects are...

We examine investors’ reaction and the audit market implications of the Holding Foreign Companies Accountable Act (HFCAA), which threatens to delist Chinese issuers whose auditors are not subject to PCAOB inspection. We observe negative market returns for U.S.-listed Chinese issuers,...

We use a standard dynamic factor model to extract new factors based on the real-time flow of accounting data from the corporate financial reports. The extracted accounting factors exploit across-sector comovements in corporate value creation drivers and can be used together with other closely...

FASB’s ASU 2011-05 mandated that comprehensive income (CI) and other comprehensive income (OCI) be reported in performance statements (a single income statement or a separate statement of CI) rather than equity statements. Employing a difference-in-differences research design with ASU 2011-05...

This study examines whether and how budgetary participation practices affect top managers’ earnings forecasts. Previous research indicates that subordinate managers participating in the budgetary process may try to “play games” and underestimate budgeted revenues or overestimate budgeted...