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1.
Shai Levi 《Review of Accounting Studies》2008,13(1):1-21
This study investigates firms’ decisions to disclose accruals information in earnings press releases versus to provide it
only in 10-Q filings and the impact of this disclosure on the pricing of accruals. I find that firms disclose accruals in
their press releases when earnings alone are a weak indication of cash flow performance and that following these disclosures
the accruals information is fully impounded into stock prices. The evidence suggests that when investor demand for accruals
is likely to exist and firms disclose the information in earnings press releases, the mispricing typically associated with
accruals is mitigated.
相似文献
Shai LeviEmail: |
2.
Rong-Ruey Duh Wen-Chih Lee Chi-Yun Hua 《Review of Quantitative Finance and Accounting》2009,32(1):33-59
This paper examines whether non-audit service provision impairs auditor independence, and whether the degree of auditor independence
in Taiwan changed in the wake of the 2004 Procomp scandal. The auditors involved in the Procomp affair were suspended from
practice for 2 years and were sued, and we posit that these unprecedented sanctions and litigation affected subsequent auditor
behavior. Considering the measurement errors involved in discretionary accruals, we propose an alternative analytic approach
in which the dependent variable in the regression analysis is the difference between audited earnings and forecast earnings,
scaled by total assets, and the primary independent variable is the non-audit fees ratio. After controlling for the effects
of financial leverage, operating and market performance, industry, company size, audit firm size, management forecast error,
and management attempts to manipulate earnings, regression analysis indicates that the coefficient for non-audit fees ratio
is negative and significant in 2003 but not in 2004. Using non-audit fees instead of non-audit fees ratio to conduct the regression
analysis yields similar results. This finding is consistent with the notion that auditors make a trade-off between gaining
service fees and avoiding litigation and reputation loss. Limitations and policy implications are also offered.
相似文献
Chi-Yun HuaEmail: |
3.
Using a sample of seasoned equity offerings (SEOs), this paper examines the association between the choice of financial intermediary
and earnings management. We contend that with more stringent standards for certification and intense monitoring, highly prestigious
underwriters restrict firms’ incentives for earnings management to protect their reputation and to avoid potential litigation
risks, while firms with greater incentives for earnings management avoid strict monitoring by choosing low-quality underwriters.
Consistent with our predictions, we find an inverse association between underwriter quality and issuers’ earnings management.
In addition, we find that underwriter quality is positively related to SEOs’ post-issue performance, even after controlling
for the effect of earnings management. We also find that firms with low-underwriter prestige and high levels of earnings management
under-perform the most. However, the effect of underwriter choice on post-issue performance does not last long.
相似文献
Myung Seok ParkEmail: |
4.
David Abad Sonia Sanabria José Yagüe 《Review of Quantitative Finance and Accounting》2009,32(3):287-308
Using Spanish data, this paper examines, for the first time, the differences in the intraday response of an order-driven market
to earnings announcements made during trading and non-trading hours. We show that the speed of reaction depends on timing
of the announcement: for overnight (daytime) announcements, the improvement in liquidity is (not) immediate. This finding
could explain why Spanish firms prefer to release the bad (good) earnings announcement in trading (non-trading) hours. This
strategic timing differs from the traditional disclosure policy in American markets, suggesting that different microstructures
may react differently to news releases and, consequently, drive the strategic timing of corporate disclosures.
相似文献
José Yagüe (Corresponding author)Email: |
5.
We provide an alternative explanation for the previous finding of analysts’ overreaction to extreme good news in earnings.
We show that such finding could be a result of analysts’ rational behavior in the face of high earnings uncertainty rather
than their cognitive bias. Extreme earnings performance tends to be associated with higher earnings uncertainty that generally
leads to more forecast optimism. Once this effect is accounted for, the univariate result of analysts’ overreaction to extreme
good news in earnings is subsumed, leaving only their underreaction in general.
相似文献
Jian XueEmail: |
6.
Stephen P. Baginski John M. Hassell Michael D. Kimbrough 《Review of Quantitative Finance and Accounting》2008,31(3):311-330
The 1990s were characterized by substantial increases in the performance of and investor reliance on financial analysts. Because
managers possess superior private information and issue forecasts to align investors’ expectations with their own, we predict
that managers increased the quality of their earnings forecasts during the 1990s in order to keep pace with the improved forward-looking
information provided by financial analysts, upon which investors increasingly relied. Using a sample of 2,437 management earnings
forecasts, we document an increase in management earnings forecast precision, management earnings forecast accuracy, and managers’
tendency to explain earnings forecasts in 1993–1996 relative to 1983–1986. Given that these forecast characteristics are linked
to greater informativeness and credibility, we also document that the information content of management earnings forecasts,
as measured by the strength of share price responses to forecast news, increased in 1993–1996 relative to 1983–1986. As expected,
the increased information content of management forecasts primarily occurred for firms covered by financial analysts.
相似文献
Michael D. KimbroughEmail: |
7.
Louis T. W. Cheng Hung-Gay Fung Tak Yan Leung 《Review of Quantitative Finance and Accounting》2007,28(1):23-54
The literature has suggested that earnings and earnings forecasts provide stronger signals than dividends about future performance
of a firm. We test the information effects of simultaneous announcement of earnings and dividends in the Hong Kong market,
distinguished by three interesting features (concentrated family-shareholdings, low corporate transparency, and no tax on
dividends). Our results show significant share price reactions to unexpected earnings and dividend changes, but dividends
appear to play a dominant role over earnings in pricing, a result contrary to findings in the literature. The signaling hypothesis
works primarily for firms with earning increases, while the maturity hypothesis works mainly for firms with earnings declines.
相似文献
Tak Yan LeungEmail: |
8.
We condition security price reactions to quarterly earnings announcements on whether firms disclose supplementary balance
sheet and/or cashflow information that can be used to estimate the consequences of earnings management. Disclosure of supplementary
information is voluntary, and thus, we consider the possibility that firms that disclose balance sheet and/or cashflow information
differ systematically from firms that do not disclose. Results indicate that investors discount evidence of earnings management
at the disclosure date when supplementary information is disclosed. Such results indicate more informed earnings interpretations
of quarterly earnings when firms provide balance sheet and/or cashflow information concurrently.
相似文献
William R. BaberEmail: |
9.
James S. Linck Thomas J. Lopez Lynn Rees 《Review of Quantitative Finance and Accounting》2007,28(4):327-352
Firm management typically claims that voluntary accounting method changes (VACs) are made to enhance the informativeness of
earnings by better matching accounting practices with economic reality. In contrast, skeptics argue that managers adopt new
accounting procedures to opportunistically manage earnings and influence their firm’s stock price. In this paper, we investigate
these alternative motives for VACs. Specifically, we investigate whether VACs cause equity prices to deviate from their fundamental
values in the short-term by studying the long-run stock-price performance for a sample of firms that voluntarily change accounting
methods. In addition, we investigate changes in earnings informativeness by examining the behavior of earning response coefficients
and the relationship between earnings and future cash flows in years surrounding the VAC event. In contrast to prior research,
we find little evidence that a strategy based solely on the earnings effect of a VAC can generate abnormal returns. While
we find weak evidence of post-VAC abnormal returns for extreme VACs, this result appears to be driven by the accruals anomaly
documented in Sloan [Sloan, R. G. (1996). The Accounting Review, 71, 289–315]. Our evidence further suggests that earnings informativeness is not significantly altered by voluntary changes
in accounting methods. Taken together, our evidence suggests the market recognizes the financial statement effects of alternative
acceptable accounting methods and efficiently processes the valuation implications of VACs.
相似文献
Lynn Rees (Corresponding author)Email: |
10.
Our study analyzes market reaction to the entire content of a large sample of analysts’ reports from the period 2002 to 2004
for the German market. In particular, we explore whether the three summary measures in the reports, i.e., recommendation revisions,
earnings forecast revisions, and target price forecast revisions are acknowledged by the market. Additionally, we investigate
if stated justifications in the written text of analysts’ reports contain information value beyond the three summary measures.
We find that earnings forecast revisions and target price forecast revisions contain valuable information, both unconditionally
and conditional on the rest of the information in the report. Our findings also reveal that justifications made by analysts
are of high salience to market participants. These justifications provide valuable information, both unconditionally and conditional
on all other types of information in a report. Our findings also suggest that business ties between banks and the analyzed
companies do not affect market reaction to dissemination of an analysts’ report.
相似文献
Andreas Walter (Corresponding author)Email: |
11.
William H. Beaver Maureen F. McNichols Karen K. Nelson 《Review of Accounting Studies》2007,12(4):525-556
We show that the asymmetric effects of income taxes and special items for profit and loss firms contribute to a discontinuity
at zero in the distribution of earnings. Income taxes draw profit observations towards zero while negative special items pull
loss observations away from zero. These earnings components are thus expected to contribute to a discontinuity even in the
absence of discretion. We show our results are not an artifact of deflation and that other common components of earnings do
not have similar effects on the earnings distribution around zero.
相似文献
Karen K. NelsonEmail: |
12.
Firm diversification and earnings management: evidence from seasoned equity offerings 总被引:4,自引:3,他引:1
Chee Yeow Lim Tiong Yang Thong David K. Ding 《Review of Quantitative Finance and Accounting》2008,30(1):69-92
Popular press suggests that diversified firms are more aggressive in managing earnings than non-diversified firms. We examine
this claim in the seasoned equity offering (SEO) setting, where firms have been shown to have the incentive to manage earnings
upwards. Using the cross-sectional modified Jones [(1991) J Accounting Res 29:193–228] model to measure discretionary current accruals, we find that discretionary current accruals
are higher among diversified firms than in non-diversified ones. Our evidence is consistent with the view that the extent
of firm diversification is directly related to the degree of earnings management. We further show that diversified issuers
with high discretionary accruals underperformed other SEO firms.
相似文献
David K. DingEmail: |
13.
Value relevance of value-at-risk disclosure 总被引:2,自引:2,他引:0
Chee Yeow Lim Patricia Mui-Siang Tan 《Review of Quantitative Finance and Accounting》2007,29(4):353-370
The SEC issued FRR No. 48 in 1997 to enhance public disclosure of firms’ exposures to market risk. We examine whether the
quantitative value-at-risk (VAR) estimates disclosed by 81 non-financial firms during the period 1997–2002 are value-relevant
using the earnings-returns relation. The empirical results indicate that high VAR is associated with weaker earnings-returns
relation. Further analysis shows that VAR is positively and significantly associated with future stock return volatility.
Our evidence suggests that investors perceive the earnings of firms with substantial market risk exposure to be less persistent,
and adjust the future abnormal earnings for the higher risk exposure. Thus, this results in a lower expected rate of return.
相似文献
Chee Yeow LimEmail: |
14.
We find no evidence of accrual mispricing for firms that disclose accrual information at earnings announcements. For these
firms, the market differentiates the discretionary from the nondiscretionary components of the earnings surprise. In contrast,
the market fails to distinguish between the discretionary and the nondiscretionary components of the earnings surprise for
firms that do not disclose accrual information at earnings announcements. These firms experience some stock price correction
around the filing date. However, the correction is only partial, resulting in a post-filing drift.
相似文献
Henock LouisEmail: |
15.
Hemang Desai Srinivasan Krishnamurthy Kumar Venkataraman 《Review of Accounting Studies》2006,11(1):71-90
We study the behavior of short sellers around earnings restatements. We find that short sellers accumulate positions in restating
firms several months in advance of the restatement and subsequently unwind these positions after the drop in share price induced
by the restatement. The increase in short interest is larger for firms with high levels of accruals prior to restatement.
We document that heavily shorted firms experience poor subsequent performance and a higher rate of delisting. Overall, these
results suggest that the motive for short selling is, at least in part, related to suspect financial reporting and that short
sellers pay attention to information being conveyed by accruals.
相似文献
Hemang DesaiEmail: Phone: +1-214-768-3185 |
16.
Experimental evidence of how prior experience as an auditor influences managers’ strategic reporting decisions 总被引:1,自引:0,他引:1
Kendall O. Bowlin Jeffrey Hales Steven J. Kachelmeier 《Review of Accounting Studies》2009,14(1):63-87
We design an experiment to examine the influence of audit experience on subsequent reporting decisions when auditors become
managers of audited firms. In contrast to the independence issues that can arise when auditors and their clients are related
by prior affiliation, we focus this study on the more common case in which auditors assume subsequent employment with other firms’ clients. In a bi-matrix experimental game that captures key features of the strategic tension between auditors and
reporters, we find that reporters who have prior experience as an auditor, particularly the experience of having been a diligent
auditor, are more sensitive to large penalties for aggressive reporting than are reporters whose experience is exclusively
as a reporter. Our results suggest implications for regulators in predicting the effects of reporting penalties and for firms
in considering the effects of CPA experience when hiring for reporting positions.
相似文献
Steven J. Kachelmeier (Corresponding author)Email: |
17.
Landsman and Maydew (J Acc Res 40:797–808, 2002) document that the information content of earnings announcements has increased
over the past three decades, and Francis et al. (Acc Rev, 77:515–546, 2002) conclude that expanded concurrent disclosures
in firms’ earnings announcements, especially the inclusion of detailed income statements, explain this increase. We posit
and find that the temporal increase in the intensity of the market’s reaction to Street earnings offers a competing explanation
for the Landsman and Maydew finding. We also find that expanded concurrent disclosure of GAAP-based information contributes
to the temporal increase in the information content of earnings announcements. However, unlike Francis et al., we find that
the temporal increase in concurrent balance sheet and cash flow statement information dominates concurrent income statement
information once we control for Street earnings.
相似文献
Hong XieEmail: |
18.
The association between audit committees,compensation incentives,and corporate audit fees 总被引:4,自引:3,他引:1
This study uses audit fee data from the 2001–2003 reporting periods to examine the relationship between measures of audit
committee effectiveness and compensation incentives with corporate audit fees. Our results suggest that audit committee size,
committee member expertise, and committee member independence are positively associated to audit fee levels, consistent with
the notion that audit committees serve as a complement to external auditors in monitoring management. In contrast, CEO long-term
pay and insider ownership are inversely related to audit fee levels, substituting for external audit effort in motivating
management. Notwithstanding results on the full sample of firm-years, we uncover significant differences in the determinants
of audit fees between the years examined. An important implication of these results is that explaining the intra-firm variation
in audit fees over time is clearly necessary in order to understand the antecedents and consequences of audit fees.
相似文献
James F. Waegelein (Corresponding author)Email: |
19.
An empirical assessment of the premium associated with meeting or beating both time-series earnings expectations and analysts’ forecasts 总被引:2,自引:2,他引:0
Nicholas Dopuch Chandra Seethamraju Weihong Xu 《Review of Quantitative Finance and Accounting》2008,31(2):147-166
Recent research provides evidence of a market premium accruing to firms that meet or beat analysts’ forecasts. We find similar
results for our sample of firms. However, we also find a market premium for firms that meet or beat time-series forecasts,
and that the highest market premium accrued to firms that meet or beat both analysts’ and time-series forecasts. These findings
are supported by assessments of future financial performance over the next two subsequent years. Our findings are consistent
with the notion that when time-series benchmark is used in conjunction with analysts’ forecasts, investors obtain a more reliable
(i.e., less noisy) signal regarding whether firms have actually met or beaten market expectations.
相似文献
Weihong Xu (Corresponding author)Email: |
20.
Marcel Naujoks Kevin Aretz Alexander G. Kerl Andreas Walter 《Financial Markets and Portfolio Management》2009,23(1):3-29
We employ an innovative methodology suggested by Bernhardt et al. (J. Financ. Econ. 80:657–675, 2006) to examine the herding (or anti-herding) behavior of German analysts regarding earnings forecasts. This methodology avoids
well-known shortcomings often encountered in related studies, such as correlated information signals, unexpected common shocks
to earnings, systematic optimism or pessimism, or forecast target mismeasurement. Our findings suggest that German analysts
anti-herd, that is, they systematically issue earnings forecasts that are further away from the consensus forecast than their
private information indicates. Furthermore, we analyze the association between herding behavior and different characteristics,
including the size of the brokerage, general or firm-specific experience, and the coverage of firms on the Neuer Markt. We mainly confirm findings for the United States, for example, that anti-herding is more severe in cases of higher competition
among analysts. Contrary to anecdotal evidence, we also find anti-herding behavior in earnings forecasts for Neuer Markt firms during the “new economy” bubble.
相似文献
Andreas Walter (Corresponding author)Email: |