首页 > 最新文献

Journal of Business Finance & Accounting最新文献

英文 中文
Beyond Industry Boundaries: Impact of Auditors’ Related Industry Knowledge on Audit Quality and Audit Fees 超越行业界限:审计师相关行业知识对审计质量和审计费用的影响
IF 2.4 3区 管理学 Q2 BUSINESS, FINANCE Pub Date : 2025-10-27 DOI: 10.1111/jbfa.70017
Hsin-Chi Chen, Hsihui Chang, Jengfang Chen, Rong-Ruey Duh, Yaou Zhou

We examine whether auditors’ knowledge of clients’ related industries impacts audit quality and audit fees. Identifying related industries based on the Input–Output “Use Table” from the Bureau of Economic Analysis, we construct an absolute, nonrelative measure to capture auditors’ knowledge in their clients’ related industries. Our results show that a greater level of knowledge in related industries is associated with higher audit quality and lower audit fees after controlling for the auditor's expertise (specialization) in the client's industry. Further analyses indicate that the quality effects are more salient for an auditor who is not an expert in the client's industry, whereas the fee effects are prevalent across focal client engagements. The evidence suggests that non-specialist auditors’ cross-industry knowledge developed via economic links can, to some extent, substitute for specialization in the client industry. In view of advanced technologies that spur increasing interdependence between industries, our findings deliver an important message: Auditors can improve audit efficiency and offer higher quality audits by expanding economies of scope and leveraging their knowledge across clients’ interrelated industries.

我们考察了审计师对客户相关行业的了解是否会影响审计质量和审计费用。根据美国经济分析局(Bureau of Economic Analysis)的投入产出“使用表”(Input-Output“Use Table”)确定相关行业,我们构建了一个绝对的、非相对的衡量标准,以捕捉审计师在其客户的相关行业中的知识。我们的研究结果表明,在控制了审计师在客户行业的专业知识(专业化)后,相关行业的更高知识水平与更高的审计质量和更低的审计费用相关。进一步的分析表明,对于不是客户行业专家的审计师来说,质量影响更为显著,而费用影响则普遍存在于重点客户业务中。证据表明,非专业审计师通过经济联系积累的跨行业知识,在一定程度上可以替代客户行业的专业化。鉴于先进的技术促进了行业之间的相互依赖,我们的研究结果传递了一个重要的信息:审计师可以通过扩大范围经济和利用他们在客户相关行业的知识来提高审计效率并提供更高质量的审计。
{"title":"Beyond Industry Boundaries: Impact of Auditors’ Related Industry Knowledge on Audit Quality and Audit Fees","authors":"Hsin-Chi Chen,&nbsp;Hsihui Chang,&nbsp;Jengfang Chen,&nbsp;Rong-Ruey Duh,&nbsp;Yaou Zhou","doi":"10.1111/jbfa.70017","DOIUrl":"https://doi.org/10.1111/jbfa.70017","url":null,"abstract":"<div>\u0000 \u0000 <p>We examine whether auditors’ knowledge of clients’ related industries impacts audit quality and audit fees. Identifying related industries based on the Input–Output “Use Table” from the Bureau of Economic Analysis, we construct an absolute, nonrelative measure to capture auditors’ knowledge in their clients’ related industries. Our results show that a greater level of knowledge in related industries is associated with higher audit quality and lower audit fees after controlling for the auditor's expertise (specialization) in the client's industry. Further analyses indicate that the quality effects are more salient for an auditor who is not an expert in the client's industry, whereas the fee effects are prevalent across focal client engagements. The evidence suggests that non-specialist auditors’ cross-industry knowledge developed via economic links can, to some extent, substitute for specialization in the client industry. In view of advanced technologies that spur increasing interdependence between industries, our findings deliver an important message: Auditors can improve audit efficiency and offer higher quality audits by expanding economies of <i>scope</i> and leveraging their knowledge across clients’ interrelated industries.</p>\u0000 </div>","PeriodicalId":48106,"journal":{"name":"Journal of Business Finance & Accounting","volume":"53 1","pages":"266-296"},"PeriodicalIF":2.4,"publicationDate":"2025-10-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146155128","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 0
Crashing in the Dark? Dark Trading and Stock Price Crashes 在黑暗中崩溃?暗交易和股价暴跌
IF 2.4 3区 管理学 Q2 BUSINESS, FINANCE Pub Date : 2025-10-21 DOI: 10.1111/jbfa.70016
Bidisha Chakrabarty, Kenneth W. Shaw, Xu (Frank) Wang

Equity trading volume is increasingly moving from stock exchanges to off-exchange dark venues. Theory provides opposing predictions about the association between dark trading and stock price crash risk. Arbitrage cost arguments predict a positive relation, whereas the price efficiency theory predicts a negative relation. Our results support the former: Dark trading significantly increases stock price crash risk. This result is economically meaningful and robust to using an exogenous shock to dark trading to address endogeneity concerns. Further, in the weeks of and after a stock price crash, abnormal trading volume and trade size increase on dark venues, and this effect is greater for stocks with higher institutional ownership and worse earnings news in the crash week. In sum, this study introduces a novel feature, extreme negative stock returns from dark pool trading, and also contributes to a nascent literature on the consequences of stock price crashes. Our results also have potential regulatory implications: By facilitating the separation of informed and uninformed traders, dark markets incentivize managerial withholding of bad news, which increases stock price crash risk.

股票交易量正越来越多地从证券交易所转移到交易所外的暗交易场所。理论对暗交易与股价崩盘风险之间的关系给出了相反的预测。套利成本理论预测两者呈正相关,而价格效率理论预测两者呈正相关。我们的研究结果支持前者:暗交易显著增加股价崩盘风险。这一结果对于使用外生冲击来解决暗交易的内生性问题具有经济意义和鲁棒性。此外,在股价崩盘前和崩盘后的几周内,暗场的异常交易量和交易规模增加,而且对于机构持股比例较高、崩盘周收益消息较差的股票,这种影响更大。总而言之,本研究引入了一个新特征,即黑池交易的极端负股票收益,并为股票价格暴跌的后果提供了新的文献。我们的研究结果也具有潜在的监管意义:通过促进知情和不知情交易者的分离,暗市场激励管理层隐瞒坏消息,这增加了股价崩溃的风险。
{"title":"Crashing in the Dark? Dark Trading and Stock Price Crashes","authors":"Bidisha Chakrabarty,&nbsp;Kenneth W. Shaw,&nbsp;Xu (Frank) Wang","doi":"10.1111/jbfa.70016","DOIUrl":"https://doi.org/10.1111/jbfa.70016","url":null,"abstract":"<div>\u0000 \u0000 <p>Equity trading volume is increasingly moving from stock exchanges to off-exchange dark venues. Theory provides opposing predictions about the association between dark trading and stock price crash risk. <i>Arbitrage cost</i> arguments predict a positive relation, whereas the <i>price efficiency</i> theory predicts a negative relation. Our results support the former: Dark trading significantly increases stock price crash risk. This result is economically meaningful and robust to using an exogenous shock to dark trading to address endogeneity concerns. Further, in the weeks of and after a stock price crash, abnormal trading volume and trade size increase on dark venues, and this effect is greater for stocks with higher institutional ownership and worse earnings news in the crash week. In sum, this study introduces a novel feature, extreme negative stock returns from dark pool trading, and also contributes to a nascent literature on the consequences of stock price crashes. Our results also have potential regulatory implications: By facilitating the separation of informed and uninformed traders, dark markets incentivize managerial withholding of bad news, which increases stock price crash risk.</p>\u0000 </div>","PeriodicalId":48106,"journal":{"name":"Journal of Business Finance & Accounting","volume":"53 1","pages":"243-265"},"PeriodicalIF":2.4,"publicationDate":"2025-10-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146154568","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 0
Top Management Team Finance Education: Implications for Stock Price Synchronicity and Crash Risk 高层管理团队财务教育:对股价同步性与崩盘风险的影响
IF 2.4 3区 管理学 Q2 BUSINESS, FINANCE Pub Date : 2025-10-06 DOI: 10.1111/jbfa.70015
Xuan-Qi Su

Based on a dataset of listed Taiwanese firms spanning 2006–2023, this study documents a robust negative association between the presence of top management team members with finance-related education (MFE) and both stock price synchronicity and crash risk. These effects persist after robustness checks and controls for endogeneity. Furthermore, these negative associations are particularly pronounced in firms led by finance-educated executives with undergraduate degrees or elite educational credentials, and in settings with weak external monitoring—specifically, low analyst coverage, sparse media exposure, and minimal institutional ownership. Mediation analysis reveals that high-MFE firms exhibit superior information disclosure quality. The overall findings support the “dual substantive and symbolic functions” hypothesis: Firms with a higher proportion of finance-educated executives—whether driven by substantive intent or symbolic signaling—more effectively direct investor attention toward firm-specific information, thereby improving disclosure quality and reducing stock price synchronicity and crash risk. This study contributes to the literature by identifying MFE’s attention-directing role and its broader implications for information efficiency in capital markets.

本研究以2006年至2023年的台湾上市公司为研究对象,发现高层管理团队成员接受财务相关教育与股价同步性和崩盘风险之间存在显著负相关关系。在鲁棒性检查和内生性控制之后,这些影响仍然存在。此外,这些负面关联在由受过金融教育、拥有本科学位或精英教育证书的高管领导的公司中尤其明显,在外部监督薄弱的环境中——特别是分析师覆盖率低、媒体曝光率低、机构所有权最小。中介分析表明,高负债企业的信息披露质量更优。总体研究结果支持“实质性和象征性双重功能”假说:受过金融教育的高管比例较高的公司——无论是受到实质性意图还是象征性信号的驱动——更有效地将投资者的注意力引导到公司特定信息上,从而提高披露质量,降低股价同步性和崩盘风险。本研究通过确定MFE的注意力导向作用及其对资本市场信息效率的更广泛影响,为文献做出了贡献。
{"title":"Top Management Team Finance Education: Implications for Stock Price Synchronicity and Crash Risk","authors":"Xuan-Qi Su","doi":"10.1111/jbfa.70015","DOIUrl":"https://doi.org/10.1111/jbfa.70015","url":null,"abstract":"<div>\u0000 \u0000 <p>Based on a dataset of listed Taiwanese firms spanning 2006–2023, this study documents a robust negative association between the presence of top management team members with finance-related education (<i>MFE</i>) and both stock price synchronicity and crash risk. These effects persist after robustness checks and controls for endogeneity. Furthermore, these negative associations are particularly pronounced in firms led by finance-educated executives with undergraduate degrees or elite educational credentials, and in settings with weak external monitoring—specifically, low analyst coverage, sparse media exposure, and minimal institutional ownership. Mediation analysis reveals that high-<i>MFE</i> firms exhibit superior information disclosure quality. The overall findings support the “dual substantive and symbolic functions” hypothesis: Firms with a higher proportion of finance-educated executives—whether driven by substantive intent or symbolic signaling—more effectively direct investor attention toward firm-specific information, thereby improving disclosure quality and reducing stock price synchronicity and crash risk. This study contributes to the literature by identifying <i>MFE</i>’s attention-directing role and its broader implications for information efficiency in capital markets.</p>\u0000 </div>","PeriodicalId":48106,"journal":{"name":"Journal of Business Finance & Accounting","volume":"53 1","pages":"207-242"},"PeriodicalIF":2.4,"publicationDate":"2025-10-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146162327","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 0
Divisional Managers and Corporate Disclosure Quality
IF 2.4 3区 管理学 Q2 BUSINESS, FINANCE Pub Date : 2025-09-26 DOI: 10.1111/jbfa.70013
Zhaoran (Jason) Gong, Lixin (Nancy) Su, Fujing Xue, Cheng (Colin) Zeng

Using a large sample of US firms, we study the role of divisional managers in corporate disclosure quality. We find that when a company's divisional managers have previously worked with the chief executive officer (CEO) or chief financial officer (CFO) at other companies, in other words, they have co-working experience, the company produces more accurate management earnings forecasts, experiences lower future stock price crash risks, and engages in less accrual-based earnings management, consistent with the notion that co-working experience facilitates internal communication, which, in turn, improves external disclosure quality. Moreover, the information-enhancing role of the co-working experience is more pronounced for firms with greater organizational complexity, more opaque internal information environments, and CEOs or CFOs who are relatively new to their positions. Overall, our results provide new insight into the role of divisional managers in shaping corporate disclosure and transparency.

{"title":"Divisional Managers and Corporate Disclosure Quality","authors":"Zhaoran (Jason) Gong,&nbsp;Lixin (Nancy) Su,&nbsp;Fujing Xue,&nbsp;Cheng (Colin) Zeng","doi":"10.1111/jbfa.70013","DOIUrl":"https://doi.org/10.1111/jbfa.70013","url":null,"abstract":"<div>\u0000 \u0000 <p>Using a large sample of US firms, we study the role of divisional managers in corporate disclosure quality. We find that when a company's divisional managers have previously worked with the chief executive officer (CEO) or chief financial officer (CFO) at other companies, in other words, they have co-working experience, the company produces more accurate management earnings forecasts, experiences lower future stock price crash risks, and engages in less accrual-based earnings management, consistent with the notion that co-working experience facilitates internal communication, which, in turn, improves external disclosure quality. Moreover, the information-enhancing role of the co-working experience is more pronounced for firms with greater organizational complexity, more opaque internal information environments, and CEOs or CFOs who are relatively new to their positions. Overall, our results provide new insight into the role of divisional managers in shaping corporate disclosure and transparency.</p>\u0000 </div>","PeriodicalId":48106,"journal":{"name":"Journal of Business Finance & Accounting","volume":"53 1","pages":"181-206"},"PeriodicalIF":2.4,"publicationDate":"2025-09-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146176547","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 0
Shifting Away the Pressure: How Does Local Air Quality Induce Pollution-Driven Acquisitions? 转移压力:当地空气质量如何引发污染驱动的收购?
IF 2.4 3区 管理学 Q2 BUSINESS, FINANCE Pub Date : 2025-09-18 DOI: 10.1111/jbfa.70014
Zeyu Sun, Ge Yang, Xiaojia Zheng, Yue Yin

This paper examines the impact of local air quality on firms’ acquisition decisions. We find that polluting firms in areas with better air quality are more likely to acquire targets in more polluted areas. We show that regulatory pressure, normative pressure, and organizational legitimacy concerns are three possible channels through which local air quality influences polluting firms’ acquisition decisions. Meanwhile, firms are more inclined to undertake pollution-driven acquisitions when they are financially capable of doing so or when they cannot alleviate the pressure via environmentally responsible ways. Moreover, the presence of foreign institutional investors and the Covid-19 pandemic attenuate the impact of local air quality on polluting firms’ acquisition decisions. In addition, firms conducting pollution-driven acquisitions experience negative short-term market reactions and unfavorable long-term performance in profitability and productivity but receive higher subsidies from the local government after the pollution-driven acquisitions. Our results suggest that polluting firms engage in acquisitions to shift the environmental legitimacy pressure away.

本文考察了当地空气质量对企业收购决策的影响。我们发现,空气质量较好的地区的污染企业更有可能在污染较严重的地区获得目标。研究表明,监管压力、规范压力和组织合法性担忧是当地空气质量影响污染企业收购决策的三个可能渠道。与此同时,当企业有财务能力或无法通过对环境负责的方式减轻压力时,它们更倾向于进行污染驱动型收购。此外,外国机构投资者的存在和新冠肺炎疫情减弱了当地空气质量对污染企业收购决策的影响。此外,进行污染驱动型收购的企业在短期内会经历负面的市场反应,在盈利能力和生产率方面的长期表现也不佳,但在污染驱动型收购后,企业从地方政府获得了更高的补贴。我们的研究结果表明,污染企业通过收购来转移环境合法性压力。
{"title":"Shifting Away the Pressure: How Does Local Air Quality Induce Pollution-Driven Acquisitions?","authors":"Zeyu Sun,&nbsp;Ge Yang,&nbsp;Xiaojia Zheng,&nbsp;Yue Yin","doi":"10.1111/jbfa.70014","DOIUrl":"https://doi.org/10.1111/jbfa.70014","url":null,"abstract":"<div>\u0000 \u0000 <p>This paper examines the impact of local air quality on firms’ acquisition decisions. We find that polluting firms in areas with better air quality are more likely to acquire targets in more polluted areas. We show that regulatory pressure, normative pressure, and organizational legitimacy concerns are three possible channels through which local air quality influences polluting firms’ acquisition decisions. Meanwhile, firms are more inclined to undertake pollution-driven acquisitions when they are financially capable of doing so or when they cannot alleviate the pressure via environmentally responsible ways. Moreover, the presence of foreign institutional investors and the Covid-19 pandemic attenuate the impact of local air quality on polluting firms’ acquisition decisions. In addition, firms conducting pollution-driven acquisitions experience negative short-term market reactions and unfavorable long-term performance in profitability and productivity but receive higher subsidies from the local government after the pollution-driven acquisitions. Our results suggest that polluting firms engage in acquisitions to shift the environmental legitimacy pressure away.</p>\u0000 </div>","PeriodicalId":48106,"journal":{"name":"Journal of Business Finance & Accounting","volume":"53 1","pages":"150-180"},"PeriodicalIF":2.4,"publicationDate":"2025-09-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146162635","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 0
Long-Run Stock Returns Following Internal Control Disclosures 内部控制披露后的长期股票回报
IF 2.4 3区 管理学 Q2 BUSINESS, FINANCE Pub Date : 2025-09-16 DOI: 10.1111/jbfa.70012
Al (Aloke) Ghosh, Seppo Ikäheimo, Emma-Riikka Myllymäki, Jukka Sihvonen

We investigate whether investors underreact to material weakness disclosures in internal controls, leading to a subsequent negative stock return drift. Using SOX Section 302 disclosures (2007–2023), we find negligible market reaction around announcement dates but document economically large negative drift over the following two quarters, representing approximately 10%–16% annualized underperformance. This negative drift survives risk-based explanations, the post-earnings-announcement drift, and other anomalies linked to accruals, momentum, distress risk, and penny stocks. Additional results indicate that the mispricing is confined to firms with low institutional ownership. We offer a behavioral explanation: investors fail to incorporate differences in conditional (79%) and unconditional (6%) probabilities of subsequent material weaknesses. Following material weakness announcements, the negative drift in returns arises as investors gradually revise their expectations about the persistence of internal control problems. Our results provide a plausible alternative explanation for the puzzling weak stock market reaction to internal control disclosures.

我们调查投资者是否对内部控制的重大弱点披露反应不足,导致随后的负股票回报漂移。根据SOX 302条款披露的信息(2007-2023),我们发现在公告日期前后的市场反应可以忽略不计,但在接下来的两个季度中,经济上出现了较大的负面波动,年化表现落后约10%-16%。这种负漂移经受住了基于风险的解释、收益公布后漂移以及其他与应计利润、动量、困境风险和低价股相关的异常现象的影响。另外的研究结果表明,错误定价仅限于低机构所有权的公司。我们提供了一种行为解释:投资者没有考虑到后续重大弱点的条件(79%)和无条件(6%)概率的差异。在宣布重大疲软之后,随着投资者逐渐修正他们对内部控制问题持续存在的预期,回报出现负漂移。我们的研究结果为令人困惑的股票市场对内部控制披露的弱反应提供了一个合理的替代解释。
{"title":"Long-Run Stock Returns Following Internal Control Disclosures","authors":"Al (Aloke) Ghosh,&nbsp;Seppo Ikäheimo,&nbsp;Emma-Riikka Myllymäki,&nbsp;Jukka Sihvonen","doi":"10.1111/jbfa.70012","DOIUrl":"https://doi.org/10.1111/jbfa.70012","url":null,"abstract":"<p>We investigate whether investors underreact to material weakness disclosures in internal controls, leading to a subsequent negative stock return drift. Using SOX Section 302 disclosures (2007–2023), we find negligible market reaction around announcement dates but document economically large negative drift over the following two quarters, representing approximately 10%–16% annualized underperformance. This negative drift survives risk-based explanations, the post-earnings-announcement drift, and other anomalies linked to accruals, momentum, distress risk, and penny stocks. Additional results indicate that the mispricing is confined to firms with low institutional ownership. We offer a behavioral explanation: investors fail to incorporate differences in conditional (79%) and unconditional (6%) probabilities of subsequent material weaknesses. Following material weakness announcements, the negative drift in returns arises as investors gradually revise their expectations about the persistence of internal control problems. Our results provide a plausible alternative explanation for the puzzling weak stock market reaction to internal control disclosures.</p>","PeriodicalId":48106,"journal":{"name":"Journal of Business Finance & Accounting","volume":"53 1","pages":"131-149"},"PeriodicalIF":2.4,"publicationDate":"2025-09-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/jbfa.70012","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146155008","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 0
Strategic Alignment Between Supply Chain Partners and Supplier Audit Fees 供应链合作伙伴之间的战略一致性和供应商审计费用
IF 2.4 3区 管理学 Q2 BUSINESS, FINANCE Pub Date : 2025-09-15 DOI: 10.1111/jbfa.70011
Hsihui Chang, Rong-Ruey Duh, W. Robert Knechel, Sheng Liu

This study examines whether strategic alignment between participants in the same supply chain is associated with supplier audit fees. We hypothesize that strategic alignment between suppliers and customers can mitigate the business and audit risk associated with auditing a supplier firm, which will be associated with lower audit fees. We utilize disclosures about major customers to construct a dataset of supplier–customer dyads and then compare the relative strategies of the two parties. The empirical results support our hypothesis that strategic alignment between suppliers and their major customers is associated with lower audit fees for the supplier. We also find that the negative association between strategic alignment and supplier audit fees is more pronounced when auditors are industry specialists. Our results remain robust when using alternative measures of strategic alignment, testing for functional form misspecification, and addressing potential endogeneity.

本研究考察了同一供应链参与者之间的战略结盟是否与供应商审计费用有关。我们假设供应商和客户之间的战略结盟可以减轻与审计供应商公司相关的业务和审计风险,这将与较低的审计费用相关。我们利用对主要客户的披露来构建供应商-客户二元数据集,然后比较双方的相关策略。实证结果支持我们的假设,即供应商与其主要客户之间的战略结盟与供应商较低的审计费用有关。我们还发现,当审计师是行业专家时,战略一致性与供应商审计费用之间的负相关关系更为明显。当使用战略一致性的替代措施,测试功能形式的错误规范,并解决潜在的内质性时,我们的结果仍然是稳健的。
{"title":"Strategic Alignment Between Supply Chain Partners and Supplier Audit Fees","authors":"Hsihui Chang,&nbsp;Rong-Ruey Duh,&nbsp;W. Robert Knechel,&nbsp;Sheng Liu","doi":"10.1111/jbfa.70011","DOIUrl":"https://doi.org/10.1111/jbfa.70011","url":null,"abstract":"<div>\u0000 \u0000 <p>This study examines whether strategic alignment between participants in the same supply chain is associated with supplier audit fees. We hypothesize that strategic alignment between suppliers and customers can mitigate the business and audit risk associated with auditing a supplier firm, which will be associated with lower audit fees. We utilize disclosures about major customers to construct a dataset of supplier–customer dyads and then compare the relative strategies of the two parties. The empirical results support our hypothesis that strategic alignment between suppliers and their major customers is associated with lower audit fees for the supplier. We also find that the negative association between strategic alignment and supplier audit fees is more pronounced when auditors are industry specialists. Our results remain robust when using alternative measures of strategic alignment, testing for functional form misspecification, and addressing potential endogeneity.</p>\u0000 </div>","PeriodicalId":48106,"journal":{"name":"Journal of Business Finance & Accounting","volume":"53 1","pages":"107-130"},"PeriodicalIF":2.4,"publicationDate":"2025-09-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146162615","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 0
Forward-Looking Statements and Investor Trading 前瞻性声明和投资者交易
IF 2.4 3区 管理学 Q2 BUSINESS, FINANCE Pub Date : 2025-09-10 DOI: 10.1111/jbfa.70010
Jing-Chi Chen, Pankaj K Jain, Sabatino (Dino) Silveri

We conduct textual analysis on 10-K and 10-Q filings and find that forward-looking statements (FLS) associate with reductions in investor trading costs, driven largely by reductions in market-maker inventory costs. FLS also associate with increases in market depth on both sides of the bid–ask spread and increases in both retail and institutional investor trading activity. Importantly, retail investors are more responsive to FLS than institutional investors. Cross-sectional tests provide additional evidence with the associations being more pronounced during market downturns and in the absence of earnings guidance. The results are robust to instrumental variable regressions using managerial ability as an instrument. Overall, our results suggest that FLS reduce trading frictions mainly by reducing market-maker inventory costs, increasing market-maker competition via increased market depth and increasing investor trading activity, particularly from retail investors. Our results thus highlight the important role FLS play in trading activity, especially for retail investors.

我们对10-K和10-Q文件进行了文本分析,发现前瞻性陈述(FLS)与投资者交易成本的降低有关,这主要是由做市商库存成本的降低所驱动的。FLS还与买卖价差双方的市场深度增加以及散户和机构投资者交易活动的增加有关。重要的是,散户投资者对FLS的反应比机构投资者更敏感。横断面测试提供了额外的证据,表明在市场低迷和没有盈利指引的情况下,这种关联更为明显。结果是稳健的工具变量回归使用管理能力作为工具。总体而言,我们的研究结果表明,FLS减少交易摩擦主要是通过降低做市商库存成本,通过增加市场深度和增加投资者交易活动(尤其是散户投资者)来增加做市商竞争。因此,我们的研究结果突出了FLS在交易活动中发挥的重要作用,特别是对散户投资者而言。
{"title":"Forward-Looking Statements and Investor Trading","authors":"Jing-Chi Chen,&nbsp;Pankaj K Jain,&nbsp;Sabatino (Dino) Silveri","doi":"10.1111/jbfa.70010","DOIUrl":"https://doi.org/10.1111/jbfa.70010","url":null,"abstract":"<div>\u0000 \u0000 <p>We conduct textual analysis on 10-K and 10-Q filings and find that forward-looking statements (FLS) associate with reductions in investor trading costs, driven largely by reductions in market-maker inventory costs. FLS also associate with increases in market depth on both sides of the bid–ask spread and increases in both retail and institutional investor trading activity. Importantly, retail investors are more responsive to FLS than institutional investors. Cross-sectional tests provide additional evidence with the associations being more pronounced during market downturns and in the absence of earnings guidance. The results are robust to instrumental variable regressions using managerial ability as an instrument. Overall, our results suggest that FLS reduce trading frictions mainly by reducing market-maker inventory costs, increasing market-maker competition via increased market depth and increasing investor trading activity, particularly from retail investors. Our results thus highlight the important role FLS play in trading activity, especially for retail investors.</p>\u0000 </div>","PeriodicalId":48106,"journal":{"name":"Journal of Business Finance & Accounting","volume":"53 1","pages":"77-106"},"PeriodicalIF":2.4,"publicationDate":"2025-09-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146162641","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 0
Changes in Tax Footnote Disclosure Quality 税务脚注披露质量的变化
IF 2.4 3区 管理学 Q2 BUSINESS, FINANCE Pub Date : 2025-09-06 DOI: 10.1111/jbfa.70009
Thomas R. Kubick, Michael A. Mayberry

We examine trends in the disclosure quality of the income tax footnote for US firms in annual 10-K filings over the period 1996–2023. In contrast to claims by some practitioners and academics that the income tax footnote has become too complex, we document a marked increase in readability. Specifically, our results suggest that, while the quantity of textual disclosure in the income tax footnote has increased over time, the tax footnote has become more readable across several measures of readability. Changes in firm characteristics do not explain the improved trends in readability. We find some evidence suggesting that higher probabilities of IRS scrutiny and shareholder litigation attenuate, but do not reverse, the trends in readability. We also find that the language used in the income tax footnote has become more similar among industry peers over time. Finally, we show that improved tax footnote readability is associated with reduced dispersion in analyst tax forecasts, consistent with improvements in tax disclosure reaping capital market benefits.

我们研究了1996年至2023年期间美国公司年度10-K申报中所得税脚注披露质量的趋势。与一些从业者和学者声称所得税脚注变得过于复杂的说法相反,我们记录了可读性的显着提高。具体来说,我们的研究结果表明,虽然所得税脚注中的文本披露数量随着时间的推移而增加,但税收脚注在可读性的几个衡量标准中变得更具可读性。公司特征的变化并不能解释可读性的改善趋势。我们发现一些证据表明,IRS审查和股东诉讼的高概率减弱了可读性的趋势,但没有逆转。我们还发现,随着时间的推移,所得税注脚中使用的语言在行业同行中变得越来越相似。最后,我们表明,提高税务脚注可读性与分析师税收预测的分散性降低有关,这与税收披露的改善获得资本市场利益是一致的。
{"title":"Changes in Tax Footnote Disclosure Quality","authors":"Thomas R. Kubick,&nbsp;Michael A. Mayberry","doi":"10.1111/jbfa.70009","DOIUrl":"https://doi.org/10.1111/jbfa.70009","url":null,"abstract":"<div>\u0000 \u0000 <p>We examine trends in the disclosure quality of the income tax footnote for US firms in annual 10-K filings over the period 1996–2023. In contrast to claims by some practitioners and academics that the income tax footnote has become too complex, we document a marked increase in readability. Specifically, our results suggest that, while the quantity of textual disclosure in the income tax footnote has increased over time, the tax footnote has become more readable across several measures of readability. Changes in firm characteristics do not explain the improved trends in readability. We find some evidence suggesting that higher probabilities of IRS scrutiny and shareholder litigation attenuate, but do not reverse, the trends in readability. We also find that the language used in the income tax footnote has become more similar among industry peers over time. Finally, we show that improved tax footnote readability is associated with reduced dispersion in analyst tax forecasts, consistent with improvements in tax disclosure reaping capital market benefits.</p>\u0000 </div>","PeriodicalId":48106,"journal":{"name":"Journal of Business Finance & Accounting","volume":"53 1","pages":"53-76"},"PeriodicalIF":2.4,"publicationDate":"2025-09-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146154785","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 0
The Cost of Related Party Transactions and the Intensity of Related Party Transactions: Evidence From Creditor Rights Reform
IF 2.4 3区 管理学 Q2 BUSINESS, FINANCE Pub Date : 2025-08-19 DOI: 10.1111/jbfa.70007
Ranjeet Singh, Yogesh Chauhan, Nemiraja Jadiyappa

This study investigates whether an increase in the costs associated with related party transactions (RPTs) for controlling owners affects the volume of such transactions. We exploit the implementation of the Insolvency and Bankruptcy Code (IBC) in India in 2016 as a quasi-natural experiment that likely raised the costs of engaging in RPTs by strengthening creditor rights. Using a difference-in-differences design, we find that the enhanced enforcement environment following the IBC led to a significant decline in RPT activity by controlling shareholders. This decline is primarily driven by a reduction in opportunistic RPTs. Furthermore, the average market reaction to the IBC implementation is more pronounced for firms with higher pre-reform levels of opportunistic RPTs, consistent with investors valuing the curtailment of tunneling behavior.

{"title":"The Cost of Related Party Transactions and the Intensity of Related Party Transactions: Evidence From Creditor Rights Reform","authors":"Ranjeet Singh,&nbsp;Yogesh Chauhan,&nbsp;Nemiraja Jadiyappa","doi":"10.1111/jbfa.70007","DOIUrl":"https://doi.org/10.1111/jbfa.70007","url":null,"abstract":"<div>\u0000 \u0000 <p>This study investigates whether an increase in the costs associated with related party transactions (RPTs) for controlling owners affects the volume of such transactions. We exploit the implementation of the Insolvency and Bankruptcy Code (IBC) in India in 2016 as a quasi-natural experiment that likely raised the costs of engaging in RPTs by strengthening creditor rights. Using a difference-in-differences design, we find that the enhanced enforcement environment following the IBC led to a significant decline in RPT activity by controlling shareholders. This decline is primarily driven by a reduction in opportunistic RPTs. Furthermore, the average market reaction to the IBC implementation is more pronounced for firms with higher pre-reform levels of opportunistic RPTs, consistent with investors valuing the curtailment of tunneling behavior.</p>\u0000 </div>","PeriodicalId":48106,"journal":{"name":"Journal of Business Finance & Accounting","volume":"53 1","pages":"5-31"},"PeriodicalIF":2.4,"publicationDate":"2025-08-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146176375","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 0
期刊
Journal of Business Finance & Accounting
全部 Acc. Chem. Res. ACS Applied Bio Materials ACS Appl. Electron. Mater. ACS Appl. Energy Mater. ACS Appl. Mater. Interfaces ACS Appl. Nano Mater. ACS Appl. Polym. Mater. ACS BIOMATER-SCI ENG ACS Catal. ACS Cent. Sci. ACS Chem. Biol. ACS Chemical Health & Safety ACS Chem. Neurosci. ACS Comb. Sci. ACS Earth Space Chem. ACS Energy Lett. ACS Infect. Dis. ACS Macro Lett. ACS Mater. Lett. ACS Med. Chem. Lett. ACS Nano ACS Omega ACS Photonics ACS Sens. ACS Sustainable Chem. Eng. ACS Synth. Biol. Anal. Chem. BIOCHEMISTRY-US Bioconjugate Chem. BIOMACROMOLECULES Chem. Res. Toxicol. Chem. Rev. Chem. Mater. CRYST GROWTH DES ENERG FUEL Environ. Sci. Technol. Environ. Sci. Technol. Lett. Eur. J. Inorg. Chem. IND ENG CHEM RES Inorg. Chem. J. Agric. Food. Chem. J. Chem. Eng. Data J. Chem. Educ. J. Chem. Inf. Model. J. Chem. Theory Comput. J. Med. Chem. J. Nat. Prod. J PROTEOME RES J. Am. Chem. Soc. LANGMUIR MACROMOLECULES Mol. Pharmaceutics Nano Lett. Org. Lett. ORG PROCESS RES DEV ORGANOMETALLICS J. Org. Chem. J. Phys. Chem. J. Phys. Chem. A J. Phys. Chem. B J. Phys. Chem. C J. Phys. Chem. Lett. Analyst Anal. Methods Biomater. Sci. Catal. Sci. Technol. Chem. Commun. Chem. Soc. Rev. CHEM EDUC RES PRACT CRYSTENGCOMM Dalton Trans. Energy Environ. Sci. ENVIRON SCI-NANO ENVIRON SCI-PROC IMP ENVIRON SCI-WAT RES Faraday Discuss. Food Funct. Green Chem. Inorg. Chem. Front. Integr. Biol. J. Anal. At. Spectrom. J. Mater. Chem. A J. Mater. Chem. B J. Mater. Chem. C Lab Chip Mater. Chem. Front. Mater. Horiz. MEDCHEMCOMM Metallomics Mol. Biosyst. Mol. Syst. Des. Eng. Nanoscale Nanoscale Horiz. Nat. Prod. Rep. New J. Chem. Org. Biomol. Chem. Org. Chem. Front. PHOTOCH PHOTOBIO SCI PCCP Polym. Chem.
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
0
微信
客服QQ
Book学术公众号 扫码关注我们
反馈
×
意见反馈
请填写您的意见或建议
请填写您的手机或邮箱
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
现在去查看 取消
×
提示
确定
Book学术官方微信
Book学术文献互助
Book学术文献互助群
群 号:604180095
Book学术
文献互助 智能选刊 最新文献 互助须知 联系我们:info@booksci.cn
Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。
Copyright © 2023 Book学术 All rights reserved.
ghs 京公网安备 11010802042870号 京ICP备2023020795号-1