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Shaping Firms’ Financial Reporting: Evidence From the Spillover Effect of the FED’s Stress Test 塑造企业的财务报告:来自美国联邦储备委员会压力测试溢出效应的证据
Pub Date : 2024-02-21 DOI: 10.1177/0148558x241229510
Lanyi Yan Zhang, Ziyun Yang, Yu Bai, Lin Wang
This research investigates how bank regulation, specifically the stress test conducted by the Federal Reserve (FED), influences the financial reporting decisions of borrowers. Previous studies indicate that the FED’s stress test can lead to a reduction in credit supply and stricter lending standards for banks. Expanding on this body of literature, our study shows that the impact of the stress test reaches beyond lenders, prompting borrowers to embrace increased conditional conservatism in their financial reporting. This spillover effect is particularly pronounced for riskier borrowers. Our findings suggest a far-reaching impact of FED regulation on firms’ financial reporting choices. Further analysis indicates that borrowers transitioning from tested banks to untested banks experience higher interest rates following the stress test, highlighting an extended spillover effect on borrowers.
本研究调查了银行监管,特别是美联储(FED)进行的压力测试如何影响借款人的财务报告决策。以往的研究表明,美联储的压力测试会导致信贷供应减少,银行的贷款标准更加严格。在此基础上,我们的研究表明,压力测试的影响超出了贷款人的范围,促使借款人在财务报告中采取更多的有条件保守主义。这种溢出效应对风险较高的借款人尤为明显。我们的研究结果表明,美国联邦储备委员会的监管对企业的财务报告选择影响深远。进一步的分析表明,从接受测试的银行过渡到未接受测试的银行的借款人在压力测试后会经历更高的利率,这凸显了对借款人的溢出效应。
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引用次数: 0
Can Corporate Social Responsibility Counteract Managers’ Incentives to Manage Earnings? 企业社会责任能否抵消管理者管理盈余的动机?
Pub Date : 2022-07-21 DOI: 10.1177/0148558x221110672
Christopher P. Agoglia, Cathy A. Beaudoin, Stephen Kuselias, George T. Tsakumis
Many firms engage in corporate social responsibility (CSR) initiatives, which aim to serve a broader set of stakeholders (e.g., workforce, communities, environment). These companies often encourage...
许多公司参与企业社会责任(CSR)倡议,其目的是服务于更广泛的利益相关者(例如,劳动力,社区,环境)。这些公司经常鼓励……
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引用次数: 0
Do Mutual Funds Trade on Earnings News? The Information Content of Large Active Trades 共同基金是否根据盈利消息进行交易?大型活跃交易的信息内容
Pub Date : 2022-05-16 DOI: 10.1177/0148558x221094905
Linda H. Chen, Wei Huang, George J. Jiang, Kevin X. Zhu
Using monthly holdings data, we show that in contrast to findings in existing literature, mutual fund trades in aggregate do not have predictive power for future earnings information. We identify active trades by mutual funds, that is, trades not passively driven by fund flows, and show that only large active trades by mutual funds contain information on future earnings. Moreover, we show evidence that large active trades by mutual funds help incorporate future earnings information into stock prices and significantly improve stock price efficiency. Finally, we show that large active trades by mutual funds prior to earnings announcements deliver superior abnormal returns. Mutual fund managers that actively trade on future earnings information are skilled; the top quintile skilled funds on average outperform those in the bottom quintile by 127 bps in four-factor alpha over subsequent four quarters.
使用月度持股数据,我们表明,与现有文献的发现相反,共同基金交易总体上不具备预测未来收益信息的能力。我们确定了共同基金的主动交易,即不受资金流被动驱动的交易,并表明只有共同基金的大型主动交易才包含有关未来收益的信息。此外,我们展示了共同基金的大量活跃交易有助于将未来收益信息纳入股票价格并显著提高股票价格效率的证据。最后,我们表明,在收益公告之前,共同基金的大规模活跃交易提供了优越的异常回报。积极利用未来收益信息进行交易的共同基金经理是熟练的;在随后的四个季度中,排名前五分之一的技术基金的四因子alpha平均比排名后五分之一的基金高出127个基点。
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引用次数: 0
Free Cash Flows and Price Momentum 自由现金流和价格动量
Pub Date : 2022-04-25 DOI: 10.1177/0148558x221091803
Jiajia Fu,Fangming Xu,Cheng Zeng,Liyi Zheng
This study investigates the role of free cash flows and (cross-sectional and time-series) price momentum in predicting future stock returns. Past returns and free cash flows each positively predict future stock returns after controlling for the other, suggesting that cash flows and momentum both contain valuable and distinctive information about future stock returns. A strategy of buying past winners with high free cash flows and shorting past losers with low free cash flows significantly outperforms the traditional momentum trading strategy. The enhanced performance is not sensitive to investor sentiment, time variations, or transaction costs. Further analysis shows that the incremental cash flow effects are largely attributable to net distributions to equity/debt holders. Overall, our findings shed light on the role of corporate fundamentals in technical trading strategies.
本研究探讨自由现金流和(横断面和时间序列)价格动量在预测未来股票回报中的作用。过去收益和自由现金流在相互控制后都能正向预测未来股票收益,这表明现金流和动量都包含有价值和独特的未来股票收益信息。买入过去自由现金流高的赢家,做空过去自由现金流低的输家,这种策略明显优于传统的动量交易策略。增强的业绩对投资者情绪、时间变化或交易成本不敏感。进一步分析表明,增加现金流量的影响主要归因于对权益/债务持有人的净分配。总体而言,我们的研究结果揭示了公司基本面在技术交易策略中的作用。
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引用次数: 0
Aggressive Tax Planning and Labor Investments 积极的税收计划和劳动力投资
Pub Date : 2022-04-05 DOI: 10.1177/0148558x221089638
Simone Traini,Nathan C. Goldman,Christina M. Lewellen
We examine the association between aggressive tax planning and labor investment efficiency among U.S. firms. Labor is an important input to production that is material to many firms, and prior research suggests that inefficient labor investments can negatively affect future profitability and growth. We provide evidence that firms engaging in aggressive tax planning are associated with deviations from expected labor investments, which is indicative of labor investment inefficiency. We find that our results are concentrated in labor underinvestment, consistent with risks and uncertainties from aggressive tax planning making firms more cautious when investing. Our findings are strongest among firms with greater tax risk, higher labor costs, and weaker corporate governance. Our study contributes to the literature examining tax planning consequences by providing evidence that a tradeoff exists between aggressive tax planning and investments in labor. Therefore, our results suggest that managers should carefully consider the cash flow benefits of tax planning in conjunction with the potential effects of lower labor investments to ensure that the overall long-term effect of the tax strategy is value-increasing.
我们研究了美国公司积极的税收筹划和劳动投资效率之间的关系。劳动力是生产的重要投入,对许多企业来说是重要的,先前的研究表明,低效的劳动力投资会对未来的盈利能力和增长产生负面影响。我们提供的证据表明,从事激进税收筹划的企业与预期劳动力投资的偏差有关,这表明劳动力投资效率低下。我们发现我们的结果集中在劳动力投资不足,这与激进的税收筹划导致企业在投资时更加谨慎的风险和不确定性是一致的。我们的研究结果在税收风险较高、劳动力成本较高、公司治理较弱的公司中最为明显。我们的研究通过提供证据证明积极的税收规划和劳动力投资之间存在权衡,从而为研究税收规划后果的文献做出了贡献。因此,我们的研究结果表明,管理者应该仔细考虑税收规划的现金流收益以及较低劳动力投资的潜在影响,以确保税收策略的整体长期影响是增值的。
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引用次数: 0
CDS Channels of Influence on Discretionary Accruals CDS对可操纵性应计利润的影响渠道
Pub Date : 2022-03-26 DOI: 10.1177/0148558x221081990
Hao Cheng,Kian Guan Lim
Existing studies indicated that firm debt holders can use the credit default swap (CDS) market to hedge their credit risk, and thus they would reduce their monitoring of the firms, leading to largely distressed firms shirking and increasing positive abnormal earnings accruals. Besides providing insurance, however, the CDS spreads also perform price discovery of credit risk information sought by trade creditors and potential lenders who are not protected. High absolute abnormal discretionary accruals or bad earnings quality, especially negative abnormal accruals, would lead adverse CDS price signals that are very costly to the firm. This compels the firm under nondistressed conditions to be able to improve cash holdings, cash flows, working capital, and earnings reporting quality. Our new results indicate that the channels of improvement in earnings quality are through a firm’s large accounts payable and low cash holdings related to trade credit exposures. In the longer run, this leads to higher profitability and improved firm value. Thus, the generation of public information via the CDS market reduces information asymmetry and can enforce greater discipline in discretionary accounts reporting.
现有研究表明,企业债务持有人可以利用信用违约互换(CDS)市场来对冲其信用风险,从而减少对企业的监控,导致大部分陷入困境的企业逃避并增加正异常应计收益。然而,除了提供保险之外,CDS价差还对没有受到保护的商业债权人和潜在贷款人寻求的信用风险信息进行价格发现。高的绝对异常可支配应计利润或不良的盈余质量,特别是负的异常应计利润,将导致不利的CDS价格信号,这对公司来说是非常昂贵的。这迫使公司在非困境条件下能够改善现金持有量、现金流、营运资本和收益报告质量。我们的新结果表明,盈余质量改善的渠道是通过公司的大额应付账款和与贸易信贷风险相关的低现金持有量。从长远来看,这将导致更高的盈利能力和企业价值的提高。因此,通过CDS市场产生的公开信息减少了信息不对称,并可以在可自由支配的账户报告中执行更严格的纪律。
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引用次数: 0
The Estimated Propensity to Issue Going Concern Audit Reports and Audit Quality 发布持续经营审计报告的估计倾向与审计质量
Pub Date : 2022-02-28 DOI: 10.1177/0148558x221079011
Ling Chu, Hila Fogel-Yaari, Ping Zhang

Auditors’ propensity to issue Going Concern Audit Reports (GCARs) is one of the proxies often used for audit quality. Although this propensity is a distinguishing characteristic of auditors, it does not indicate quality according to both theory and practice. In theory, higher quality auditors make fewer audit errors; they are more likely to issue GCARs to clients that deserve them and less likely to issue GCARs to clients that do not. Therefore, the propensity itself does not indicate quality. In practice, Public Company Accounting Oversight Board (PCAOB) inspection reports reveal that the GCAR is rarely mentioned as a deficiency, and in the few cases in which it is discussed, the deficiency is attributed to evidence gathering and estimations, rather than to the GCAR decision itself. The theory and practice motivate our study. This article investigates the empirical ability of the GCAR propensity to proxy for audit quality and finds that different samples and different models yield different determinations of auditor quality. Our findings caution against the use of the propensity to issue GCARs as a proxy for audit quality.

审计人员发布持续经营审计报告的倾向是审计质量的常用指标之一。虽然这种倾向是审计师的显著特征,但从理论和实践来看,它并不意味着质量。理论上,审计人员素质越高,审计错误越少;他们更有可能向值得的客户发放gcar,而不太可能向不值得的客户发放gcar。因此,倾向本身并不表示质量。在实践中,上市公司会计监督委员会(PCAOB)的检查报告显示,GCAR很少被提及为缺陷,在少数讨论GCAR的情况下,缺陷归因于证据收集和估计,而不是GCAR决策本身。理论和实践是我们学习的动力。本文研究了GCAR倾向对审计质量代理的实证能力,发现不同的样本和不同的模型产生了不同的审计师质量决定。我们的研究结果告诫人们不要将发行gcar的倾向作为审计质量的代表。
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引用次数: 0
The Impact of PCAOB-Type Regulations on Auditors Under Different Legal Systems 不同法律制度下pcaob型监管对审计师的影响
Pub Date : 2022-02-28 DOI: 10.1177/0148558x221078432
Minlei Ye, Dan A. Simunic

This article analyzes the impact of Public Company Accounting Oversight Board (PCAOB)-type regulatory oversight and legal liability on audit quality and social surplus. We show the conditions under which regulatory oversight can improve audit quality and social surplus, as compared with the impact of legal systems. Moreover, we demonstrate that regulatory oversight is not likely to substitute effectively for a legal system. This is the first study that analyzes the possible effects of an audit regulator on auditors under different legal systems, and our results enhance understanding of the complex relationship between regulatory oversight, a legal system, and social surplus.

本文分析了上市公司会计监督委员会(PCAOB)式监管和法律责任对审计质量和社会盈余的影响。我们展示了与法律制度的影响相比,监管监督可以改善审计质量和社会盈余的条件。此外,我们证明了监管监督不太可能有效地取代法律制度。这是第一个分析审计监管机构在不同法律制度下对审计师可能产生的影响的研究,我们的研究结果加深了对监管监督、法律制度和社会盈余之间复杂关系的理解。
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引用次数: 0
Identifying the Roles of Accounting Accruals in Corporate Financial Reporting 确定会计应计制在公司财务报告中的作用
Pub Date : 2021-10-12 DOI: 10.1177/0148558x211035224
Sunil Dutta, Panos N. Patatoukas, Annika Yu Wang

Research in corporate financial reporting identifies two important roles of accounting accruals. First, accruals smooth fluctuations in operating cash flows. Second, accruals allow recognition of losses in an asymmetric timely manner. While these two roles imply different relations between individual accrual components and operating cash flow news, prior research often focuses on the properties of aggregate accruals. We investigate the role of individual accrual components and identify asymmetry in the relation of investment with operating cash flow news as a confounding factor. We show that this investment factor operates through depreciation and amortization accruals, which typically account for the bulk of aggregate accruals. Overall, our article demonstrates the importance of adopting a granular approach to identifying the different roles of individual accrual components.

公司财务报告研究确定了会计应计制的两个重要作用。首先,应计使经营性现金流量平稳波动。其次,应计制允许以不对称的及时方式确认损失。虽然这两种角色意味着各个应计项目组成部分与经营性现金流量新闻之间存在不同的关系,但先前的研究往往侧重于应计项目总额的性质。我们研究了个别应计组成部分的作用,并确定了投资与经营现金流新闻之间关系的不对称,这是一个混淆因素。我们表明,这一投资因素通过折旧和摊销应计项目来运作,这通常占总应计项目的大部分。总的来说,我们的文章展示了采用细粒度方法来识别各个应计组成部分的不同作用的重要性。
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引用次数: 0
Non-Audit Services in Audit Committee Interlocked Firms, Financial Reporting Quality, and Future Performance 审计委员会联营公司的非审计服务、财务报告质量和未来绩效
Pub Date : 2020-05-11 DOI: 10.1177/0148558X211015552
Linna Shi, Siew Hong Teoh, Jian Zhou
We investigate whether board-interlocked firms via an audit committee (AC) board member exhibit correlated non-audit service (NAS) purchases, and whether financial reporting quality and future firm performance vary with the amount of correlated NAS purchases from the AC interlock. We find that AC interlocked firms have positively correlated total NAS and three NAS subtypes—Tax, Assurance, and Other—in the overall sample period from 2000 to 2016, and in each of the subperiods pre- and post-SOX (Sarbanes–Oxley Act). Firms with a larger NAS component that is explained by the AC interlock tend to exhibit lower financial reporting quality. We also find evidence that firms with higher AC interlocked NAS purchases are associated with lower future performance, although this association exists only in the pre-SOX period. Overall, the evidence suggests that greater NAS purchases among AC interlocked firms can have a detrimental effect on financial reporting quality and auditor independence. While these detrimental effects are concentrated in the pre-SOX period when there were less restrictions on NAS purchases, we find some evidence that the association with lower financial reporting quality persists in the post-SOX period.
我们研究了通过审计委员会(AC)董事会成员而形成的董事会连锁公司是否表现出相关的非审计服务(NAS)购买行为,以及财务报告质量和未来公司业绩是否会随着AC连锁公司的相关NAS购买数量而变化。我们发现,在 2000 年至 2016 年的总体样本期间,以及在《萨班斯-奥克斯利法案》(SOX)之前和之后的每个子期间,审计委员会联锁公司的非审计服务总额与三种非审计服务子类型--税务、担保和其他--呈正相关。由 AC 互锁解释的 NAS 部分较大的公司往往表现出较低的财务报告质量。我们还发现有证据表明,AC 互锁的 NAS 购买量越高的公司,其未来业绩越低,尽管这种关联只存在于《萨班斯-奥克斯利法案》之前的时期。总体而言,证据表明,AC 互锁公司购买更多 NAS 会对财务报告质量和审计师独立性产生不利影响。虽然这些不利影响主要集中在对购买 NAS 限制较少的前证券交易法案时期,但我们发现一些证据表明,与较低财务报告质量的关联在后证券交易法案时期依然存在。
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引用次数: 4
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Journal of Accounting, Auditing & Finance
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