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Full-Text Articles in Accounting
State Antitakeover Laws And Voluntary Disclosure, Yijiang Zhao, Arthur Allen, Iftekhar Hasan
State Antitakeover Laws And Voluntary Disclosure, Yijiang Zhao, Arthur Allen, Iftekhar Hasan
School of Accountancy: Faculty and Staff Publications
We test the relationship between takeover protection and voluntary disclosure in a setting of antitakeover laws in a firm’s state of incorporation. After correcting for the endogeneity of firms’ incorporation choices, we find that firms incorporated in states with more antitakeover laws have higher levels of voluntary disclosure and stock market liquidity. Further tests do not support shareholder demands being the driving force for this association. Our findings are consistent with takeover protection and poor disclosure serving as substitute mechanisms for deterring takeovers. Therefore, as antitakeover statutes mitigate takeover threats, they enhance managers’ incentives to disclose more in order to …
An Evidential Reasoning Approach To Fraud Risk Assessment Under Dempster-Shafer Theory: A General Framework, Lei Gao, Theodore J. Mock, Rajendra P. Srivastava
An Evidential Reasoning Approach To Fraud Risk Assessment Under Dempster-Shafer Theory: A General Framework, Lei Gao, Theodore J. Mock, Rajendra P. Srivastava
School of Accountancy: Faculty and Staff Publications
This paper develops a general framework under Dempster-Shafer theory for assessing fraud risk in a financial statement audit by integrating the evidence pertaining to the presence of fraud triangle factors (incentives, attitude and opportunities), and evidence concerning both account-based and evidence-based fraud schemes. This framework extends fraud risk assessment models in prior research in three respects. 1) It integrates fraud schemes, both account schemes through which accounts are manipulated, and evidence schemes through which frauds are concealed, into a single framework. 2) It incorporates prior fraud frequency information obtained from the Accounting and Auditing Enforcement Releases issued by the Securities …