Leading Financial Indicators Of Corporate Bankruptcy,
2024
University of Montana
Leading Financial Indicators Of Corporate Bankruptcy, Macee Patritti
Undergraduate Theses, Professional Papers, and Capstone Artifacts
No abstract provided.
Regulating Gender Diversity: Evidence From California Senate Bill 826,
2024
Brigham Young University - Provo
Regulating Gender Diversity: Evidence From California Senate Bill 826, Abigail Allen, Aida Wahid
Faculty Publications
Do gender diversity quotas enhance firm value? This broad question has sparked significant debate because while diversity is generally thought to improve board functioning, prior research in international settings suggests mandating diversity may have adverse consequences if it moves firms away from market equilibrium. Exploiting the political events leading up to the passage of California Senate Bill 826 as an exogenous shock to assess the market implications of board gender composition, we document either significantly positive or insignificant 2-day abnormal returns for California firms across a variety of model specifications. Importantly, this finding contradicts the strong claims of contemporary studies …
Automating Evaluation Of Skill Assessment To Promote Skill Acquisition In The Area Of Data Analytics Automation,
2024
Texas Tech University
Automating Evaluation Of Skill Assessment To Promote Skill Acquisition In The Area Of Data Analytics Automation, Joshua G. Coyne, Scott L. Summers, Brigham Villanueva, David A. Wood
Faculty Publications
As accounting increasingly embraces automation and data analytics, proficient skill assessment remains a challenge. We introduce an automated tool that streamlines the evaluation of Alteryx workflows. Utilizing the design science methodology, our tool effectively executes and compares Alteryx workflows against a solution, providing score and feedback. Validation demonstrates remarkable gains; our tool is error-free and 9 to 146 times faster than manual evaluation. The tool’s efficiency, accuracy, and user-friendliness make it much more feasible to assign unstructured Alteryx assignments for student development. Enhanced technology skills will promote hiring and productivity gains associated with automation in accounting.
Leveraging Chatgpt For Enhancing The Internal Audit Process – A Real-World Example From A Large Multinational Company,
2024
Arizona State University
Leveraging Chatgpt For Enhancing The Internal Audit Process – A Real-World Example From A Large Multinational Company, Scott Emett, Marc Eulerich, Egemen Lipinski, Nicolo Prien, David A. Wood
Faculty Publications
We discuss how the internal audit function (IAF) of a large multinational energy company, Uniper, is starting to use ChatGPT to improve automation of internal auditing. We investigate the benefits and challenges of integrating ChatGPT into internal audit processes and assess its impact on the efficiency and effectiveness of the IAF. Uniper has implemented ChatGPT into parts of audit preparation, fieldwork, and audit reporting. On their initial tests, they estimate efficiency gains ranging from 50 to 80 percent for various processes. We report key risks and challenges with using ChatGPT in internal auditing as well as the initial key practices …
Is It All Hype? Chatgpt’S Performance And Disruptive Potential In The Accounting And Auditing Industries,
2024
University of Duisburg-Essen
Is It All Hype? Chatgpt’S Performance And Disruptive Potential In The Accounting And Auditing Industries, Marc Eulerich, Aida Sanatizadeh, Hamid Vakilzadeh, David A. Wood
Faculty Publications
ChatGPT frequently appears in the media, with many predicting significant disruptions, especially in the fields of accounting and auditing. Yet research has demonstrated relatively poor performance of ChatGPT on student assessment questions. We extend this research to examine whether more recent ChatGPT models and capabilities can pass major accounting certification exams including the Certified Public Accountant (CPA), Certified Management Accountant (CMA), Certified Internal Auditor (CIA), and Enrolled Agent (EA) certification exams. We find that the ChatGPT 3.5 model cannot pass any exam (average score across all assessments of 53.1%). However, with additional enhancements, ChatGPT can pass all sections of each …
Chatbots Mitigate Help-Seeking Avoidance,
2024
Brigham Young University - Provo
Chatbots Mitigate Help-Seeking Avoidance, James Gaskin, Eva Blondeel, Ryan Schuetzler, Rachel Serre, Jacob Steffen, David A. Wood
Faculty Publications
This research explores the transformative role of large language model (LLM) chatbots in fostering help-seeking behaviors among introverted and underrepresented students in educational settings. Despite the importance of help-seeking for academic success, certain groups exhibit avoidance behaviors due to self-presentation concerns and stereotype threats. By integrating LLM chatbots as non-judgmental, anonymous teaching assistants in an introductory information systems course, the study demonstrates how technology can mitigate these behaviors and promote inclusivity. The chatbots provided real-time, unbiased support, significantly enhancing the students' willingness to engage in help-seeking behaviors without fear of judgment. This practical application of chatbots not only supports academic …
Gauging Scholarly Engagement: An Investigation Into Topic Popularity Within The Asee Cit Division,
2024
Brigham Young University - Provo
Gauging Scholarly Engagement: An Investigation Into Topic Popularity Within The Asee Cit Division, Barry M. Lunt, Mudasser Fraz Wyne, David A. Wood
Faculty Publications
Since 2011, the Computing and Information Technology (CIT) division of the ASEE has had 427 papers presented and published in the proceedings of the ASEE Annual Conference and Exposition. This paper looks at these 427 papers as a whole, providing descriptive statistics, giving the top institutions and authors that have contributed to these papers, and providing information regarding the impact of the top ten papers, as measured by their citations and downloads. We have also used the ChatGPT version 4.0 to provide categories for the 427 papers, providing insight into the most popular topics for papers in the CIT division.
Assessing Virtual Reality’S Influence On Honesty In Reporting,
2024
Brigham Young University - Provo
Assessing Virtual Reality’S Influence On Honesty In Reporting, Jeffrey Pickerd, Nathan Waddoups, David A. Wood, Xiaomei (Grazia) Xiong
Faculty Publications
Organizations, businesses, and society are exploring and adopting virtual reality (VR) and augmented reality (AR). VR is expected to boost the global economy by $1.5 trillion by 2030. In this study, we focus on the effect of VR on an important accounting variable—reporting honesty. We examine reporting honesty across two tasks, various measures, and various populations, that are commonly used in existing research. In our initial experiment, participants misreported more in a dice rolling task when performing it in a VR setting than in a non-VR setting. However, in a second and third experiment attempting to replicate and extend our …
Improving The Production And Reviewing Of Design Science Research In Accounting,
2024
Utah Valley University
Improving The Production And Reviewing Of Design Science Research In Accounting, Noah Myers, Mason Snow, Nathan Waddoups, David A. Wood
Faculty Publications
Design Science Research (DSR) is a rigorous research methodology widely used in other fields like computer science and engineering, but its application in accounting is still relatively limited. This paper reviews the implementation of DSR published in accounting journals and provides recommendations to improve the authoring and reviewing processes. We review 51 DSR articles published in accounting journals between 2011 and 2023. The analysis identified areas where papers excelled and fell short, leading to recommendations in the following key aspects: adherence to a research framework, validation of research questions, defining objectives of artifacts, developing a more diverse set of artifacts, …
Reassessing Assurance In An Automated World: Insights From Board Members, Executives, And Internal Auditors,
2024
Arizona State University
Reassessing Assurance In An Automated World: Insights From Board Members, Executives, And Internal Auditors, Scott Emett, Marc Eulerich, Jeffrey Pickerd, David A. Wood
Faculty Publications
Technological advances that automate work continue to transform the accounting profession. We examine whether automation impacts resource allocation within the internal audit function (IAF), a unique setting that allows us to compare demand for assurance activities with demand for consulting activities. We conduct an experiment in which experienced board members, executives, and internal auditors make budget recommendations for a company’s IAF that developed automations that improved the efficiency of the IAF. Results show that across all groups, participants respond to these efficiencies by decreasing the IAF’s total budget but retaining the productive capacity of the IAF. The budget cuts are …
The Intellectual Structure Of Audit Committee Research: A Bibliometric Analysis (1969 – 2020),
2024
University of Duisburg-Essen
The Intellectual Structure Of Audit Committee Research: A Bibliometric Analysis (1969 – 2020), Joel Behrend, Marc Eulerich, David A. Wood
Faculty Publications
The audit committee is a widely recognized mechanism of effective corporate governance. We advance prior literature reviews by using bibliometric analysis techniques that comprehensively process large bodies of bibliometric information. We base inferences on citation patterns of 1,173 articles to identify concepts that “shine through” within the scientific understanding of audit committees. Using content analysis, we then analyze these concepts and explore existing interrelationships. We document a declining influence of audit committee research, as well as a widening gap between the quantitative and qualitative research camps. While the former is mostly derivative in nature, the latter produces innovative insights on …
Estimating The Likelihood Of Future Tax Settlements,
2024
Washington University in St. Louis
Estimating The Likelihood Of Future Tax Settlements, Jared Jennings, Joshua A. Lee, Erin Towery
Faculty Publications
Corporate income tax settlements represent a substantial cash outflow for many U.S. firms. This study develops an ex-ante measure of future corporate income tax settlement likelihood using quantitative and qualitative information from Form 10-K. We find that both quantitative and qualitative information are incrementally useful in predicting future tax settlements. We then use our new measure to examine the association between predicted future tax settlements and cash holdings. In contrast with prior research documenting a positive association between reserves for uncertain tax positions and cash holdings, we find that firms with a higher likelihood of future tax settlements hold less …
Strategic Alignment, Performance, And The Moderating Effect Of Regulatory Fit,
2024
Emory University
Strategic Alignment, Performance, And The Moderating Effect Of Regulatory Fit, Hayden T. Gunnell, Steven D. Smith, Travis W. Steadman
Faculty Publications
We examine how the alignment of performance measurement and strategy affects performance on a multidimensional task. Our experiment varies both the strategy (speed versus accuracy) of the hypothetical firm for which participants work and the individual performance measure that is reported to them, creating two conditions of clear alignment and two of clear misalignment. We find that while workers are responsive to the performance measure regardless of its alignment, they are also sensitive to the strategy such that costly alignment effects are observed. We also predict and find that workers respond asymmetrically to misalignment in accuracy performance but not in …
Anomaly Time,
2024
Texas A&M University
Anomaly Time, Boone Bowles, Adam V. Reed, Matthew C. Ringgenberg, Jacob Thornock
Faculty Publications
We examine the timing of returns around the publication of anomaly trading signals. Using a database that captures when information is first publicly released, we show that anomaly returns are concentrated in the first month after information release dates, and these returns decay soon thereafter. We also show that the academic convention of forming portfolios in June underestimates predictability because it uses stale information, which makes some anomalies appear insignificant. In contrast, we show many anomalies do predict returns if portfolios are formed immediately after information releases. Finally, we develop guidance on forming portfolios without using stale information.
Tax Sentiment And Compliance: Evidence From Social Media,
2024
University of Texas at Austin
Tax Sentiment And Compliance: Evidence From Social Media, Andrew Belnap, Jacob Thornock, Kevin Standridge, Braden Williams
Faculty Publications
Motivations for voluntary tax compliance that fall outside of a standard, rational model can be intrinsic or extrinsic. We use social media rhetoric about taxes to create a measure of tax sentiment that reflects taxpayers’ extrinsic, behavioral motivations for voluntary compliance, and then examine the association between public tax sentiment and tax compliance. Our machinelearning based approach for measuring sentiment uses millions of tax-related tweets, which vary by time and geography. We find that tax sentiment is negatively associated with tax compliance. Our main findings and cross-sectional tests are consistent with the notion that paying one’s taxes is a way …
Hidden Wealth And Automatic Information Sharing,
2024
University of Texas at Austin
Hidden Wealth And Automatic Information Sharing, Andrew Belnap, Jacob Thornock, Braden Williams
Faculty Publications
In recent years, governments across the globe have implemented automatic information-sharing measures as a revolutionary tool to combat offshore tax evasion. Using hand-collected and private Internal Revenue Service data on participation in the Foreign Account Tax Compliance Act, we provide some of the first evidence of the costs and quality of information shared via automatic information sharing. We estimate that the aggregate costs borne by foreign financial institutions (FFIs) were $31–$52 billion. Furthermore, although 97 percent of FFIs have committed to sharing information with US tax authorities, there is significant variation in quality. Quality is lower for accounts held by …
The Effect Of Economic Nexus On Sales Tax Avoidance And Retail Purchases,
2024
Brigham Young University - Provo
The Effect Of Economic Nexus On Sales Tax Avoidance And Retail Purchases, Zackery D. Fox, John R. Robinson, Stephen A. Stewart
Faculty Publications
We investigate the impact of adopting economic nexus laws on local consumer consumption patterns. To do so, we focus on a natural experiment involving Washington State, which enacted economic nexus in October of 2018, and its neighboring state Oregon, which has no sales tax. Utilizing data from the Nielsen Consumer Panel survey, we estimate a difference-in-differences regression to test whether the imposition of sales tax on internet purchases in Washington led to an increase in brick and mortar (B&M) retail purchases relative to those in Oregon. We report evidence that consumers in Washington increased purchases at B&M retailers relative to …
The Economic Value Of Blockchain Applications: Early Evidence From Asset-Backed Securities,
2024
Singapore Management University
The Economic Value Of Blockchain Applications: Early Evidence From Asset-Backed Securities, Xia Chen, Qiang Cheng, Ting Luo
Research Collection School Of Accountancy
In this paper, we evaluate the economic value of a blockchain application. In the context of asset-backed securities (ABS) issuance in China, where some ABS are issued with blockchain technology and others are not, we find that the use of blockchain significantly reduces the coupon yield at issuance. Compared with other ABS, those issued using blockchain technology experience a decrease of 31.4 basis points in the yield spread, which corresponds to a relative decrease of 13%. We further document that the effect of blockchain is more pronounced for ABS deals rated by less reputable credit rating agencies and agencies that …
Common Ownership And Analyst Forecasts,
2024
Singapore Management University
Common Ownership And Analyst Forecasts, Qiang Cheng, Shuqing Luo, Jinping Zhang
Research Collection School Of Accountancy
We examine the effect of the common ownership relation between brokerage houses and the firms covered by their analysts (referred to as co-owned brokerage houses, co-owned firms, and connected analysts, respectively) on analyst forecast performance. Common ownership can help the connected analysts have better access to co-owned firms, leading to higher-quality analyst research. However, common owners have incentives for higher valuation of the co-owned firms and thus can exert pressure on the connected analysts to issue optimistically biased research reports for these firms. We find that common ownership improves analyst forecast accuracy. This result is robust to a difference-in-differences design …
Did Asu 2020-06 Impact Firm Corporate Financing Decisions?,
2024
Claremont Colleges
Did Asu 2020-06 Impact Firm Corporate Financing Decisions?, Eric Sanchez
CMC Senior Theses
This research examines the influence of financial accounting standards for hybrid securities on corporate financing decisions. It uses ASU-2020-06 as a setting to test changes to the influence of moral hazard, adverse selection, and financial distress contracting costs on the likelihood of convertible bond issuances under the prior and latter accounting regimes for securities convertible into an entity's own equity.
