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Articles 1 - 7 of 7
Full-Text Articles in Business
The Value Of Assurance Over Internal Controls: Evidence From Mergers And Acquisitions, Ryan Courtlin Cating
The Value Of Assurance Over Internal Controls: Evidence From Mergers And Acquisitions, Ryan Courtlin Cating
Graduate Theses and Dissertations
In this study, I examine the value of assurance over internal controls in the mergers and acquisitions setting. Specifically, I examine the how the existence of an internal control audit mandated under Section 404(b) of SOX affects information asymmetry as proxied for by the likelihood of a company becoming the target of an acquisition. I find that companies with internal control audits are significantly more likely to receive bids than their counterparts that do not have an internal control audit. Upon further investigation, I find that the mechanism by which companies are more likely to become the target of an …
The First Sign: Detecting Future Financial Fraud From The Ipo Prospectus, Lisa Spadaccini Anderson
The First Sign: Detecting Future Financial Fraud From The Ipo Prospectus, Lisa Spadaccini Anderson
Graduate Theses and Dissertations
In this study, I examine whether it is possible to predict future financial statement fraud using disclosure content prior to the fraud. Specifically, I employ a machine learning algorithm to construct a unique measure based on the lexical cues embedded within a firm’s first public disclosure, the Management’s Discussion and Analysis section of the S-1 filing, during the Initial Public Offering process. I use this measure to predict whether a firm that is not already committing fraud will commit fraud within five years of the Initial Public Offering (IPO) that results in an Accounting or Enforcement Release (AAER). I find …
Essays On Information Asymmetry And Leakage, Jun Hyun (Joseph) Ryoo
Essays On Information Asymmetry And Leakage, Jun Hyun (Joseph) Ryoo
Electronic Thesis and Dissertation Repository
Since the underlying qualities of products and firms are not readily apparent, information asymmetry exists at the heart of marketing. This dissertation investigates information asymmetry that is present specifically between: (1) firms and consumers, and (2) firms and investors. I advance our knowledge of how information asymmetry can be reduced in beneficial ways for the firm either by voluntary or involuntary means. This dissertation consists of two essays. In Essay 1, I examine involuntary information leakage in the movie industry. I find that spoilers, which prematurely resolve plot uncertainty for those who have yet to see the movie, can increase …
Buying Products From Whom You Know: Personal Connections And Information Asymmetry In Supply Chain Relationships, Ting Chen, Hagit Levy, Xiumin Martin, Ron Shalev
Buying Products From Whom You Know: Personal Connections And Information Asymmetry In Supply Chain Relationships, Ting Chen, Hagit Levy, Xiumin Martin, Ron Shalev
Publications and Research
This study investigates the role personal connections play in a crucial element of the supply chain—supplier selection. We find that the likelihood that a potential supplier (hereafter, a vendor) is selected to be an actual supplier (hereafter, supplier) increases when personal connections between executives of the vendor and the customer exist. The magnitude of the effect varies predictably across management ranks and positions and is stronger when information asymmetries between a vendor and a customer are high. Conditioning on the existence of a supply-chain partnership, a departure of a personally connected executive prompts the termination of the supply-chain relationship more …
Analyst Talent, Information, And Investment Strategies, Zhichuan Li, Stephen R. Foerster, Zhenyang Tang, Chongyu Dang
Analyst Talent, Information, And Investment Strategies, Zhichuan Li, Stephen R. Foerster, Zhenyang Tang, Chongyu Dang
Business Publications
Analyst talent, rather than the number of analysts following a firm, matters most to investors. We find: 1) Analysts with greater “natural” forecasting talent—controlling for experience, brokerage affiliation, and task complexity—contribute relatively more firm-specific rather than industry or market information; 2) Earnings forecasts by low-talent analysts may lead to substantial mispricing; 3) When earnings surprises are large, post-earnings-announcement drift is more prominent among firms covered by low-talent analysts; 4) Firms with low-talent analysts have significantly more insider trading prior to positive earnings news; and 5) Investing following insider trading is more profitable in stocks followed by low-talent analysts.
Does Corporate Eco-Innovation Affect Stock Price Crash Risk?, Rashid Zaman, Nader Atawnah, Muhammad Haseeb, Muhammad Nadeem, Saadia Irfan
Does Corporate Eco-Innovation Affect Stock Price Crash Risk?, Rashid Zaman, Nader Atawnah, Muhammad Haseeb, Muhammad Nadeem, Saadia Irfan
Research outputs 2014 to 2021
We examine the effect of corporate environmental innovation (hereafter eco-innovation) on stock price crash risk and document a significant negative association. Utilising a large sample of publicly listed U.S. firms for the period 2003 to 2017, we find that an increase in eco-innovation from the 25th to the 75th percentile is associated with 17.62% reduction in stock price crash risk. This outcome remains robust to a variety of sensitivity tests and after accounting for potential endogeneity concerns. Eco-innovative firms attract more institutional investors and equity analyst following and disclose more information leading to lower stock price crash risk. Additional tests …
Sustainability Of Rewards-Based Crowdfunding: A Quasi-Experimental Analysis Of Funding Targets And Backer Satisfaction, Michael Wessel, Rob Gleasure, Robert John Kauffman
Sustainability Of Rewards-Based Crowdfunding: A Quasi-Experimental Analysis Of Funding Targets And Backer Satisfaction, Michael Wessel, Rob Gleasure, Robert John Kauffman
Research Collection School Of Computing and Information Systems
Rewards-based crowdfunding presents an information asymmetry for participants due to the funding mechanism used. Campaign-backers trust creators to complete projects and deliver rewards as outlined prior to the fundraising process, but creators may discover better opportunities as they progress with a project. Despite this, the all-or-nothing (AON) mechanism on crowdfunding platforms incentivizes creators to set meager funding-targets that are easier to achieve but may offer limited slack when creators wish to simultaneously pursue emerging opportunities later in the project. We explore the related issues of how funding targets seem to be selected by the creators, and how dissatisfaction with the …