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Articles 211 - 240 of 479

Full-Text Articles in Accounting

Information Flows Among Rivals And Corporate Investment*, Darren Bernard, Terrence Blackburne, Jacob Thornock Jan 2019

Information Flows Among Rivals And Corporate Investment*, Darren Bernard, Terrence Blackburne, Jacob Thornock

Faculty Publications

Using a novel pairwise measure of firms’ acquisition of rivals’ disclosures, we show that investment opportunities drive interfirm information flows. We find that these flows predict subsequent mergers and acquisitions as well as how and how much firms invest, relative to rivals. Moreover, firms’ use of rivals’ information often hinges on the similarities of their products. Our results suggest that rivals’ public information, far from being unusable, helps facilitate investment and product decisions, including acquisitions and product differentiation strategies. The findings also support a learning mechanism that could partly underlie the emerging literature on peer investment effects.


Disclosure Overload? A Professional User Perspective On The Usefulness Of General Purpose Financial Statements*, Michael S. Drake, Jeffrey Hales, Lynn Rees Jan 2019

Disclosure Overload? A Professional User Perspective On The Usefulness Of General Purpose Financial Statements*, Michael S. Drake, Jeffrey Hales, Lynn Rees

Faculty Publications

We survey a broad group of professionals who use financial statements as part of their job to assess the extent to which they believe financial reports suffer from disclosure overload. Consistent with the claims made by regulators, auditors, and preparers, we find that a significant portion of professional financial statement users believe disclosure overload is a problem. However, this group is in the minority, with about twice as many professional users believing that overload is not a problem and that more information should be disclosed in financial statements. This dichotomy presents a difficult challenge to standard setters aiming to improve …


The Value Relevance Of Taxes: International Evidence On The Proxy For Profitability Role Of Tax Surprise, Jon Kerr Jan 2019

The Value Relevance Of Taxes: International Evidence On The Proxy For Profitability Role Of Tax Surprise, Jon Kerr

Faculty Publications

Despite evidence that tax surprise is incrementally value relevant, the literature has done little to broaden the investigation beyond the United States or examine circumstances that affect informativeness. After extending to the international setting, I examine the impact of tax enforcement. I report strong results of greater value relevance when tax enforcement is high and that the value relevance of tax surprise is mostly contained within its interaction with tax enforcement. These findings highlight the importance of tax enforcement in determining the information content of tax surprise and suggest that extant and future discussions should be broadened to include it.


Ranking Accounting Journals By Topical Area And Methodology, John A. Barrick, Nathan W. Mecham, Scott L. Summers, David A. Wood Jan 2019

Ranking Accounting Journals By Topical Area And Methodology, John A. Barrick, Nathan W. Mecham, Scott L. Summers, David A. Wood

Faculty Publications

This paper presents rankings of accounting journals disaggregated by topical area (AIS, audit, financial, managerial, tax, and other) and methodology (analytical, archival, experimental, and other). We find that only for the financial topical area and archival methodology does the traditional top-3 characterization of the best journals accurately describe which journals publish the most-cited work. For all other areas, including AIS, audit, managerial, tax, and other topics, and all other methodologies, including experimental, analytical, and other methodologies the top- 3 characterization does not describe which journals publish the most cited work. For only analytical research does the traditional top-6 journal characterization …


Factors That Influence The Perceived Use Of The Internal Audit Function's Work By Executive Management And Audit Committee, Marc Eulerich, Joleen Kremin, David A. Wood Jan 2019

Factors That Influence The Perceived Use Of The Internal Audit Function's Work By Executive Management And Audit Committee, Marc Eulerich, Joleen Kremin, David A. Wood

Faculty Publications

The internal audit function (IAF) is an important component of high-quality corporate governance. We study how the head of internal audit perceives the executive management team and the audit committee to rely on the IAF's work. It is not obvious from prior work or professional anecdotes whether the IAF satisfies the needs of both groups. If multiple factors influence the IAF's work, chief audit executives (CAEs) may find themselves in a situation with competing demands, which could then compromise quality for all stakeholders. Based on a unique dataset from CAEs, two logistic regression models identify factors that influence the degree …


The Loss Of Information Associated With Binary Audit Reports: Evidence From Auditors’ Internal Control And Going Concern Opinions*, Brant E. Christensen, Stevanie S. Neuman, Sarah C. Rice Jan 2019

The Loss Of Information Associated With Binary Audit Reports: Evidence From Auditors’ Internal Control And Going Concern Opinions*, Brant E. Christensen, Stevanie S. Neuman, Sarah C. Rice

Faculty Publications

This study provides evidence that binary signals in audit reports are unable to fully communicate underlying risks that are inherently continuous in nature. Specifically, we find that companies whose audit reports signal an improvement in internal control effectiveness relative to the prior year are still more likely to subsequently restate the current year’s financial statements than companies with no material weaknesses in either year. Similarly, companies deemed to no longer have substantial doubt of continuing as a going concern are still more likely to declare bankruptcy than companies with no going concern opinion in either year. Results in both settings …


Shadow It Use, Outcome Effects, And Subjective Performance Evaluation, Drew Allen, F. Greg Burton, Steven D. Smith, David A. Wood Jan 2019

Shadow It Use, Outcome Effects, And Subjective Performance Evaluation, Drew Allen, F. Greg Burton, Steven D. Smith, David A. Wood

Faculty Publications

The use of shadow IT (information technology systems not sanctioned or monitored by a company’s IT department) may be seen as either a form of organizational misbehavior or proactive and creative problem-solving. We examine whether these differing possible perceptions have implications for the subjective evaluation of subordinate performance. In our experiment, participants choose whether to award a bonus to an employee when different IT systems are used (normal vs. shadow IT) across different outcome levels (high vs. low outcomes). We find that employees using shadow IT are less likely to receive the bonus in both high and low outcome conditions …


The Effects Of Different Types Of Internal Controls On Employee Self-Control, Drew Allen, William G. Heninger, Scott L. Summers, David A. Wood Jan 2019

The Effects Of Different Types Of Internal Controls On Employee Self-Control, Drew Allen, William G. Heninger, Scott L. Summers, David A. Wood

Faculty Publications

One key reason companies implement internal controls is to reduce the likelihood of unethical behavior. Yet, research on ego depletion from psychology suggests that some controls may cause reductions in employees’ self-control, which could lead to increases in unethical behavior. Therefore, this study examines how different types of controls—namely preventive, detective with immediate feedback, and detective with delayed feedback—impact self-control and ethical judgments. Based on the results of three different experiments with 462 participants, we find no significant relation between self-control and the types of internal controls tested. Furthermore, we find that the types of controls tested have no effect …


Robotic Process Automation In Public Accounting, Lauren A. Cooper, D. Kip Holderness, Trevor L. Sorensen, David A. Wood Jan 2019

Robotic Process Automation In Public Accounting, Lauren A. Cooper, D. Kip Holderness, Trevor L. Sorensen, David A. Wood

Faculty Publications

This study investigates the adoption and use of Robotic Process Automation (RPA) software— often referred to as bots—in the public accounting industry. Accounting firms use RPA software to automate the input, processing, and output of data across computer applications in order to streamline repetitive and mundane business processes. We conducted individual, semi-structured interviews with 14 accounting professionals including at least two RPA leaders at each of the Big 4 accounting firms to gain insights into how RPA software is currently being used. Interviewees note that bots are implemented in all areas of the firm but have gained the most traction …


Rank And File Equity Compensation And Earnings Management: Evidence From Stock Options, D. Kip Holderness Jr., Adrienna Huffman, Melissa F. Lewis-Western Jan 2019

Rank And File Equity Compensation And Earnings Management: Evidence From Stock Options, D. Kip Holderness Jr., Adrienna Huffman, Melissa F. Lewis-Western

Faculty Publications

The wide-spread use of rank and file equity-based compensation suggests that executives believe that rank and file employees can affect firm outcomes, and some research supports this view. If equity-based incentives influence rank and file employees’ productive efforts, they might also influence their earnings management decisions. We find that increases in rank and file employees’ option-based compensation—our proxy for equity-based compensation—are associated with increases in earnings management and that this relation is attributable to real activities (as opposed to accrual) earnings management. Cross-sectional tests indicate that the relation is stronger when rank and file option compensation is likely to generate …


Income Smoothing And The Usefulness Of Earnings For Monitoring In Debt Contracting, Peter Demerjian, John Donovan, Melissa F. Lewis-Western Jan 2019

Income Smoothing And The Usefulness Of Earnings For Monitoring In Debt Contracting, Peter Demerjian, John Donovan, Melissa F. Lewis-Western

Faculty Publications

We investigate whether income smoothing affects the usefulness of earnings for contracting through the monitoring role of earnings-based debt covenants. First, we examine initial contract design and predict that income smoothing will increase (decrease) the use of earnings-based covenants if income smoothing improves (reduces) the usefulness of earnings to monitor borrowers. We find that private debt contracts to borrowers with greater income smoothing are more likely to include earnings-based covenants. A structural model that explores the cause of this relationship provides evidence that smoothing improves the ability of earnings to reflect credit risk. Second, we examine technical default following contract …


Does Audit Committee Accounting Expertise Help To Promote Audit Quality? Evidence From Auditor Reporting Of Internal Control Weaknesses*, Ling Lei Lisic, Linda A. Myers, Timothy Seidel, Jian Zhou Jan 2019

Does Audit Committee Accounting Expertise Help To Promote Audit Quality? Evidence From Auditor Reporting Of Internal Control Weaknesses*, Ling Lei Lisic, Linda A. Myers, Timothy Seidel, Jian Zhou

Faculty Publications

In this study, we examine whether audit committee accounting expertise helps to promote audit quality by motivating auditors to conduct diligent internal control audits and make appropriate internal control assessments because audit committee accounting expertise safeguards auditors from dismissal following adverse internal control opinions. Among clients with existing and likely internal control material weaknesses (as proxied by future restatements of audited financial statements), we find a greater likelihood of adverse internal control audit opinions when the audit committee has greater accounting expertise (measured by the proportion of accounting experts on the audit committee). Among all clients, we find a lower …


Déjà Vu: The Effect Of Executives And Directors With Prior Banking Crisis Experience On Bank Outcomes Around The Global Financial Crisis*, Anwer S. Ahmed, Brant E. Christensen, Adam J. Olson, Christopher G. Yust Jan 2019

Déjà Vu: The Effect Of Executives And Directors With Prior Banking Crisis Experience On Bank Outcomes Around The Global Financial Crisis*, Anwer S. Ahmed, Brant E. Christensen, Adam J. Olson, Christopher G. Yust

Faculty Publications

We investigate the effect of executives and directors with prior banking crisis experience on bank outcomes around the global financial crisis (GFC). Executives and directors with previous experience leading banks through a bank crisis may have been uniquely able to understand the risks, recognize the warnings signs early, and thus respond more effectively to the GFC. Controlling for other executive, director, and bank-level characteristics, we examine whether bank performance, risk taking, and accounting quality in the period immediately before and during the GFC are affected by having executives or directors who previously served as bank executives or directors during the …


Reward Type And Performance: An Examination Of Organizational Wellness Programs, William G. Heninger, Steven D. Smith, David A. Wood Jan 2019

Reward Type And Performance: An Examination Of Organizational Wellness Programs, William G. Heninger, Steven D. Smith, David A. Wood

Faculty Publications

We examine organizational control in the context of wellness programs—organizational initiatives designed to improve the physical and mental health of employees. In a field study setting, we examine the associations of three different types of incentives (cash, gift cards, and tangible rewards) with wellness program performance. We find that employees who successfully complete program challenges are associated with greater weight loss. We also find participants choosing gift cards are associated with the greatest program success, even though cash rewards are selected more than twice as often as gift cards. Tangible rewards are the least frequently selected reward and are associated …


Analyst Forecast Bundling, Michael S. Drake, Peter Joos, Joseph Pacelli, Brady Twedt Jan 2019

Analyst Forecast Bundling, Michael S. Drake, Peter Joos, Joseph Pacelli, Brady Twedt

Faculty Publications

Changing economic conditions over the past two decades have created incentives for sell-side analysts to both provide their institutional clients tiered services and to streamline their written research process. One manifestation of these changes is an increased likelihood of analysts’ issuing earnings forecasts for multiple firms on the same day. We identify this bundling property and show that bundling has increased steadily over time. We provide field evidence that the practice is a cost-saving measure, a natural byproduct of analysts focusing on thematic research, and a reflection of forecast updating that occurs in advance of important events. Our empirical analyses …


Is There Information Content In Information Acquisition?, Michael S. Drake, Darren T. Roulstone, Bret A. Johnson, Jacob Thornock Jan 2019

Is There Information Content In Information Acquisition?, Michael S. Drake, Darren T. Roulstone, Bret A. Johnson, Jacob Thornock

Faculty Publications

In this study, we examine whether investors’ actions to acquire accounting information are predictive of future firm performance because these actions partially reveal investors’ private expectations of this performance. Using a database of EDGAR downloads, we find some evidence that information acquisition of accounting reports by EDGAR users is, on average, predictive of future firm performance. We then determine the identity of the EDGAR user and examine whether different users’ private expectations will be relatively more predictive of subsequent performance. We find that the information acquisition activities of more sophisticated institutional users (e.g., hedge funds, investment banks) are more strongly …


The Role Of The Business Press In The Pricing Of Analysts’ Recommendation Revisions, Minkwan Ahn, Michael S. Drake, Hangsoo Kyung, Han Stice Jan 2019

The Role Of The Business Press In The Pricing Of Analysts’ Recommendation Revisions, Minkwan Ahn, Michael S. Drake, Hangsoo Kyung, Han Stice

Faculty Publications

We investigate the information-dissemination role of the business press by examining the coverage of analyst recommendation revisions. Consistent with the press providing wider dissemination of analyst reports, we find evidence that coverage of analyst recommendation revisions significantly increases the initial market reaction to these revisions and decreases the subsequent price drift. Furthermore, we find that news flash coverage, rather than in-depth coverage, of a recommendation revision drives both the initial market reaction results and drift results. Finally, we show that broader press coverage influences the activities of large-trade institutional investors but not highfrequency traders. Overall, our findings suggest a complementary …


International Auditing Considerations At Carrefour S.A., Timothy Seidel, Bill Tayler Jan 2019

International Auditing Considerations At Carrefour S.A., Timothy Seidel, Bill Tayler

Faculty Publications

Carrefour S.A. is a multinational retailer headquartered in France that operates over 10,800 stores worldwide consisting of hypermarkets (a supermarket and department store under one roof), supermarkets, and convenience stores, as well as e-commerce websites. The objective of this three-part case study is to expose students to international (or multi-national client) audit issues/considerations. Multi-national clients often have multiple locations or components that require separately audited financial information that is included in consolidated or group financial statements. The first case exposes students to the need to allocate materiality across components of a group audit. The second part of the case then …


Synopsis: Predictive Power? Textual Analysis In Mergers And Acquisitions, Philip Morgan Aug 2018

Synopsis: Predictive Power? Textual Analysis In Mergers And Acquisitions, Philip Morgan

Marriott Student Review

No abstract provided.


Synopsis: A Bit About Blockchain, Jonathan Chichoni Aug 2018

Synopsis: A Bit About Blockchain, Jonathan Chichoni

Marriott Student Review

No abstract provided.


Synopsis: A Digital Global Supply Chain, Jonathan Chichoni Aug 2018

Synopsis: A Digital Global Supply Chain, Jonathan Chichoni

Marriott Student Review

No abstract provided.


Book Review: Essentialism Aug 2018

Book Review: Essentialism

Marriott Student Review

No abstract provided.


The Benefits And Risks Of Multi-Level Marketing, Jacob Thorpe Aug 2018

The Benefits And Risks Of Multi-Level Marketing, Jacob Thorpe

Marriott Student Review

No abstract provided.


Predictive Power? Textual Analysis In Mergers & Acquisitions, Philip E. Morgan Aug 2018

Predictive Power? Textual Analysis In Mergers & Acquisitions, Philip E. Morgan

Marriott Student Review

Modern corporations utilize mergers and acquisitions as strategies to develop shareholder value today more than ever before, yet the need for understanding firms’ rationale and strategy is critical in predicting post-merger stock performance for all investors. I apply the interpretive power of textual analysis and regression to a corpus of SEC mergers and acquisitions public company filings between 1994-2017. Not only do I challenge the statistically significant correlation between word content and post-transaction abnormal stock returns, but I also characterize the effects of time segments, transaction size, and industry variation across time. As a final application, I consider sentiment analysis …


Executive Spotlight: Adam Chase, Kylan Rutherford Aug 2018

Executive Spotlight: Adam Chase, Kylan Rutherford

Marriott Student Review

Adam Chase, CEO of Chase Marketing, has branded his company "the accountability agency." He works to establish north star goals with clients, then works with his team to follow through with them until their achieved. He focuses all he does on people and developing their personal brands. Family and God are his north stars.


The Digital Global Supply Chain: The Growing Case For Blockchain Technology Expansion Within Global Supply Chain, Jonathan Chichoni, Scott Webb Aug 2018

The Digital Global Supply Chain: The Growing Case For Blockchain Technology Expansion Within Global Supply Chain, Jonathan Chichoni, Scott Webb

Marriott Student Review

In a competitive global market place, technology adoption and application in supply chain is becoming increasingly important as companies seek to acquire competitive advantages. Since blockchain’s advent to the global stage of modern disruptive technologies, several questions remain unanswered pertaining to the benefits that blockchain adoption poses to global supply chains. I apply a typology analysis to a corpus of company filings, press releases and industry studies to better understand the reasons for which global supply chains industry wide are adopting blockchain technology and the specific benefits which they seek to exploit through the use of blockchain. I characterize the …


Leadership Development: A Study Of Elon Musk, Ryan H. Yauney Aug 2018

Leadership Development: A Study Of Elon Musk, Ryan H. Yauney

Marriott Student Review

As one of the most prolific businessmen of our time, Elon Musk is the epitome of a successful leader. Not only has Elon Musk succeeded in the entrepreneurial realm with his many profitable startups, but he has been able to guide these companies along their paths of massive growth and into the national spotlight. This article discovers which key attributes of Musk help him thrive, and how developing a company’s office culture can produce similar attributes in their own management.


Buzzwords Aug 2018

Buzzwords

Marriott Student Review

No abstract provided.


Book Review - Drive: The Truth About What Motivates Us, Wyatt Pagano Apr 2018

Book Review - Drive: The Truth About What Motivates Us, Wyatt Pagano

Marriott Student Review

This is a book review of Drive: The Truth About What Motivates Us by Daniel Pink.


Getting To Yes: Negotiating Agreements Without Giving In, Spencer Evans Apr 2018

Getting To Yes: Negotiating Agreements Without Giving In, Spencer Evans

Marriott Student Review

Getting to Yes is full of tips, tricks, and techniques that will help you “get to yes” in all your negotiations. Getting to Yes takes superficial haggling to a new level, focused on creating value for both parties in the negotiation.