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Accounting Dissertations

2014

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Full-Text Articles in Accounting

Tax Receivable Agreements In Initial Public Offerings: An Analysis Of The Innovation Incorporated In Ipo Agreements, Amy Foshee Holmes Jan 2014

Tax Receivable Agreements In Initial Public Offerings: An Analysis Of The Innovation Incorporated In Ipo Agreements, Amy Foshee Holmes

Accounting Dissertations

A Tax Receivable Agreement (TRA) is a binding commitment between a newly public firm and the firm's founders to include a tax-sharing arrangement, obligating the IPO firm to make annual cash payments to the pre-IPO owners. The opportunity for shared tax benefits arises when the pre-IPO owners sell equity and achieve a step-up in basis of assets for the IPO firm. The newly created tax assets and the prior existing tax assets can offset future taxable income at ordinary corporate tax rates. This tax-sharing arrangement will typically provide for payments of 85 percent of the tax savings. This type of …


The Interactions Between Real Earnings Management And Short Selling Activity, Yu Zhang Jan 2014

The Interactions Between Real Earnings Management And Short Selling Activity, Yu Zhang

Accounting Dissertations

This study builds on two streams of literature that recently draw the attention of researchers: real earnings management (REM) and short selling. Graham et al. (2005) reports that managers choose REM over accounting methods to manage earnings. The survey results suggest that REM is likely to be more prevalent than accrual-based earnings management, and should deserve more attention from academic research. Short selling has become a big concern to researchers due to the recent financial crisis and the combat against naked short sales. I empirically test how short sellers trade on firms' REM information, and whether short selling activity can …


The Moderating Effect Of Perceived Ethical Leadership On Reduced Audit Quality Behaviors, Kimberly J. Webb Jan 2014

The Moderating Effect Of Perceived Ethical Leadership On Reduced Audit Quality Behaviors, Kimberly J. Webb

Accounting Dissertations

As auditors perform the audit, they are faced with many decisions that ultimately affect the quality of the audit and can lead to the issuance of an improper audit opinion such as accepting weak management explanations without corroborating evidence, superficial review of client documentation, premature sign off of audit procedures, or underreporting of time spent on audit task. In this study, I investigate the impact of the perceived ethical leadership (EL) of the audit supervisor upon the auditor's propensity to engage in reduced audit quality (RAQ) acts. This question is of particular interest considering the renewed focus placed upon audit …


Real Earnings Management, Habitually Meeting/Closely Beating Analysts' Forecasts, And Firms' Long-Term Economic Performance, Fanghong Jiao Jan 2014

Real Earnings Management, Habitually Meeting/Closely Beating Analysts' Forecasts, And Firms' Long-Term Economic Performance, Fanghong Jiao

Accounting Dissertations

Real earnings management (REM) has gained more attention due to its more extensive application than that before the enactment of Sarbanes-Oxley Act (SOX). Analysts' earnings forecast is an important benchmark for both the investors and the managers. Gunny (2010) finds that the signaling of future prospects overcomes the possibility of opportunism in firms that occasionally use REM to meet/closely beat benchmarks. However, the effect of repeatedly using REM to meet/beat earnings benchmarks has not been explored. This paper examines the long-term economic performance (Tobin's Q) of firms that utilize REM to habitually meet/closely beat analysts' earnings forecasts (HabitMBE). The results …


Agency Costs, Ceo Compensation, And Leasing Activities, Linying Zhou Jan 2014

Agency Costs, Ceo Compensation, And Leasing Activities, Linying Zhou

Accounting Dissertations

Various elements in firms' capital structures have been documented to be associated with conflicts of interests among shareholders, creditors, and managers. In this paper, I hypothesize that the use of leases affects manager incentives and mitigates the conflicts of interests between shareholders and bondholders. I test this hypothesis by examining whether leasing shares in the capital structure are associated with CEO pay-performance sensitivity. My results show that a firm's leasing share is positively associated with its CEO's pay-performance sensitivity, suggesting that leasing activities reduce the agency cost of debt financing. My results remain robust after controlling for recognized mechanisms of …