Accounting Commons^™

Out Of The Vacuum: The Effect Of Tax Liability Changes On Compliance In The Presence Of Withholding Position And Group Affiliation, Chelsea Rae Austin, Donna Bobek Schmitt, Spenser G. Seifert

Faculty Publications

Prior research has established that tax liability increases lead to decreased compliance. However, tax liability changes do not happen in a vacuum. Notably, prior research has also identified a withholding phenomenon: individuals in a tax due position are less compliant than those in a refund position. Additionally, tax law changes are often enacted in politically polarized environments. We examine how three factors—tax liability changes, withholding position, and group affiliation—combine to influence individuals' tax compliance decisions. Our experimental results show that a tax increase is universally experienced as a loss, even when coupled with a tax refund and enacted by an …

How Do Analysts Affect Corporate Innovation? Evidence From Site Visits, Qiang Cheng, Brian Yutao Wang, Holly I. Yang, Zheyuan Zhang

Research Collection School Of Accountancy

While prior studies have examined whether financial analysts affect corporate innovation, there is little research on the mechanism through which this occurs. In this paper, we examine whether and how analysts' questions about innovation during site visits affect corporate innovation. Using a sample of corporate site visits in China, we find that when analysts ask questions about innovation during site visits, firms invest more in R&D in the future. Consistent with knowledge diffusion across firms, this association is stronger when analysts cover more firms in the same industry, when firms share similar technologies as industry peers, and when an innovation-expert …

Firm Digitalization And Accounting Jobs, Amanda Awyong, Qiang Cheng, Tian Deng, Rencheng Wang

Research Collection School Of Accountancy

This study examines how firm digitalization affects the demand for corporate accountants and their digital skills. Using more than 373,000 job posts for corporate accountants by U.S. non-technology firms between 2010 and 2019, we find that firm digitalization does not change the overall demand for financial specialists-accountants who are responsible for financial reporting, budgeting, and forecasting-but reduces the demand for financial clerks-accountants who primarily perform administrative financial tasks. We further show that firms digitalization increases the demand for digital skills among financial specialists, but not among financial clerks, and that such demand is greater than that for other employees within …

In Crypto We Trust: A Cross-National Comparison Of Factors Affecting Trust In Cryptocurrencies, Arif Perdana, W. Eric Lee, Chu Yeong Lim, Gary Pan, Poh Sun Seow

Research Collection School Of Accountancy

Background: Trust in cryptocurrencies is a complex and evolving construct influenced by technological, economic, and social factors. Unlike traditional information systems that rely on institutional trust, cryptocurrency users often depend on underlying technology and community insights. Despite growing interest, existing research has primarily focused on narrow aspects of trust, with limited cross-national perspectives and comprehensive models.

Method: This study investigates how geographic differences impact user trust in cryptocurrencies by surveying 644 respondents from China, Germany, and the USA. Drawing on established trust formation theories, it utilizes a comprehensive model encompassing technological, economic, and social factors.

Results: Our analysis reveals multiple …

When Positive Sentiment Is Not So Positive: Textual Analytics And Bank Failures, Aparna Gupta, Cheng Lu, Majeed Simaan, Mohammed J. Zaki

Department of Accounting and Finance Faculty Scholarship and Creative Works

We examine U.S. publicly traded bank holding companies (BHCs) that failed during the 2007–2009 global financial crisis. Using consolidated data at the BHC level and 10-K filings, we investigate the determinants of bank failures during this period using nonlinear machine learning (ML). The in-sample analysis demonstrates that 90% of the failed banks can be classified during 2007–2009. In addition, our sensitivity analysis for interpretable ML shows that net tone is among the top five important features. However, the power of tone/text is less evident when we consider predictive (out-of-sample) analysis. While nonlinear ML models such as random forest and support …

Disproportionate Insider Control And The Cost Of Equity Capital: Evidence From U.S. Dual-Class Firms, Barry Hettler, Arno Forst, Lindsay Baran

School of Accountancy Faculty Publications

We investigate the cost of equity capital for U.S. dual-class firms. While prior literature finds a positive association between excess insider control and the cost of capital in international contexts, these results are primarily concentrated in countries with relatively weak investor protection and legal enforcement. It is therefore an open question whether these findings hold for the U.S. capital market. Additionally, we investigate a possible moderating role of the firm’s information environment on the association between disproportionate insider control and the cost of capital. We find the cost of equity capital for U.S. dual-class firms is, on average, approximately forty …

Valuing Firms Using The Price-To-Sales Ratio: A Practical Perspective, B. Brian Lee, Haeyoung Shin, Dong-Kyoon Kim

Southwestern Business Administration Journal

The price-to-earnings (P/E) ratio is a key financial metric used to assess a firm's value by comparing its stock price to earnings. However, the P/E ratio becomes ineffective for firms with losses (Joos & Plesko, 2005). In such cases, the price-to-sales (P/S) ratio is an alternative valuation metric. However, while the P/S ratio helps compare firms with similar business models, financial leverage can distort the interpretation of the P/S ratio, potentially misleading investors. This study offers practical guidance for accounting and finance professionals on enhancing the utility of the P/S ratio by considering leverage effects. Using 147,951 firm-year observations from …

Accounting Comparability And Value Relevance Of Accounting Information: Evidence From A Change In Revenue And Expense Recognition Rules, Brandon Ater, Emrah Ekici, Thomas Noland, Christian K. Sobngwi

School of Accountancy Faculty Publications

Purpose: The purpose of this paper is to examine the accounting comparability and value relevance implications of the changes in the accounting for freight services in-process introduced through the adoption of EITF No. 91-9.

Design/methodology/approach: This is an empirical archival research paper using financial statement data and stock price information for the US transportation companies.

Findings: The results indicate that following the adoption of EITF No. 91-9, there is an increase in the level of accounting comparability for firms in the US transportation industries. This paper also finds that the reduction in the number of reporting options for revenues and …

Kenneth Wilson Stringer [Inducted 2018], American Accounting Association

Accounting Hall of Fame Brochures

No abstract provided.

The Tax Adviser, Volume 9, Number 12, December 1978, American Institute Of Certified Public Accountants

Tax Adviser

No abstract provided.

Author Index, 12 Months Ended November 1978, American Institute Of Certified Public Accountants

Tax Adviser

No abstract provided.

Tax Trends, E. S. Linett

Tax Adviser

No abstract provided.

Spotlight, Robert F. Manning

Tax Adviser

No abstract provided.

Analysis Of The Final Sec. 83 Regulations, Lorence L. Bravenec

Tax Adviser

No abstract provided.

Tax Clinic, James E. Power

Tax Adviser

No abstract provided.

Puerto Rico Tollgate Tax On Dividends From A Sec. 936 Manufacturing Subsidiary, Donald J. Reid

Tax Adviser

No abstract provided.

’78 Act-Capital Gains And Tax Preferences, Gerald W. Padwe

Tax Adviser

No abstract provided.

The Tax Adviser, Volume 9, Number 11, November 1978, American Institute Of Certified Public Accountants

Tax Adviser

No abstract provided.

Author Index, 12 Months Ended October 1978, American Institute Of Certified Public Accountants

Tax Adviser

No abstract provided.

Subject Index, 12 Months Ended October 1978, American Institute Of Certified Public Accountants

Tax Adviser

No abstract provided.

Tax Trends, E. S. Linett

Tax Adviser

No abstract provided.

Washington Report: Capital Gains Provisions Of The ’78 Bill - An Explanation, Kenneth F. Thomas, William R. Stromsem

Tax Adviser

No abstract provided.

Spotlight, Robert F. Manning

Tax Adviser

No abstract provided.

Retirement Plans For Professional Corporations: Maximizing Benefits And Deductions, A. David Degann

Tax Adviser

No abstract provided.

Tax Clinic, Darwin Broenen

Tax Adviser

No abstract provided.

Sec. 305 “Redemption Premium” Concept, Edward A. Morgan

Tax Adviser

No abstract provided.

Elective Nonqualified Cash Deferred Compensation Plans In Light Of Prop. Regs. Sec. 1.61-16, Lawrence M. Wolfish

Tax Adviser

No abstract provided.

The Tax Adviser, Volume 9, Number 10, October 1978, American Institute Of Certified Public Accountants

Tax Adviser

No abstract provided.

Author Index, 12 Months Ended September 1978, American Institute Of Certified Public Accountants

Tax Adviser

No abstract provided.

Subject Index, 12 Months Ended September 1978, American Institute Of Certified Public Accountants

Tax Adviser

No abstract provided.