Annual Conference

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Accounting

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May 2022

Information Processing in a Transparent Market: Evidence from a DeFi Protocol

Danqi HU, Sarit MARKOVICH, Valerie ZHANG
We take advantage of a rare setting in a decentralized finance market (the MakerDao Lending Protocol), where each trader’s activities are freely and publicly available in real-time and recorded permanently to the blockchain, to examine traders’ mimicking behavior in this extremely transparent ma...
Keywords: blockchain, decentralized finance, transparency, processing costs
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Annual Conference

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Accounting, Senior Fellows/Fellows

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May 2022

Digitalization, Accounting Jobs, and Financial Reporting Quality

Qiang CHENG, Amanda AWYONG, Tian DENG, Rencheng WANG
This study examines the effect of firm digitalization on the demand for corporate accountants and their digital skills. Using 170,000 job posts for corporate accountants made by U.S. nontechnology firms during the 2011–2019 period, we find that firms that adopt digital technologies demand more dig...
Keywords: digitalization, accountants, digital skills, human capital, financial reporting quality
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Annual Conference

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Accounting

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May 2022

Knowledge is Power: A Field Experiment in the Chinese and US Stock Markets

Xiaofeng ZHAO, Bohui ZHANG, Sonia Man-Lai WONG, Yuan XUE
We conducted a field experiment by providing knowledge about the pricing implications of accounting accruals to investors in randomized stock groups via social media platforms in both China and the U.S. Treatment stocks experience a reduction in accrual mispricing relative to control stocks, and thi...
Keywords: Financial knowledge, accrual mispricing, investor education, field experiment, social media
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Annual Conference

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Sustainable and Green Finance

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May 2022

The Cost of ESG Investing

Laura LINDSEY, Seth PRUITT, Christoph SCHILLER
Even against increasing interest in socially responsible investing mandates, we find that implementing ESG strategies can cost nothing. Modifying optimal portfolio weights to achieve an ESG-investing tilt negligibly affects portfolio performance across a broad range of ESG measures and thresholds. T...
Keywords: ESG, IPCA, tangency portfolio, portfolio tilt, responsible investing, sustainable investing
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Annual Conference

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Sustainable and Green Finance

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May 2022

Polluted IPOs

Meng MIAO, Zhengyu ZUO, Wei WANG
Using location- and time-specific fine particulate matter pollution (PM2.5) data in Beijing, we document that regulators are more likely to approve IPOs in China on hazy days. Our results are robust to specifications that control for listing firms’ characteristics, the composition of the IPO revie...
Keywords: Air Pollution, IPO, Regulatory Oversight, China, Cognitive Ability, Mood
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