Annual Conference

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Accounting

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May 2019

This paper uses variation in real estate prices to test whether CEOs are paid for luck or to respond to luck. We distinguish between pay for luck and pay for responding to luck by exploiting GAAP accounting rules. In the United States, real estate used in the firm’s operations is not marked-to-mar...
Keywords: CEO compensation, Real Estate Prices, luck
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Annual Conference

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Accounting, Senior Fellows/Fellows

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May 2019

Given the importance of transparency for the governance, efficiency, and stability of banks, we evaluate whether economic shocks that relax a bank’s dependence on external capital markets alter the cost-benefit calculations of bank managers concerning voluntary information disclosure. We measure i...
Keywords: Bank Transparency, Information Production, Deposit Supply
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Annual Conference

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Accounting

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May 2019

Little is known about the effects of accounting regulation on private insurers. In this paper, we examine the uniqueness of the tax deductibility of insurers' loss accruals. We find that private insurers' overstatement of loss accruals in tax planning significantly decreases after adoption of the St...
Keywords: Loss provisions, Corporate taxation, Insurance companies, SSAP 101
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Annual Conference

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Accounting, Senior Fellows/Fellows

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May 2019

We examine the effect of sovereign credit rating downgrades on firms’ earnings management. Using the exogenous variation in credit ratings caused by sovereign rating downgrades from 61 countries, we show that firms reduce discretionary accruals after sovereign downgrades and are likely to experien...
Keywords: Sovereign downgrade, Ceiling rule, Credit rating, Earnings Management, Big bath accounting
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Annual Conference

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Accounting

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May 2019

This paper examines whether, in an autocratic regime such as China, social media that rely on the wisdom of crowds correct the bias of state-controlled traditional media by supplying less optimistically biased information to the market. Using a comprehensive sample of Chinese newsppaper corporate ne...
Keywords: Social media, bias, Stock Return
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