期刊｜《Journal of Accounting and Public Policy》2017年第2期

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目录

1.The stock market reaction to losing or gaining foreign private issuer status

2. Antitakeover legislation and accounting conservatism: New evidence

3. Managerial ability, political connections, and fraudulent financial reporting in China

4. Does timeliness of financial information matter in the governmental sector? 

1. The stock market reaction to losing or gaining foreign private issuer status

Journal of Accounting and Public Policy2017(2):101-118

Brian M. Burnett, Bjorn N. Jorgensen, Troy J. Pollard

Abstract

The U.S. Securities and Exchange Commission designates foreign-domiciled firms with securities trading in the U.S. markets as either foreign private issuers (FPIs) or domestic filers and permits exemptions from U.S. domestic securities regulation for firms that qualify as FPIs. We study the stock market reaction to foreign-domiciled firms that lose or gain FPI status for an arguably exogenous reason while maintaining their cross-listing status. After loss of FPI status, foreign firms are required to comply with U.S. domestic issuers’ continuous filing requirements, such as filing quarterly financial statements using U.S. GAAP, disclosure of insider trading, and compliance with corporate governance requirements of U.S. domestic issuers. We document a significantly positive market reaction when foreign firms lose their exemptions and must comply with regulatory requirements of U.S. domestic issuers. Further, we find that the market reacts negatively to an increase in financial statement requirements and reacts positively to fully adopting U.S. corporate governance requirements.

Keywords

Corporate governance; Financial reporting; Foreign private issuer; Market reaction

2. Antitakeover legislation and accounting conservatism: New evidence

Journal of Accounting and Public Policy2017(2):119-140

Shijun Cheng, Augustine Duru, Yijiang Zhao

Abstract

We examine the effect of second-generation state antitakeover laws (ATLs) on accounting conservatism. We adopt a novel methodology that corrects for selection bias resulting from firms’ endogenous incorporation decision. Focusing on the period from when these ATLs became constitutional, we find a negative association between ATLs and conservatism. Our results suggest that ATLs decrease debtholder demand for conservatism by reducing agency costs of debt.

Keywords

State antitakeover laws; Accounting conservatism; Debtholder demand; Agency costs of debt

3. Managerial ability, political connections, and fraudulent financial reporting in China

Journal of Accounting and Public Policy2017(2):141-162

Zhi Wang, Mei-Hui Chen, Chen Lung Chin

Abstract

The primary objective of this paper is to examine the associations among managerial ability, political connections and enforcement actions for financial reporting misrepresentation(hereafter financial reporting fraud) in China. Using a sample of listed firms in China during 2007–2012, we first find that increased managerial ability leads to less financial reporting fraud. Second, political connections of firms can weaken or limit the effect of managerialability on the likelihood of financial statement fraud. Further analyses indicate that the results are primarily driven by non-state-owned firms, rather than state-owned firms.Finally, we further find that firms with capable managers face less severe penalties by the regulatory agencies relative to those without capable managers.

Keywords

Managerial ability; Political connections; Fraudulent financial reporting

4. Does timeliness of financial information matter in the governmental sector? 

Journal of Accounting and Public Policy2017(2):163-176

Christopher T. Edmonds, Jennifer E. Edmonds, Beth Y. Vermeer, Thomas E. Vermeer

Abstract

The purpose of our study is to investigate whether the timeliness of annual financial statements included in an official registration statement impacts the initial yield and the initial rating of general obligation municipal bonds. Using hand-collected data from 1058 official registration statements, we find that total information delay, comprised of two component time periods (i.e., audit delay and post audit delay), is significantly associated with higher municipal debt costs and lower bond ratings. Our findings also support the prediction that municipal investors charge a larger risk premium for untimely information when default risk is high. Overall, our results suggest that future municipal bond studies should consider total information delay, rather than solely audit delay, when examining/controlling for the timeliness of governmental financial statements. Our findings also provide important empirical evidence supporting recent SEC and GASB initiatives to improve municipal reporting and disclosure, especially the need to develop interim financial reporting standards.

Keywords:

Timeliness; Financial statements; Municipal bonds

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资料收集：李彦慧

本期编辑：姜   悦