本文精选了会计经济学国际顶刊《Journal of Accounting and Economics》近期发表的论文，提供会计经济学研究领域最新的学术动态。

The effect of bond market transparency on bank loan contracting

原刊和作者：

Journal of Accounting and Economics Volume 75, Issue2-3

Mahfuz Chy （University of Missouri）

Hoyoun Kyung （University of Missouri）

Abstract

We find that bond issuers receive bank loans with 12% fewer covenants when the secondary corporate bond market becomes more transparent. The treatment effect is more pronounced when bond trades are more informative, when stock prices are less informative, and when the likelihood of future debt-equity agency conflicts is higher. The evidence suggests that bond prices reflect forward-looking information that mitigates banks’ information risk in debt contracting. As such, banks impose fewer contractual restrictions on bond issuers when bond transactions become publicly observable. We find consistent results using a hand-collected dataset of negative covenants. Treatment firms are also less likely to subsequently renegotiate borrowing terms. Finally, we find corroborating evidence from new primary bond issues. Taken together, our findings suggest that public bond market frictions affect private debt contract design.

Link: https://doi.org/10.1016/j.jacceco.2022.101536

A reexamination of investors' reaction to tax shelter news: Evidence from the Luxembourg tax leaks

原刊和作者：

Journal of Accounting and Economics Volume 75, Issue2-3

Wayne L. Nesbitt （Michigan State University）

Edmund Outslay （Michigan State University）

Anh V. Persson （University of Illinois Urbana-Champaign）

Abstract

This study examines the stock market reaction to the unprecedented leaks of confidential advance tax rulings between Luxembourg and multinational corporations—also known as the “LuxLeaks.” Contrary to the negative market reaction to tax shelter news documented in prior research, we find that investors responded positively to these leaks. This reaction is concentrated among U.S. firms. Furthermore, we document a positive association between abnormal returns and the reduction in firms' tax uncertainty, consistent with a downward revision in investors' perception of the tax uncertainty associated with the firms' Luxembourg operations. We also investigate other firm characteristics and find that, among U.S. firms, investors' reaction is weaker for those over-invested in tax avoidance. Among non-U.S. firms, the market response is muted by concerns about the quality of governance. In summary, our results suggest that investors' reaction to tax shelter news is conditional on their reassessment of the firms' tax uncertainty.

Link: https://doi.org/10.1016/j.jacceco.2022.101537

Assurance level choice, CPA fees, and financial reporting benefits: Inferences from U.S. private firms

原刊和作者：

Journal of Accounting and Economics Volume 75, Issue2-3

Brad A. Badertscher （University of Notre Dame）

Jaewoo Kim （University of Oregon）

William R. Kinney Jr. （University of Texas at Austin）

Edward Owens （University of Utah）

Abstract

Many U.S. private firms choose either a financial statement compilation or review rather than the higher assurance provided by an audit, yet little is known about these choices. We explore economic aspects of private firm choice of less-than-audit levels of assurance applied to GAAP-based financial statements. We find that CPA fees more than double for each increment in assurance. Commonly used financial reporting quality proxies are higher for both reviews and audits relative to compilations but are statistically indistinguishable on average between reviews and audits. Cost of debt is significantly lower for reviews than for compilations and significantly lower for audits than for reviews. Finally, we find that assurance level choices are associated with bank debt, trade credit, and potential internal information reliability and control concerns.

Link: https://doi.org/10.1016/j.jacceco.2022.101551

Political euphoria and corporate disclosures: An investigation of CEO partisan alignment with the president of the United States

原刊和作者：

Journal of Accounting and Economics Volume 75, Issue2-3

Mazhar Arikan （University of Kansas）

Mehmet Kara （University of Kansas）

Adi Masli （University of Kansas）

Yaoyi Xi （San Diego State University）

Abstract

We examine how the partisan alignment between chief executive officers (CEOs) and the United States president influences corporate disclosure outcomes. We predict and find evidence that more partisan-aligned CEOs display greater optimism in their corporate disclosures. CEO partisan alignment is positively associated with the likelihood of issuing a management earnings forecast and issuing overly optimistic forecasts. More partisan-aligned CEOs also use a more optimistic tone in the corporate disclosure and exhibit a lower level of accounting conservatism. Our findings suggest that time-varying beliefs of CEOs formed by the political environment can shape corporate disclosures.

Link: https://doi.org/10.1016/j.jacceco.2022.101552

Do tax-based proprietary costs discourage public listing?

Journal of Accounting and Economics Volume 75, Issue2-3

Benjamin P. Yost （Boston College）

Abstract

This study investigates whether tax-based proprietary costs associated with being a public firm (i.e., costs resulting from increased visibility to the tax authority) discourage public listing. I exploit the introduction of a mandatory disclosure requirement (FIN 48) which generated a signal to the government regarding the uncertainty of public firms’ tax positions, allowing for more carefully targeted audits. I hypothesize and find evidence of an increased propensity to go private by public, tax aggressive firms following the enactment of the disclosure rule but prior to its adoption. Cross-sectionally, the effect is stronger among firms that are more sensitive to tax-based proprietary costs. Moreover, IPOs by tax aggressive firms exhibit a relative decline after FIN 48, consistent with the disclosure requirement deterring private, tax aggressive firms from going public. Overall, my findings suggest that mandatory disclosure rules imposing tax-based proprietary costs may discourage some firms from operating as public entities.

Link: https://doi.org/10.1016/j.jacceco.2022.101553