Showing 1 - 10 of 11
This paper proposes a copayment scheme to prevent collusion in auditing contracts, offering as a solution to financial misreporting. In the copayment scheme, both the client firm and a third party, such as PCAOB, are asked to share the auditing fee. The key feature of the copayment scheme is...
Persistent link: https://www.econbiz.de/10011208484
We examine strategic delegation in a multiproduct mixed duopoly with nonprofit organization (NPO) and for‐profit organization (FPO). We will demonstrate that the nonprofitable mission service can reduce both the interest conflicts between the NPO and FPO owners and those between the NPO owner...
Persistent link: https://www.econbiz.de/10011005985
In this paper we develop a model to examine the effect of information technology (IT) in the banking industry. IT can reduce operational cost and create network externality. Empirical studies, however, have shown inconsistency, the so-called Solow paradox, which we explain by stressing the...
Persistent link: https://www.econbiz.de/10005177436
We address the informational and strategic impacts of real earnings management (REM) in a two-period oligopoly model with one-sided information. For the strategic impacts of REM, once the demand falls short of expectation, a firm should raise the price instead of cutting it to reach the earnings...
Persistent link: https://www.econbiz.de/10009364320
We examine the relation between firms' financial structures and their risky investment strategies in Taiwan's banking industry. Regressions cover two subperiods: before the first financial reform (1996-2000) and after the first financial reform (2001-2006), to address the impacts of the first...
Persistent link: https://www.econbiz.de/10008871394
Persistent link: https://www.econbiz.de/10005171166
Overreactions and other behavioral effects in stock prices can best be examined by adjusting for the changes in fundamentals. We perform this by subtracting the relative price changes in the net asset value (NAV) from that of market price (MP) daily for 134 406 data points of closed-end funds...
Persistent link: https://www.econbiz.de/10005495738
Persistent link: https://www.econbiz.de/10005499217
We investigate the price dynamics of large market-capitalization U.S. equity exchange-traded funds (ETFs) in order to uncover trader motivations and strategy. We show that prices of highly liquid ETFs can deviate significantly from their daily net asset values. By adjusting for changes in...
Persistent link: https://www.econbiz.de/10011077601
An experimental asset market is used to test the effect of news concerning the underlying value of an asset on its trading price. Participants were divided into two groups and received different expected earnings values. Statistical support is found for the hypothesis that investors underreact...
Persistent link: https://www.econbiz.de/10010817441