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To better understand how equity investors influence earnings quality, we compare the quality of accounting numbers produced by two types of public firms – those with publicly-traded equity and those with privately-held equity that are nonetheless considered public by virtue of having publicly-traded debt. We develop and test two hypotheses. The " demand "(More)
  • B R A D B A D E R T S C H, B J O R N J O R G E N S E N, S H A R O N K A T Z, ‡ A N D W I L L I A M K I N N, Chris Armstrong, Dirk Black, Jeff Burks +34 others
  • 2014
To what degree are audit fees for U.S. firms with publicly traded equity higher than fees for otherwise similar firms with private equity? The answer is potentially important for evaluating regulatory regime design efficiency and for understanding audit demand and production economics. For U.S. firms with publicly traded debt, we hold constant the(More)
Using a sample of secured syndicated loans, I explore the use of intangible assets as loan collateral and whether this credit practice was an innovation or a negative mutation in the corporate loan market. While intangible assets were not traditionally considered as eligible collateral, I find that twenty-one percent of U.S.-originated secured syndicated(More)
for helpful comments and discussions. I am also thankful to a managing director at Morgan Stanley who shared with me some of his knowledge on debt markets and distressed debt investing. I appreciate comments and suggestions from workshop participants at the Virginia. I thank Michael Roberts for providing the link table between the COMPUSTAT and Dealscan(More)
Using a sample of public bonds issued by privately-owned and publicly-owned companies we find that, after controlling for financial fundamentals, bond characteristics, and information environment effects, the cost of public debt issued by privately-owned companies as captured by ratings and yield spreads is significantly higher than that issued by(More)
Very preliminary. Please do not share or quote without permission. and participants of the brownbag seminar at Columbia University for their helpful comments and suggestions. Any remaining errors are our own. Abstract We investigate the effect of ETF trading activity on the informational efficiency of underlying securities. We find that ETF trading(More)
Using a sample of public bonds issued by privately-owned and publicly-owned companies we find that, after controlling for financial fundamentals and information environment effects, the cost of public debt issued by privately-owned companies as captured by ratings and yield spreads is significantly higher than that issued by publicly-owned companies. This(More)
This paper examines the economic e¤ects of increased lending to constrained …rms during the recent …nancial crisis. We exploit an accounting change to the de…nition of …rm equity, which provided an exogenous shock to some …rms'debt capacity during the heart of the crisis, to isolate the causal e¤ect on constrained …rms. We …nd that …rms that bene…tted from(More)
Although managers possess superior firm-level information, recent studies document that management forecasts are less accurate than analyst forecasts. The differences in accuracy can be due to differences in biases, differences in forecast efficiency, or both. We test these hypotheses by comparing investors' earnings expectations, as reflected in stock(More)
In recent years, there has been increased scrutiny of financial reporting and greater analysts and investors attention to indicators of potential earnings management, in particular, to cash and accruals relative to earnings and sales. We assert that, in response, firms have increased their focus on cash management aimed at aligning these variables, which(More)