Investors demand conditional conservatism to restrict managers' ability to opportunistically exploit unverifiable accounting estimates. The fair value estimation process is subject to verifiability concerns when market prices are unavailable and, thus, susceptible to managerial discretion. We explore whether banks' exposure to less-verifiable fair value estimates is associated with conditional conservatism. General and bank-specific conservatism measures indicate that banks with greater proportions of less-verifiable fair value assets exhibit more conditional conservatism. Cross-sectional analyses provide evidence that this relation varies predictably with investor-demand and manager-supply proxies. Further analyses indicate that monitoring institutional investors drive the demand for conservatism. We identify high-quality auditors and board independence as two mechanisms used to invoke conservatism. Findings are robust to the exclusion of fair value earnings components, suggesting that the effect is not confined to fair value accounts. Together, our results indicate that less-verifiable fair value estimates generate demand for conditional conservatism in the financial industry.
We examine the link between information produced by auditors and analysts and fraud duration. Using a hazard model, we analyze misstatement periods related to SEC accounting and auditing enforcement releases (AAERs) between 1982 and 2012. Results suggest that misconduct is more likely to end just after fi rms announce an auditor switch or issue audited fi nancial statements, particularly when the audit report contains explanatory language. Analyst following increases the fraud termination hazard. However, increases (decreases) in analyst coverage have a negative (positive) marginal impact on the termination hazard, suggesting that analysts signal whistleblowers with their choice to add or drop coverage. Finally, our results suggest that misconduct lasts longer when it is well planned, more complex, or involves more accrual manipulation. Taken together, our fi ndings are consistent with auditors and analysts playing a key informational role in fraud detection, while managerial effort to conceal misconduct signifi cantly extends its duration.
The British Medical Journal has recently started making visual abstracts to summarise published research studies. These 1024 × 1024 px images give a quick overview of a trial’s participants, design, and key findings. These visual abstracts are designed to help busy health professionals and researchers get a quick overview of newly published research. The present article describes simple pragmatic evaluations of these visual abstracts: analysis of social media stats and an opportunistic reader survey. Our goals were to identify how useful our readers found this new visual format, and whether there were any improvements we could make. The social media stats were initially very promising. Longer term performance over several visual abstracts, however, was not as strong, suggesting a possible halo effect provided by the novelty of a new presentation format. The survey proved to be a quick and valuable way of getting feedback on the design of the initial template, and resulted in several design adjustments.
jobs was generally not warranted by the type of their disability. Roughly half of the leg amputees were in occupations which required prolonged standing, such as fitters, welders, and assemblers; or walking and car-driving-e.g., factory inspectors, salesmen, roundsmen; or even heavy lifting-e.g., stokers and railway porters. About a third of the arm amputees were in occupations which required great manual skill, such as fitters and welders. About two-thirds of the amputees were satisfied with their employment. Those who were dissatisfied complained that their occupations were too strenuous, were only temporary and must come to an end after the war, were too monotonous, or did not give them enough scope or a chance of promotion.The majority of the blinded who were examined were happy at their work; a small minority stated that their jobs were boring in view of their intellectual capacities and aspirations. The war-blinded studied were employed on progress chasing, splicing, viewing, fuel-tank pressure testing, building up air intakes, identifying, assembling, machine-operating, and deburring; one was a tobacconist, anal another-a work-shy hysterical individual-a sweeper. The progress chaser and the sweeper were semi-sighted. Monocular men could not be followed up into civilian life. Summary 405 war-disabled persons were psychiatrically examined (200 amputees, 103 blinded, and 102 who had lost vision in one eye).Their emotional, social, and occupational difficulties are discussed. The physical handicaps of monocular persons are negligible. Physical handicaps apart, the difficulties are predominantly emotional in the one-eyed, social in the blinded, and occupational in the limbless.Rehabilitation of the war-disabled can only be successful if due regard is given to their emotional, social, occupational, and financial situations.My thanks are due to the Army authorities for permission to publish this article. OXALURIA IN BRITISH TROOPS
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