Research

2016

The Activities of Buy-Side Analysts and the Determinants of Their Stock Recommendations

August 

We survey 344 buy-side analysts from 181 investment firms and conduct 16 detailed follow-up interviews to gain insights into the activities of buy-side analysts, including the determinants of their compensation, the inputs […]

2015

Rotational Internal Audit Programs and Financial Reporting Quality: Do Compensating Controls Help?

July 

A report from the Institute of Internal Auditors finds that a majority of Fortune 500 companies systematically rotate internal auditors out of the internal audit function and into operational management (IIA 2009a). […]

Inside the “Black Box” of Sell-Side Financial Analysts

March 

Our objective is to penetrate the “black box” of sell-side financial analysts by providing new insights into the inputs analysts use and the incentives they face. We survey 365 analysts and conduct […]

Internal control quality: the role of auditor-provided tax services

July 

We propose that auditor-provided tax services (tax NAS) improve internal control quality by accelerating audit firm awareness of transactions material to the financial statements. Using data from 2004 to 2012, we find robust […]

Who’s Heard on the Street? Determinants and Consequences of Financial Analyst Coverage in the Business Press

March 

This study examines the determinants of financial analyst coverage in the business press and the effects of such coverage on analysts’ careers. Using a sample of business press articles that quote a […]

Federal Taxation of Business Organizations and Their Owners (2nd Edition)

May 

The book considers the Federal taxation of business organizations, emphasizing C corporations and S corporations. It is designed for use in professional programs in accounting and is adaptable for use both in […]

Does internal audit function quality deter management misconduct?

March 

Standard-setters believe high-quality internal audit functions (IAFs) serve as a key resource to audit committees for monitoring senior management. However, regulators do not enforce IAF quality or require disclosures relating to IAF […]

2014

Insolvent Banks

May 

This chapter covers the tax rules and planning considerations related to insolvent banks updated through January of 2014.

Litigation Risk and Agency Costs: Evidence from Nevada Corporate Law

November 

In 2001, Nevada significantly limited the personal legal liability of corporate officers and directors. We use this exogenous shock to implement a differences-in-differences design that examines the impact of officer and director […]

Foreign Banks Engaged in Business In the United States and Foreign Income of United States Banks

November 

This chapter publication represents an extensive revision of the subject matter concerning U.S. taxation of foreign banks and of foreign income of United States banks. The revision concerns the description and analysis […]

Empirical Evidence on Repeat Restatements

March 

This study examines the characteristics and market consequences of repeat restatements. We find that 38 percent of the restating companies in our sample restate at least twice between 2002 and 2008, and […]

Arachnophobia: A case on impairment and accounting ethics

November 

This case requires students to apply accounting and ethical decision-making within the context of a potential land impairment decision. Students are required to research the relevant professional literature and provide appropriate FASB […]

Bender’s 2015 Payroll Tax Guide

December 

This book provides a comprehensive analysis of and planning considerations related to federal and state employment taxes and social security benefits. The books covers each type of employment tax, including federal and […]

Tax services, consequence severity, and jurors’ assessment of auditor liability

January 

Purpose – The purpose of this research is to determine whether the type of tax services provided by a public accounting firm to its audit client and the consequence severity of an […]

Call of duty: A framework for auditor’s ethical decisions

April 

This chapter examines the concept of duty as it applies to audit professionalism. Providing professional literature, examples from practice, and research as support, we assert that duty as an ethical perspective is […]

Forward-Looking Voluntary Disclosure in Proxy Contests

December 

Using a unique, hand-gathered sample of 893 forward-looking voluntary disclosures by 70 proxy contest firms during 1992: 2001, we examine whether managers temporarily alter the frequency and tone of their disclosures during […]

Employee Compensation and Benefits Tax Guide, 2014 Edition

May 

Since the  publication of the first edition of this book in 2013, there have been a number of new statutory provisions, regulations, administrative rulings, and cases impacting the taxation of employee compensation […]

Bender’s 2014 Payroll Tax Guide–Special Table and Forms Supplement

January 

The supplement to the 2014 Bender’s Payroll Tax Guide contains updated tax rate schedules and tax tables and certain forms as well as certain updates to the text of this edition of […]

How Do Auditors Address Control Deficiencies that Bias Accounting Estimates?

September 

Auditors commonly rely on reviewing management’s estimation process to audit accounting estimates. When control deficiencies bias the estimation process, by creating omissions of critical inputs, standards require that auditors replace or supplement […]

Essentials of Federal Taxation

April 

The article discusses federal income taxation associated with investing in U.S. hedge funds. Topics addressed include the provision of hedge fund investment advice by certified public accountants (CPA), the tax return obligations […]

Common Trust Funds and Financial Securitization Trusts (FASITs)

May 

This chapter covers the law and related planning considerations concerning common trust funds and FASITs as used by banks and updated through January of 2014, including the application of the American Tax […]

Bank Holding Companies

May 

This chapter covers the tax rules and planning considerations concerning bank holding companies updated through January of 2014 .

Audit committee financial expertise and earnings management: the role of status

November 

Regulatory pressure to increase both audit committee financial expertise and board independence has resulted in lower status for audit committees relative to management. This status differential is relevant because expertise and relative […]

Predicting Credit Losses: Loan Fair Values Versus Historical Costs

January 

Standard setters and many investors argue that loan fair values provide more useful information about credit losses than historical cost information while bankers and others generally disagree. We examine the ability of […]

2013

Managerial Overconfidence and Accounting Conservatism

March 

Overconfident managers overestimate future returns from their firms’ investments. Thus, we predict that overconfident managers will tend to delay loss recognition and generally use less conservative accounting. Furthermore, we test whether external […]

Does a Lack of Choice Lead to Lower Quality? Evidence from Auditor Competition and Client Restatements

October 

We examine the relationship between auditor competition and the likelihood of financial restatements that occur as a result of failures in the application of generally accepted accounting principles (GAAP). Policy makers and […]

Obtaining assurance for financial statement audits and control audits when aspects of the financial reporting process are outsourced

June 

Businesses increasingly outsource organizational functions that have financial reporting implications, which requires auditors to adjust their risk assessment and audit procedures for this practice. However, PCAOB inspection reports cite deficiencies indicating that […]

Does Mandatory Adoption of IFRS Improve Accounting Quality? Preliminary Evidence

October 

We provide evidence on the preliminary effects of mandatory adoption of International Financial Reporting Standards (IFRS) on accounting quality for a relatively broad set of firms from 20 countries that adopted IFRS […]

Does Mandatory Adoption of IFRS Improve Accounting Quality? Preliminary Evidence

November 

We provide evidence on the preliminary effects of mandatory adoption of International Financial Reporting Standards (IFRS) on accounting quality for a relatively broad set of firms from 20 countries that adopted IFRS […]

Business Strategy, Financial Reporting Irregularities, and Audit Effort

June 

This study examines whether clients’ business strategies are a factor in determining the occurrence of financial reporting irregularities and the level of audit effort. We use the organizational strategy theory of Miles […]

An Empirical Analysis of The Effects of Monitoring Intensity on The Relation between Equity Incentives and Earnings Management

November 

Prior studies suggest that equity incentives inherently have both an interest alignment effect and an opportunistic financial reporting effect. We argue that which effect dominates depends upon the firm’s level of monitoring. […]

How Do Auditors Behave During Periods of Market Euphoria? The Case of Internet IPOs

March 

How do auditors behave during periods of market euphoria? To address this question, we study auditor going-concern opinions around the time of the wave of stressed Internet companies filing to go public […]

Bender’s 2014 Payroll Tax Guide

December 

This book provides a comprehensive analysis of and planning considerations related to federal and state employment taxes and social security benefits. The books covers each type of employment tax, including federal and […]

Auditors’ Internal Control over Financial Reporting Decisions: Analysis, Synthesis, and Research Directions

January 

We synthesize the literature on auditors’ evaluation of, and reporting on, internal control over financial reporting (ICOFR), as required by the Sarbanes-Oxley Act. The purpose of the synthesis is (1) to provide […]

Using Earnings Conference Calls to Identify Analysts with Superior Private Information

June 

We examine the extent to which analysts who participate in earnings conference calls by asking questions possess superior private information relative to analysts who do not ask questions. Using a large sample […]

Staggered Boards, Corporate Opacity and Firm Value

February 

We explore the effect of corporate opacity on the relation between staggered boards and firm value. We find that through mitigating takeover pressure, staggered boards become increasingly beneficial to firm value as […]

2012

Tax Avoidance: Does Tax-Specific Industry Expertise Make a Difference?

May 

This study investigates whether the tax-specific industry expertise of the external audit firm influences its clients’ level of tax avoidance. Our results suggest that clients purchasing tax services from their external audit […]

The Extent of Implicit Taxes at the Corporate Level and the Effect of TRA86

December 

The article examines the extent of corporate level implicit taxes, or the cross-sectional variations in pre-tax market returns which offset explicit tax variations and equalize the risk-adjusted, after-tax returns rate in the […]

The Impact of Religion on Financial Reporting Irregularities

March 

This study examines the impact of religion on financial reporting. We predict that firms in religious areas are less likely to engage in financial reporting irregularities because prior research links religiosity to […]

Internal Audit Outsourcing and the Risk of Misleading or Fraudulent Financial Reporting: Did Sarbanes-Oxley Get It Wrong?

December 

The Sarbanes-Oxley Act (SOX) prohibits companies from outsourcing internal audit work to their external audit provider, likely under the assumption that involvement in the internal audit function creates “economic bonding” between the […]

Engaging Students in the Politics of Tax Policy: The Tax Equity Survey Project

November 

Among other influences, the tax system of a democratic government reflects the many and varied attitudes, perceptions and values of its citizens. Understanding the determinants of attitudes and perceptions about the tax […]

The Impact of Religion on Financial Reporting Irregularities

March 

This study examines the impact of religion on financial reporting. We predict that firms in religious areas are less likely to engage in financial reporting irregularities because prior research links religiosity to […]

The Extent of Implicit Taxes at the Corporate Level and the Effect of TRA86

January 

We examine the extent of implicit taxes at the corporate level and the effect on implicit taxes of the Tax Reform Act of 1986 (TRA86) in the United States. Using a variety […]

The Pathways Commission on Accounting Higher Education: Charting a National Strategy for the Next Generation of Accountants

August 

The article presents information on the Pathways Commission on Accounting Higher Education. The commission was a joint endeavor by the American Accounting Association (AAA) and the American Institute of Certified Public Accountants […]

Reputation and Uncertainty in Online Markets: An Experimental Study

June 

This paper employs a modified investment game to study how online reputation ratings are assigned, and thus how electronic reputations are formed in transactions where buyers and sellers interact anonymously. Of particular […]