涩里番

Influential Chief Marketing Officers and Management Revenue Forecasts

Authors: David S. Koo and Dongyoung Lee

Publication: The Accounting Review, Forthcoming

Abstract:

We examine the role of the chief marketing officer (CMO) in corporate voluntary disclosure of future revenues. Using a sample of S&P 1500 firms for the period from 2003 to 2011, we find that the presence of an influential CMO in top management is positively associated with the likelihood of a firm's issuing a management revenue forecast. We also find that firms with an influential CMO provide more accurate revenue forecasts than other firms. These findings extend to long-window change analyses and are robust to the use of a propensity-score matched-pair approach. Overall, the results are consistent with the notion that CMO influence in top management appears to play an important role in voluntary revenue disclosures.

Read abstract: The Accounting Review

Does the Presence of Female Executives Curb Earnings Management? Evidence from Korea

Authors: Hyun Ah Kim, Seok Woo Jeong, Tony Kang and Dongyoung Lee

Publication: Australian Accounting Review, Vol. 27, No. 4, December 2017

Abstract:

Value is in the Eye of the Beholder: The Relative Valuation Roles of Earnings and Book Value in Merger Pricing

Author: MaryJane Rabier聽

Publication: The Accounting Review, Vol. 93, No. 1, 2018, pp. 335-362

Abstract:

Gupta and Gerchek (2002) argue that different acquirers can arrive at different equity valuations for the same target depending on their strategic intent. A reason for acquirers' equity valuations to vary, holding target fundamentals constant, may be that individual acquirers place different weights on underlying fundamentals. I examine this possibility using Burgstahler and Dichev (1997)'s theoretical framework. They argue that the relative importance of earnings and book value depends on expected adaptation, which is the likelihood that the existing earnings generating process will be altered. Using restructuring costs to proxy for expected adaptation at the individual acquirer level, I find that the association between the target's earnings (book value) and acquirers' bid prices is decreasing (increasing) in expected adaptation, consistent with theoretical predictions. These findings are less pronounced during merger waves and intense bid competition for the target.

Read full article: The Accounting Review

Acquisition Motives and the Distribution of Acquisition Performance

Author: MaryJane Rabier

Publication: Strategic Management Journal, Vol. 38, No. 13, 2017

础产蝉迟谤补肠迟:听

Research summary:

I examine how acquisition motives relate to the distribution of post-acquisition performance. I argue that acquisitions motivated by operating synergies have the potential to experience greater gains than acquisitions driven by financial synergies but are harder to value and implement, making them more uncertain. Using SEC filings, conference calls and press releases to capture acquisition motives, I find that acquirers pursuing operating synergies are more likely to experience highly positive and highly negative long-term returns than acquirers pursuing financial synergies.

I also find that acquisition experience and geographic proximity to targets soften acquirers' extreme downside outcomes in operating synergy acquisitions. My theory and results suggest that approaches that emphasize average outcomes for acquirers and use industry classifications to capture acquisition motives may be incomplete.

Managerial summary:聽

Managers engage in acquisitions for various reasons. In this study, I find that reasons related to operating synergies (e.g., revenue growth through new product offerings or cost savings through economies of scale) are more likely to result in extreme high and low performance outcomes for the acquiring firm compared to reasons related to financial synergies (e.g., diversification of cash flow streams).

In addition, I find that the acquirer's prior acquisition experience and the geographic proximity between the target and acquirer help soften the extreme low performance outcomes related to operating synergies.聽

Read full article: Strategic Management Journal

A little adrenaline goes a long way when it comes to business perspectives

A blog post at Virgin.com looks at how adventure-seeking CEOs come at business from a more open, experimental angle.

Desautels Professor Jingjing Zhang鈥檚 research shows that chief execs who fly small airplanes in their off-hours tend to be more open to innovation.

Who鈥檚 Watching? Accountability in Different Audit Regimes and the Effects on Auditors鈥� Professional Skepticism

Authors: Florian聽Hoos,聽 Jorien聽Louise聽Pruijssers, Michel聽W.聽Lander

Publication: Journal of Business Ethics, Forthcoming

Abstract:

Desautels researchers link thrill-seeking CEOs to increased innovation

CEOs with a real taste for excitement can be a company鈥檚 best bet for upping its innovation cred, according to a paper co-authored by a Desautels professor Jingjing Zhang.

The paper studied 88 CEOs who were pilots, comparing them to 1,123 non-pilot chief executives over ten years. Pilot CEOs helped increase their companies鈥� patents by almost 67 per cent.

Jingjing Zhang awarded 2017 FRQSC New Academics Grant

Jingjing Zhang, Assistant Professor in Accounting, was recently awarded a 2017 FRQSC New Academics Grant for her project "Effet d鈥檈ntra卯nement r茅glementaire transfrontalier : impact des r茅formes du processus de notation aux 脡tats-Unis sur la notation des obligations des soci茅t茅s canadiennes. / Cross-Border Regulatory Spillover: The Effect of U.S. Credit Rating Reforms on Canada鈥檚 Corporate Bond Ratings".

Professor Steve Fortin appointed to Accounting Standards Board

Professor Steve Fortin, CPA, CA has been named to the Financial Reporting Accounting Standards Board (AcSB). The AcSB聽is an independent body with the authority to establish accounting standards for use by all Canadian entities outside the public sector.

Adventurous CEOs make great innovators

According to a study performed in part by Desautels Assistant Professor of Accounting Jingjing Zhang, when it comes to chasing innovation, companies with risk-loving CEOs tend to pursue more original projects and 鈥済enerate more patents with greater market impact than their peers.鈥� This is because thrill-seeking personalities tend to be more open to new ideas, which translates well into the business space.

Pilot CEOs and corporate innovation

Authors: Jayanthi Sundera, Shyam V. Sundera, Jingjing Zhang

Publication: Journal of Financial Economics,聽Vol. 123, No. 1, 2017

Abstract:

24 Desautels undergraduate accounting students recently received scholarships from the Order of CPAs of Quebec!

Congratulations to Gabriel Alary, Marc-Andr茅 Benoit, Jenny Bradley-Tessier, Michael Cohen, Richard Despatie, Luisa Di Benedetto, Nicolas Glaudemans, Kaihua He, Nathaniel Kirsh, Christina Kontaxis, C茅dric Lalonde-McNicoll, Elizabeth Lefebvre, Antoine Legault, Patrick Lorange, Matthew Minuk, Marc-Benoit Roch, Adam Shapiro, Sebastian Soch, Arina Tcherniavskaia, Xinning Zheng and Kaixin Zheng for receiving 21 of the 100 scholarships awarded in Quebec based on academic performance and extra-curric

涩里番's dynamic duo receive Top 8 Academic All-Canadian commendation from Governor General

Two student-athletes from 涩里番 were among the CIS Top Eight Academic All-Canadians honoured by His Excellency the Right Honourable David Johnston, Governor General of Canada -- and former principal at 涩里番 -- at Rideau Hall in the nation's capital, Monday.聽Mariam Sylla, a basketball player and pharmacology student, as well as聽Cedric McNicoll, a hockey player and accounting major in the Desautels faculty of management, w