TY - CONF AB - This study examines the effect of audit on private firms’ cost of debt. We use a sample of 1,949 small private firms operating in the period 2006-2010 with optional financial statement audit. High quality data allows us to construct a more precise interest rate measure than existing studies employ. After controlling for obvious sources of demand for voluntary audits (ownership complexity, subsidiary status, bank relations), we find a robust central result that voluntary audits increase rather than decrease the cost of debt financing, contrary to several existing studies. This finding indicates that voluntary audits are generally treated as “adopting a label” and penalised by creditors, regardless of the perceived auditor quality as a result of the lemon problem in the audit market. Even Big-4 audits increase the cost of debt, likely as a result due to the lemon problem in the audit market, although the increase is smaller than for non-Big-4 audits. The results are sensitive to the estimation method used (OLS, Heckman’s two-step, PSM) and (sub-)sample selection. We show that disregarding the underlying assumptions of these estimation methods may lead to incorrect inferences. Additional analyses show that audited firms’ reported earnings are less informative about future operating performance than earnings of their unaudited counterparts. Our results also indicate that results are sensitive to cost of debt definition and this might have affected the results reported in the existing literature. AU - Kosi, Urska AU - Koren, Jerney AU - Valentincic, Aljosa ID - 37109 KW - private firms KW - voluntary audit KW - cost of debt KW - self-selection bias KW - lemon problem TI - Does Financial Statement Audit Reduce the Cost of Debt of Private Firms? ER - TY - CONF AU - Kosi, Urska AU - Florou, Annita AU - Pope, Peter F. ID - 37115 TI - Does Mandatory IFRS Adoption Improve the Credit Relevance of Accounting Information? ER - TY - JOUR AB - Private firms are likely to use the financial reporting process more for other objectives, such as tax savings, than for communicating performance. However, observing firms choosing accounting policies for tax-minimisation purposes is not straightforward due to (i) tax and non-tax costs of reporting lower income (ii) accounting policies that result in lower reported income and no tax savings but generate non-tax benefits (iii) preparers' multiple incentives and (iv) econometric issues. We observe a large sample of 20,505 private firms writing off assets in two separate regimes, one that generates tax savings and one that does not. Firms significantly decrease, but continue to use, write-offs after the adverse change in tax treatment of write-offs. The exogenous tax change should not affect other reporting incentives. This allows us to disentangle the tax-minimisation incentive from other (un-observable) incentives, including debt contracting, dividends and employee relations that contribute to the observed anomalous positive relationship between write-offs and profitability. We show that for private firms (i) obtaining tax savings is important overall (ii) non-tax costs and benefits are probably also important and (iii) earnings informativeness for future cash flows increases after the adverse tax legislation change. AU - Kosi, Urska AU - Valentincic, Aljosa ID - 3549 IS - 1 JF - European Accounting Review TI - Write-offs and profitability in private firms: Disentangling the impact of tax-minimisation incentives VL - 22 ER - TY - CONF AU - Florou, Annita AU - Kosi, Urska ID - 37110 TI - Does mandatory IFRS adoption facilitate debt financing? ER - TY - JOUR AU - Niemann, Rainer AU - Sureth-Sloane, Caren ID - 5045 IS - 2 JF - European Accounting Review SN - 0963-8180 TI - Sooner or Later? – Paradoxical Investment Effects of Capital Gains Taxation under Simultaneous Investment and Abandonment Flexibility VL - 22 ER - TY - JOUR AU - Vollert, Pia AU - Eikel, Carolin AU - Sureth-Sloane, Caren ID - 5048 IS - 4 JF - Steuer und Wirtschaft TI - Advance Pricing Agreements (APAs) als Instrument zur Vermeidung von Verrechnungspreiskonflikten – eine kritische Betrachtung VL - 90 ER - TY - CONF AU - Garnefeld, I. AU - Münkhoff, Eva AU - Raum, K. ID - 46697 T2 - 42nd EMAC Annual Conference, Istanbul TI - Threat and normative appeals to reduce product returns in online retailing – An effective marketing practice? ER - TY - CONF AU - Münkhoff, Eva AU - Garnefeld, I. AU - Bruns, A. ID - 46696 T2 - 42nd EMAC Annual Conference, Istanbul TI - How to prolong a sales promotion – Ex-post time extension versus reframing ER - TY - BOOK AU - Münkhoff, Eva ID - 46643 SN - 9783658021214 TI - Umsatz- und Profitabilitätsauswirkungen industrieller Dienstleistungen ER - TY - CHAP AU - Schneider, Martin ED - Heiko Hoßfeld, Renate Ortlieb ID - 4944 T2 - Macht und Employment Relations TI - "Gung Ho": Nationale Kultur und Schlanke Produktion in Ron Howards Spielfilm. ER - TY - JOUR AU - Reimsbach, Daniel ID - 47907 IS - 4 JF - Journal of Business Economics KW - Economics and Econometrics KW - Business and International Management SN - 0044-2372 TI - Pro forma earnings disclosure: the effects of non-GAAP earnings and earnings-before on investors’ information processing VL - 84 ER - TY - JOUR AB - ABSTRACTThis study examines how the disclosure of negative sustainability‐related incidents affects the investment‐related judgments of decision‐makers. Participants in a sequential 2 × 2 between‐subjects experiment first received a company's financial information before viewing additional sustainability information (by the company and by a non‐governmental organization (NGO); with and without negative disclosure). Results indicate that self‐reporting of negative incidents does not affect decision‐makers’ stock price estimates and investment decisions compared with judgments based on financial information only. However, third‐party disclosure of these incidents by a NGO has a negative affect on these investment‐related judgments. Furthermore, the magnitude of the NGO reporting effect depends on whether the company itself simultaneously reports these incidents. Thus, disclosing negative incidents in sustainability reporting could lose some of its apparent stigma. Instead of avoiding negative reporting altogether, managers might use it as a risk mitigation tool in their reporting strategy. The results also emphasize the power of the often‐mentioned ‘watchdog’ function of NGOs acting as stakeholder advocates. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment AU - Reimsbach, Daniel AU - Hahn, Rüdiger ID - 47911 IS - 4 JF - Business Strategy and the Environment KW - Management KW - Monitoring KW - Policy and Law KW - Strategy and Management KW - Geography KW - Planning and Development KW - Business and International Management SN - 0964-4733 TI - The Effects of Negative Incidents in Sustainability Reporting on Investors’ Judgments–an Experimental Study of Third‐party Versus Self‐disclosure in the Realm of Sustainable Development VL - 24 ER - TY - CHAP AU - Koch, Christian ED - Betz, Stefan ID - 50361 SN - 978-3-8300-7413-7 T2 - Industrielles Controlling - Planung, Steuerung und Kontrolle von Beschaffung, Produktion und Logistik TI - Einsatz der Risikoanalyse als Instrument des Investitionscontrollings ER - TY - CHAP AU - Puls, Christoph ED - Betz, Stefan ID - 50369 SN - 978-3-8300-7413-7 T2 - Industrielles Controlling - Planung, Steuerung und Kontrolle von Beschaffung, Produktion und Logistik TI - Kostenorientiertes Management von Logistikdienstleistern ER - TY - CHAP AU - Opitz, Oliver ED - Betz, Stefan ID - 50389 SN - 978-3-8300-7413-7 T2 - Industrielles Controlling - Planung, Steuerung und Kontrolle von Beschaffung, Produktion und Logistik TI - Integrierte, ökologieorientierte Produktlebenszyklusrechnung ER - TY - CHAP AU - Faupel, Christian ED - Betz, Stefan ID - 50400 SN - 978-3-8300-7413-7 T2 - Industrielles Controlling - Planung, Steuerung und Kontrolle von Beschaffung, Produktion und Logistik TI - Integrierte, ökologieorientierte Produktlebenszyklusrechnung ER - TY - JOUR AU - Garnefeld, I. AU - Steinhoff, Lena ID - 45734 IS - 1 JF - Journal of Service Management TI - Primacy versus Recency Effects in Extended Service Encounters VL - 24 ER - TY - CONF AU - Steinhoff, Lena AU - Palmatier, R. W. ID - 45749 T2 - Proceedings of the 42nd European Marketing Academy (EMAC) Conference, Istanbul TI - The Effect of Loyalty Programs on Target and Bystander Customers: A Customer Portfolio Perspective on Loyalty Program Performance ER - TY - GEN AU - Steinhoff, Lena AU - Palmatier, R. W. ID - 45756 TI - Understanding the Effectiveness of Loyalty Programs, Marketing Science Institute (MSI) Working Paper Series ER - TY - JOUR AU - Haake, Claus-Jochen AU - Martini, Jan Thomas ID - 2519 IS - 4 JF - Group Decision and Negotiation SN - 0926-2644 TI - Negotiating Transfer Prices VL - 22 ER -