Impact of Job Complexity and Performance on CFO Compensation

Prior research suggests that Big 4 auditors provide higher quality audits by virtue of their large size. Still, the recent reforms mandated by the Sarbanes Oxley Act – by increasing client and auditor incentives for accurate reporting – may have narrowed audit quality differences across auditor groups. In this paper, we examine audit quality for Big 4 and Mid-tier auditors during 2003-06 and include clients of other smaller audit firms for comparison purposes. We examine actual audit quality (as proxied by earnings management metrics) as well as perceived audit quality (as proxied by the client- and year-specific eloading and ex ante equity risk premium metrics). We include in our analysis only those Big 4 clients for whom the Mid-tier firms are potentially viable as auditors. Relative to other smaller audit firm clients, we find Big 4 and Mid-tier audit clients to have (1) lower levels of accrual management, (2) higher levels of real earnings management, and (3) higher levels of investor-perceived accruals quality. In each case, we were unable to reject the null that Big 4 and Mid-tier audits are similar. However, we find Big 4 audit clients to have a lower client-specific ex ante equity risk premium relative to both Mid-tier and other smaller audit firm clients. Collectively, our findings indicate that in situations where a Mid-tier auditor is potentially viable, Big 4 clients could utilize a Mid-tier firm without adversely affecting audit quality. Still, the results suggest that Big 4 clients have a lower ex ante cost of equity capital which is likely related to the insurance considerations (“deep pockets”) – rather than the audit quality -- associated with having a Big 4 auditor.Auditor concentration, Audit quality, Earnings management, Cost of equity capital.

Underfunded Public Employee Pension Plans: Scope of the Problem in the South and Southwest

K.K. Raman is an Associate Professor of Accounting at North Texas State University. Sharon H. Garrison is an Assistant Professor of Finance at North Texas State University

Does Common Ownership Impact Auditor Incentives?

Prior research suggests that common ownership (i.e., institutional investors owning significant equity stakes in companies within the same industry) impairs companies’ incentives to compete since owners are less likely to support an aggressive competitive strategy. In this paper, we examine whether common ownership impacts auditor incentives. Using a sample of US firms during the 2003–2017 period, we find that common ownership lowers audit fees and audit effort without impairing audit quality. We perform cross-sectional tests as well as a quasi-natural experiment based on institutional owner mergers to help mitigate concerns about omitted variable bias or reverse causality. Overall, our findings are consistent with the view that common-owners internalize governance externalities and have accumulated more industry-specific monitoring experience, which in turn decreases audit risk

Editing to Eulerian Graphs

We investigate the problem of modifying a graph into a connected graph in which the degree of each vertex satisfies a prescribed parity constraint. Let ea, ed and vd denote the operations edge addition, edge deletion and vertex deletion respectively. For any S subseteq {ea,ed,vd}, we define Connected Degree Parity Editing (S) (CDPE(S)) to be the problem that takes as input a graph G, an integer k and a function delta: V(G) -> {0,1}, and asks whether G can be modified into a connected graph H with d_H(v) = delta(v)(mod 2) for each v in V(H), using at most k operations from S. We prove that (*) if S={ea} or S={ea,ed}, then CDPE(S) can be solved in polynomial time; (*) if {vd} subseteq S subseteq {ea,ed,vd}, then CDPE(S) is NP-complete and W-hard when parameterized by k, even if delta = 0. Together with known results by Cai and Yang and by Cygan, Marx, Pilipczuk, Pilipczuk and Schlotter, our results completely classify the classical and parameterized complexity of the CDPE(S) problem for all S subseteq {ea,ed,vd}. We obtain the same classification for a natural variant of the cdpe(S) problem on directed graphs, where the target is a weakly connected digraph in which the difference between the in- and out-degree of every vertex equals a prescribed value. As an important implication of our results, we obtain polynomial-time algorithms for Eulerian Editing problem and its directed variant. To the best of our knowledge, the only other natural non-trivial graph class H for which the H-Editing problem is known to be polynomial-time solvable is the class of split graphs

The flip flop nozzle extended to supersonic flows

Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/76293/1/AIAA-1992-2724-750.pd

Atom focusing by far-detuned and resonant standing wave fields: Thin lens regime

The focusing of atoms interacting with both far-detuned and resonant standing wave fields in the thin lens regime is considered. The thin lens approximation is discussed quantitatively from a quantum perspective. Exact quantum expressions for the Fourier components of the density (that include all spherical aberration) are used to study the focusing numerically. The following lens parameters and density profiles are calculated as functions of the pulsed field area $\theta$: the position of the focal plane, peak atomic density, atomic density pattern at the focus, focal spot size, depth of focus, and background density. The lens parameters are compared to asymptotic, analytical results derived from a scalar diffraction theory for which spherical aberration is small but non-negligible ($\theta \gg 1$). Within the diffraction theory analytical expressions show that the focused atoms in the far detuned case have an approximately constant background density $0.5(1-0.635\theta ^{- 1/2})$ while the peak density behaves as $$, the focal distance or time as $\theta ^{-1}(1+1.27\theta ^{- 1/2})$, the focal spot size as $0.744\theta ^{-3/4}$, and the depth of focus as $1.91\theta ^{- 3/2}$. Focusing by the resonant standing wave field leads to a new effect, a Rabi- like oscillation of the atom density. For the far-detuned lens, chromatic aberration is studied with the exact Fourier results. Similarly, the degradation of the focus that results from angular divergence in beams or thermal velocity distributions in traps is studied quantitatively with the exact Fourier method and understood analytically using the asymptotic results. Overall, we show that strong thin lens focusing is possible with modest laser powers and with currently achievable atomic beam characteristics.Comment: 21 pages, 11 figure

SAGE: a hypercard-based GDSS

Proceedings of the Hawaii International Conference on System Science414-22PHIS

Impact of task-medium fit on effectiveness and efficiency in GDSS supported meetings

IFIP Transactions A: Computer Science and TechnologyA-31161-175ITAT