We examine how firms respond to the Covid-19 pandemic by adjusting their management controls and what consequences are in terms of firms' resilience crisis. review literature that deals with influence on business investigate results from a survey conducted within large international multi-divisional service firm German Business Panel. find evidence consistent claim is associated shock transparency increased incentive problems. document adjustments response crisis: Action stronger, result...

Abstract The Covid-19 pandemic and the corresponding shift toward working from home (WFH) amplifies control problems within organizations poses severe challenges for management as employees’ tasks are difficult to observe under WFH conditions. We examine association between action controls. Based on a survey among employees in large international corporation, we find that conditions organization more intensively uses standardization planning participation. also employee outcomes. findings...

Abstract The literature provides evidence on the separate roles of injunctive and descriptive norms in explaining corporate financial reporting, ignoring that are likely endogenous partly explained by norms. We jointly analyze direct indirect effects religious social (an norm) via local crime rates (a reporting quality. find relate negatively to earnings management tax avoidance. also show this association is partially firm’s geographical environment, underlining relation between Overall,...

ABSTRACT We explore how a supervisor's hierarchical rank affects the extent to which employees’ targets reflect their past performance. Literature documents that supervisors do not fully ratchet for performance, arguably because commitment penalize successful employees with more difficult alleviates severity of effect. argue is less credible in organizational hierarchies where middle manager sets targets. Using data from an organization comprised three layers, we consistently find manager's...

The Covid-19 pandemic and the corresponding shift towards working from home (WFH) amplifies control problems within organizations poses severe challenges for management control. We examine how physically distant environment caused by WFH influences design of action controls. Based on a survey among employees in large international corporation, we find that under conditions organization more intensively uses standardization planning participation grants broader autonomy to employees. also...

This study examines if geographical variation in the dominant religion of a firm's location is associated with corporate ownership structures as governance mechanism to address agency conflicts within firms. We contrast two Christian faiths, Protestantism and Catholicism, which—despite theological similarities—have been contrasting preferences for autonomy reliance on trust. identification challenges by combining evidence from panel regressions, regression discontinuity design, instrumental...

We study whether and how financial analysts choose tone during earnings conference calls as a means to acquire information from the firm’s management. Analyzing 32,963 analyst-manager interactions of S&P 500 firms, we document that analyst questions are characterized either by higher absolute level tone, negative phrasing, or both, associated with more concrete, clearer, accurate management answers. further analysts’ question phrasing is function firms’ risk exposure. Overall, find in their...

Download This Paper Open PDF in Browser Add to My Library Share: Permalink Using these links will ensure access this page indefinitely Copy URL DOI

We study whether and how financial analysts choose tone during earnings conference calls as a means to acquire information from the firm’s management. Analyzing 32,963 analyst-managerinteractions of S&P 500 firms, we document that analyst questions are characterized either by higher absolute level tone, negative phrasing, or both, associated with more concrete, clearer, accurate management answers. further analysts’ question phrasing is function firms’ risk exposure. Overall, find in their...

We study how the past performance of a supervisor (a middle manager in hierarchical organization) affects extent to which she uses agents' when setting targets. argue that infers from her own achievements whether sets appropriate targets for agents. expect more strongly incorporate their missed target previous period. Using data an organization comprised three layers period 2011 2016, we find evidence our predictions. show supervisors use information on individual and peer have Specifically,...

We analyze how engagement lead partners staff audits with types of internal control deficiencies (ICD). Previous literature suggests that audit teams react to the discovery ICDs by increasing effort in order keep quality constant. However, is a multifaceted construct due heterogeneity auditor characteristics within an team. argue hours worked expert personnel, such as high-ranking auditors and specialists, represent scarce resource for firm. In setting, are likely use this when encounter...

We investigate whether conservatism as a personality trait, measured by managers’ signatures, influences forecasting style. Building on upper echelons theory and psychology literature, we predict that conservative traits such the resistance to change ensuing cautiousness in updating beliefs influence forecasts. Our findings suggest CFOs more likely select earnings compared revenues main KPI of forecast, keep same across years, issue specific Finally, provide some evidence accurate Overall,...

This study examines the role of religion in explaining corporate labor decisions. In particular, we investigate how firms religious communities respond to demand changes terms investment. Based on data from German private firms, find that managers located these less sensitively economic upturns and more downturns investment, decreasing generally observed investment stickiness. We also areas are characterized by a higher workforce stability. Further analyses suggest this pattern can be...

The literature provides evidence on the separate roles of injunctive and descriptive norms in explaining corporate financial reporting, ignoring that are likely endogenous partly explained by norms. We jointly analyze direct indirect effects religious social (an norm) via local crime rates (a reporting quality. find relate negatively to earnings management tax avoidance. also show this association is partially firm’s geographical environment, underlining relation between Overall, study...

We examine how firms respond to the COVID-19 pandemic by adjusting their management controls and what consequences are in terms of firms’ resilience crisis. broadly review literature that deals with influence on business investigate results from a survey conducted within large international multi-divisional service firm German Business Panel. find evidence consistent claim Covid-19 is associated shock transparency increased incentive problems. document adjustments response crisis: Action...

Die COVID-19-Pandemie und die damit verbundene Verlagerung der Arbeit in das Homeoffice, zwingen Unternehmen dazu, ihre Steuerungssysteme anzupassen. Dieser Beitrag identifiziert kategorisiert auf Basis von semi-strukturierten Experteninterviews Veränderungen innerhalb Konsequenzen Veränderung Mitarbeiterebene. Während Effizienz- Produktivitätsgewinne erzielt werden können, stellen Erhalt Innovationsfähigkeit, kreativen Lösungsansätzen einer effizienten Zusammenarbeit Herausforderungen dar.

We examine whether financial analysts’ questions during earnings conference calls can help auditors assess the quality of firms’ internal control over reporting. argue that expertise on firm external factors complements auditors’ private knowledge factors. Using a large sample quarterly listed U.S. firms from 2010 to 2018, we use topic modeling approach capture thematic content and manager answers. find resulting model score significantly predicts material weaknesses beyond determinants...