I examine the response of husbands' and wives' earnings to a tax reform in which husbands' and wives' tax rates changed independently, allowing me to examine the effect of both spouses' incentives on each spouse's behavior. I analyze the large Swedish tax reform of 1990–1991 and find that in response to a compensated fall in one spouse's tax rate, each spouse's earnings rise. I compare these re...

Intimate partner violence (IPV) is a serious, widespread problem that negatively affects women's lives, including their economic status. The current study explored whether the financial harm associated with IPV begins as early as adolescence. With longitudinal data from a sample of 498 women currently or formerly receiving welfare, we used latent growth curve modeling to examine the relationshi...

Using detailed data from a unique survey of high school graduates in Germany, we document gender gap expected full-time earnings more than 15%. We decompose this early and find that especially differences coefficients help explain different expectations. In particular, the effects having time for family as career motive being first-generation college student are associated with large penalties ...

We investigate the effects of social and regulatory forces on a firm’s decision to disclose past wrongdoing by voluntarily restating its earnings. With an eight-year sample of more than 2,500 public firms, including 170 voluntary restaters, we find that firms are more likely to voluntarily restate their earnings in response to informal social pressures from other firms in their industry and les...

SYNOPSIS In this study, we propose a reciprocal rent-seeking game between politicians and individual auditors with political connections examine how these auditors' influence their audit quality. Using hand-collected data from China 2008 2013, find that politically connected have significantly lower tendency to issue modified opinions (MAOs). We also politicians' career prospects are adversely ...

This research aims to determine the influence of accounting conservatism, sharia-based social performance disclosure and company size both partially simultaneously against earnings response (earnings coefficient). Empirical study Sub- sector property Real Estate companies registered in ISSI on Indonesia Stock Exchange period 2015-2018. The method used is descriptive verification with quantitati...

Does limited attention among investors affect stock returns? We compare the response to earnings announcements on Friday, when investor inattention is more likely, to the response on other weekdays. If inattention influences stock prices, we should observe less immediate response and more drift for Friday announcements. Indeed, Friday announcements have a 15% lower immediate response and a 70% ...

This paper examines how commonly used earnings quality measures fulfill a key objective of financial reporting, i.e., improving decision usefulness for investors. We propose a stock-price-based measure for assessing the quality of earnings quality measures. We predict that firms with higher earnings quality will be less mispriced than other firms. Mispricing is measured by the difference of the...

Using a large longitudinal data set, we study the effects of increased trade on earnings and mobility in the Swedish labor market in the late 1980s and early 1990s. Earnings respond significantly to changes in industry sales, whether generated by domestic market forces or international trade: Swedish exports (imports) raise (lower) annual earnings, but changes in trade affect earnings just as a...