Browsing by Author "Williams, Jan L."
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Item Has Regulation Changed the Market's Reward for Meeting Or Beating Expectations?(Nova Publishers, 2006-08) Williams, Jan L.; Dadalt, Peter J.; Sun, Huey-Lian; Yaari, VardaA firm meets or beats expectations when it reports earnings that are at or above the consensus analysts' forecast. We argue that two types of firms MBE: strong firms who commit to future performance and signal future earnings by MBE, and weak firms who attempt to mimic strong firms by managing either expectations or earnings. Using a sample of 4,152 earnings announcements for firms that habitually MBE between 1999 and 2004, we find that the incidence of expectations (earnings) management decreased following the enactment of Regulation FD (Sarbanes Oxley). In addition, we find that the market reactions to MBE achieved through managing expectations declined significantly following the enactment of Regulation FD, but not to MBE achieved by managing earnings following the enactment of the Sarbanes-Oxley Act.Item Long-Run Stock Returns and Abnormal Accruals of Private Issuers: Are They Different from Public Issuers?(2014) Tang, Alex P.; Williams, Jan L.This study examines long-run stock returns and abnormal accruals of private placements of common stock, convertible debt and straight debt. We investigate patterns surrounding private placements and compare results to predictions of competing hypotheses. The long-term abnormal return for common stock is significantly positive in the year before the private placement but significantly negative in post periods. The abnormal return is significantly negative for convertible debt in the year following the private placement. Our results are more consistent with the last-resort financing hypothesis rather than the overvaluation hypothesis, which is often used to explain the performance of public issuers.Item Long-Run Stock Returns and Abnormal Accruals of Private Issuers: Are They Different from Public Issuers?(Journal of Accounting & Finance, 2015) Williams, Jan L.; Tang, Alex P.This study simultaneously examines long-run stock returns and abnormal accruals of private placements of common stock, convertible debt and straight debt. We investigate patterns surrounding private placements and compare our results to predictions of competing hypotheses. We find that the long-term abnormal return for common stock is significantly positive in the year immediately before the private placement but significantly negative in the post periods. The abnormal return is significantly negative for convertible debt in the year immediately following the private placement. Our results are more consistent with the last-resort financing hypothesis rather than the overvaluation hypothesis, which is often used to explain the performance of public issuers.Item Societal Trust and the Economic Behavior of Nonprofit Organizations(Advances in Accounting, 2017) Felix, Robert; Gaynor, Greg; Pevzner, Mikhail; Williams, Jan L.This study explores the impact of societal trust on the economic behavior of nonprofit organizations. Although prior studies reveal that trust has a positive impact on the economic behavior of for-profit firms, the institutional differences between the two organization types make it unclear whether trust plays a similar role in nonprofits. Our results show that nonprofits operating in higher trust areas are more likely to overspend on administrative expenses. This positive relationship between trust and overspending is primarily driven by service organizations, as opposed to public charities. Moreover, within service organizations, we find that the positive trust-administrative overspending association is most prevalent in situations of weaker monitoring or governance. Additional tests show trust has a similar impact on excess compensation and abnormal accruals in service organizations. Overall, our findings suggest that trust may provide opportunities for nonprofit managers, particularly in service-oriented organizations, to engage in opportunistic behavior that may be exacerbated by weaker forms of oversight.Item Today’s CPA To Defer or Not to Defer: Considering Your Spouse in Planning Social Security Benefits(Today's CPA, 2015-01) Korb, Phillip J.; Williams, Jan L.; Gershman, Steven A.An arduous decision facing persons considering retirement is when to start collecting Social Security benefits. In planning to maximize Social Security benefits, oftentimes the right decision comes down to whether you will outlive your life expectancy. People can elect to start collecting Social Security benefits as early as age 62, wait until full retirement at age 66, or defer the election until age 70. The longer one waits to start collecting Social Security benefits, the greater the monthly benefits. Those who start collecting benefits at age 62 will receive a 25 percent reduction in benefits, while those who wait until after age 66 will receive 100 percent of their benefits. Those who wait an additional four years will receive 132 percent of their benefits (an 8 percent increase of benefits each year they defer the election up to age 70). Most tax planning software, including the Social Security online calculator, is based on a recipient’s own benefits. However, the impact of one’s spousal benefits, which is often overlooked, can be an integral component of this decision. Consider the following cases, one that includes just the Social Security benefit recipient, one that includes the Social Security benefit recipient and spouse, and another that includes claiming spousal benefits under the file-and-suspend strategy.