讲座人：ELAINE YING WANG
讲座主题：The Effect of Increased Audit Disclosure on Managerial Decision Making: Evidence from Disclosing Critical Audit Matters
摘要：The Public Company Accounting Oversight Board (PCAOB) recently issued a standard that requires auditors to provide information on “critical audit matters” (CAMs) identified during the financial statement audit. While regulators intend to add value to audit reports by asking auditors to disclose more information, it is unknown whether and how increased auditor disclosure will alter managers’ decision making. We conduct three experiments in two different decision settings (whether to use derivatives or issue a new loan program) and test how a CAM disclosure requirement changes managers’ decisions based on the risk implications of the decision. In our main experiment with derivatives, we find that a CAM disclosure increases managers’ willingness to speculate (a risk-increasing transaction), but decreases managers’ willingness to hedge (a risk-decreasing transaction). Consistently, in supplemental experiments with auto loans, we find that CAM disclosures make managers more likely to issue risk-increasing loans, but less likely to issue risk-decreasing loans. Taken together, our results suggest that CAM disclosures elicit strategic managerial responses in such a way that may encourage risk-increasing activities and reduce risk-decreasing activities.
讲座人简介：Associate professor Elaine Ying Wang is an auditing scholar in Isenberg School of Management, The University of Manchester. Her primarily interested in the judgment and decision-making of individuals in financial reporting and auditing settings. Areas of interest include the effects of linguistic features on investors’ judgments; the unintended consequences of financial reporting and auditing practices on managers’ operational decisions; and the effects of situational factors on auditors’ judgments of uncertain estimates. She has published extensively in leading international journals such as the Accounting Review, Journal of Accounting Research. She also has many papers in Contemporary Accounting Research, Journal of Accounting and Economics etc. which is under review. She has gained so many awards and grants in research such as Faculty Research Grant/Healy Endowment Grant, University of Massachusetts Amherst Exceptional Merit Award, Isenberg School of Management College Research Excellence Award, Isenberg School of Management College Outstanding Researcher Award, Center for Audit Quality Grant, Isenberg School of Management Summer Research Stipends. She is invited to present papers in many international accounting conferences like Telfer Accounting and Finance Conference.