This article seeks to analyze the allocation of federal government discretionary spending among Brazil’s states. In Brazil, the bulk of federal public budget must be compulsorily executed. Personnel expenditures and social taxes, social security benefits and a series of constitutionally mandatory transfers to states and municipalities are examples of expenditures over which the government has n...

This study investigates the influence of ownership structure and board characteristics on discretionary accruals and real earnings management using the data of A-shares in Chinese Shanghai and Shenzhen Stock Exchange Securities Market from 2002 to 2012. The empirical results show that institutions with high shareholding proportion or great shareholding concentration give managers incentives to ...

Discretionary Latitude and Relational Contracting We use economic experiments to examine the nature of relational trading under a menu of incomplete contracts ranging from the repeat purchase mechanism of Klein and Leffler (1981) to highly incomplete contracts that are completely unenforceable by third-parties. Our results suggest that, with barriers to complete contracting, increasing the degr...

in iran, more than 96.4 percent of dairy farms (including more than 68.7 percent of cattle and calf) have a less than 20 heads of animals, and they produce more than two-thirds of milk and most of animal protein. also, large shares of water, land and labor force resources are used by this production section. less scientific studies have been focused on this production system despite it's m...

Advertising is a critical competitive tool that shapes interactions among firms in the product market. Using third-party tracked data on advertising outlet costs, I find nontrivial portion of public firms, even those with intense activities, do not disclose expenses their financial statements, indicating significant disclosure discretion. further use category-level to develop firm-specific meas...

We introduce a class of models, called newsvendor networks, that allow for multiple products and multiple processing and storage points and investigate how their single-period properties extend to dynamic settings. Such models provide a parsimonious framework to study various problems of stochastic capacity investment and inventory procurement. Newsvendor networks can feature commonality, ßexib...

SYNOPSIS: Earnings management remains a popular topic of debate and discussion among investors, regulators, analysts, and the public. One mechanism that might mitigate earnings management is auditors’ industry expertise. Using a large sample of clients of Big 6 auditors, this research examines the association between auditor industry expertise, measured in terms of both auditor market share in ...