June, 12–13, 2009 Universität Bern, Unis-building Schanzeneckstrasse 1 CH-3012 Bern switzerland Sixth Accounting Research Workshop Editorial

Dear Participant

Welcome to the Sixth Accounting Research Workshop in Berne.

First of all, we would like to thank all presenters and discussants for allowing us to put a very interesting program together. As in previous years, the quality of the accepted papers is high and we expect many of them to be published in very good journals.

Second, we are particularly happy about the large number of young accounting researchers participating in the workshop. Many of them also took the opportunity to attend the doctoral classes held by Stanley Baiman and John Core during this week. We very much appreciate Stan's and John‘s immediate willingness to teach. We are convinced that thanks to their effort a significant number of doctoral students will come back as presenters or discussants in two years time.

Finally, we would like to note that it is impossible to orga- nize a conference without sponsoring and professional assistance. We therefore gratefully acknowledge financial support by the Swiss National Science Foundation (FNS/SNF) and the tremendous efforts by our institute staff.

We wish you stimulating and fruitful discussions and a pleasant time in Berne.

Robert F. Göx, University of Fribourg Ulf Schiller, University of Berne

ARW 2009 3 Program Room A 027 Parallel Session F1.4 Chair: Igor Goncharov • Jochen Bigus, Lisa Schachner, Ingrid Stein: Relati- onship lending and conservative accounting? Empirical evidence from private firms. Thursday, June 11, 2009 Discussant: Igor Goncharov

19:00 Informal get together for early birds (not included 12:45-14:00 Lunch break in the conference fee) UniS-Building, ground floor Restaurant "Tramdepot", Bern 14:00-15:45 Parallel sessions F2.1 - F2.4 Room A 022 Parallel session F2.1 Chair: Stephen Hansen Friday, June 12, 2009 • Andrew Yim: Cost of capital, hurdle rate, and default probability: A robust model of internal capital markets. 09:00-18:00 Workshop registration Discussant: Jeremy Bertomeu UniS-Building, ground floor, • Sunil Dutta, Stefan Reichelstein: Decentralized capa- Schanzeneckstrasse 1, Bern city and internal pricing. 09:15-09:30 Room A 003 Welcome address Discussant: Stephen Hansen 09:30-10:30 Room A 003 Invited speaker session 1: Room A 027 Parallel session F2.2 Chair: Christian Lukas Professor Stanley Baiman (The Wharton School) • Gerald Feltham, Christian Hofmann: Delegated Embedding more institutional detail into agency models contracting. 10:30-11:00 Coffee break Discussant: Markus Arnold UniS-Building, ground floor • Naomi Rothenberg: The effect of imprecise informa- 11:00-12:45 Parallel sessions F1.1 - F1.4 tion on incentives and team production. Room A -122 Parallel session F1.1 Chair: Georg Schneider Discussant: Christian Lukas • Jeroen Suijs, Jacco Wielhouwer: Proprietary informa- Room A -122 Parallel session F2.3 Chair: Ernst Maug tion in duopoly markets. • Guojin Gong, Laura Yue Li, Jae Yong Shin: Relative Discussant: Silviu Glavan performance evaluation and related peer groups in • Yu Flora Kuang, Jeroen Suijs: Performance targets in executive compensation contracts. incentive compensation. Discussant: Ingolf Dittmann Discussant: George Schneider • Ana Albuquerque, Gus De Franco, Rodrigo Verdi: Room A -126 Parallel session F1.2 Chair: Jörg Budde Peer choice in CEO compensation. • Wendelin Schnedler: Implementation and identifi- Discussant: Ernst Maug cation: When is multi-tasking a problem? Room A -126 Parallel session F2.4 Chair: Daniel Coloumbe Discussant: Richard Saouma • Panos Patatoukas: Customer concentration and • Bjorn Jorgensen, Susan Kulp, Markus Maedler: Cost future stock returns. allocation and performance measure aggregation in a Discussant: Gilad Livne multi-task setting. • Gilad Livne, Ana Simpson, Eli Talmor: Do customer Discussant: Jörg Budde acquisition cost, retention and usage matter to firm Room A 022 Parallel session F1.3 Chair: Panos Patatoukas performance and valuation? • Ramji Balakrishnan, Stephen Hansen, Eva Labro: Evalu- Discussant: Daniel Coloumbe ating heuristics used when designing product costing 15:45-16:15 Coffee break systems UniS-Building, ground floor Discussant: Romana Autrey 16:15-18:00 Parallel sessions F3.1 - F3.3 • Jean Bédard, Daniel Coulombe, Lucie Courteau: An Room A 022 Parallel session F3.1 Chair: Alfred Wagenhofer empirical analysis of the issue and accuracy of manage- • Jeremy Bertomeu, Anne Beyer, Ronald Dye: Capital ment earnings forecasts in IPO prospectuses. structure, cost of capital, and voluntary disclosures. Discussant: Panos Patatoukas Discussant: Miles Gietzmann

4 ARW 2009 ARW 2009 5 • Richard Saouma: Window Dressing and Moral • Daniel Klein, Ernst Maug: How do executives exercise Hazard. stock options? Discussant: Alfred Wagenhofer Discussant: Sasson Bar-Yosef Room A -126 Parallel session F3.2 Chair: Marco Trombetta Room A -126 Parallel session S1.3 Chair: Peter Kroos • Jan Bouwens, Peter Kroos: Managerial horizon and • Igor Goncharov: Does reporting timeliness affect book- the choice for insiders versus outsiders: Evidence from tax differences? compensation structures of CEO successors. Discussant: Anne D'Arcy Discussant: Elizabeth Demers • Gopal Krishnan, Lixin (Nancy) Su, Gnanakumar • Elizabeth Demers, Chong Wang: The impact of Visvanathan: Does accounting and financial expertise in career concerns on accruals based and real earnings the C-suite aid or mitigate earnings management? management. Discussant: Peter Kroos Discussant: Marco Trombetta Room A -122 Parallel session F3.3 Chair: Alexis Kunz 12:15-13:15 Lunch break • Stephanie Dehning Grimm: The role of accounting UniS-Building, ground floor quality in securities class action lawsuits. Discussant: Holger Daske 13:15-15:00 Parallel sessions S2.1 - S2.3 • Stephen Hansen: Big four auditor selection: The influ- Room A 022 Parallel session S2.1 Chair: Robert Göx ence of client characteristics and auditor specialization. • Jack Stecher, Gorm Gronnevet: Credit markets, board Discussant: Alexis Kunz size, and board composition. Discussant: Stefan Wielenberg 19:00 Conference Dinner • Volker Laux, Brian Mittendorf: Board independence, Restaurant "Gurten Kulm, BelEtage", Gurten executive pay, and the adoption of pet projects. Discussant: Robert Göx Room A -122 Parallel session S2.2 Chair: Jochen Bigus • Peter Fiechter: Application of the fair value option Saturday, June 13, 2009 under IAS 39: Effects on the volatility of bank earnings. Discussant: Martin Wallmeier 09:00-10:00 Room A 003 Invited speaker session 2: • Yu Flora Kuang, Bo Qin: Credit rating and CEO risk- Professor John Core (The Wharton School) taking incentives. Are US CEOs paid more than UK CEOs? Inferences from Discussant: Jochen Bigus risk-adjusted pay Room A -126 Parallel session S2.3 Chair: Nils Crasselt 10:00-10:30 Coffee break • Nina Günther, Bernhard Gegenfurtner, Ann-Kristin UniS-Building, ground floor Achleitner, Christoph Kaserer: Drivers of earnings quality 10:30-12:15 Parallel sessions S1.1 - S1.3 in a bank-based economy: Evidence from voluntary vs. Room A -122 Parallel session S1.1 Chair: Andrew Stark mandatory IFRS adoption in Germany. • Romana Autrey, Francesco Bova: Gray markets and Discussant: Philipp Schorn multinational transfer pricing. • Thomas Günther, Frank Schiemann: Accuracy of a Discussant: Thomas Pfeiffer firm valuation model containing human capital related • Nicole Bastian Johnson, Thomas Pfeiffer, Georg expenses and value added. Schneider: Cost allocation for capital budgeting deci- Discussant: Nils Crasselt sions under sequential private information. Discussant: Andrew Stark 15.00 End of workshop Room A 022 Parallel session S1.2 Chair: Sasson Bar-Yosef • Ingolf Dittmann, Ko-Chia Yu: How important are risk- taking incentives in executive compensation? Evidence from model calibrations for U.S. CEOs. Discussant: Robert Gillenkirch

6 ARW 2009 ARW 2009 7 Map

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8 ARW 2009 ARW 2009 9 Travelling Participants

Albuquerque Ana Budde Jörg Boston University University of Bonn University UniS (1) Schanzeneckstrasse 1 595 Commmonwealth Ave Adenauerallee 24-42 Boston, MA 2215, USA 53113 Bonn, Germany Email: [email protected] Email: [email protected] By train: Autrey Romana Leave the train at Berne main station (2) and look for Core John Harvard Business School The Wharton School elevators near track 13 (sign Länggasse/Universität). Soldiers Field 1300 Steinberg-Dietrich Hall Move to the 4th floor. On the top level (4th floor, Boston, MA 2163, USA Philadelphia, PA 19104, USA Email: [email protected] Email: [email protected] university) pass the main building of the university (3),

Baiman Stanley then turn left (to the west). You should already see the Coulombe Daniel The Wharton School Université Laval white UniS (1) building (about 100 meters, one block). 1300 Steinberg-Dietrich Hall 2325 rue de la Terasse Philadelphia, PA 19104, USA Email: [email protected] G1V 0A6 Québec, Canada By car: Email: [email protected] Leave the freeway at Bern-Neufeld and follow the sign Barmettler Peter Crasselt Nils "Zentrum“ (city-center) or "Bahnhof“ (main station University of Zurich Plattenstrasse14 Bergische Universität Wuppertal (2)). The parking "Bahnhof“ (main station parking) is 8032 Zürich, Switzerland Gaußstrasse 20 signed after one mile. Park and take the elevator to the Email: [email protected] 44119 Wuppertal, Germany Email: [email protected] 4th floor. Pass the main building of the university (3), Bar-Yosef Sasson then turn left (to the west). You should already see the The Hebrew University of Jerusalem D'Arcy Anne via Roentgen, 1 University of Lausanne / HEC white UniS (1) building (about 100 meters, one block). 20136 Milano, Italy Internef 511 3 Email: [email protected] 1015 Lausanne, Switzerland Restaurant Email: [email protected] Berchtold Demian Altes Tramdepot (4) Grosser Muristalden 6 Universität Bern Daske Holger Informal get together for early birds on Thursday. Institut für Finanzmanagement Universität Mannheim Engehaldenstrasse 4 Schloss Ostflügel, Raum O 265 3012 Bern, Switzerland 68131 Mannheim, Germany Restaurant Email: [email protected] Email: [email protected] Gurten Kulm, Bel Etage Gurten-Park im Grünen, Gurten Kulm, Wabern Beyer Anne de Vegt Marcel (Take tram no. 9 from the main station (2) in the direc- Stanford University Universität Bern tion of "Wabern" and get off at "Gurtenbahn").Optio 516 Memorial Way Institute of Accounting Stanford, CA 94305, USA nal dinner on Friday. Engehaldenstrasse 4 Email: [email protected] 3012 Bern, Switzerland Email: [email protected] 6 Hotel Ador (5) Laupenstrasse 15 Phone: +41 (0)31 388 0110 Bigus Jochen Universität Bern Demers Elizabeth Institute of Accounting INSEAD Engehaldenstrasse 4 7 Hotel Bern (6) Zeughausgasse 9 Phone: +41 (0)31 329 2222 Boulevard de Constance 3012 Bern, Switzerland 77305 Fontainebleau Cedex, France Email: [email protected] 8 Hotel City (7) Bahnhofplatz Phone: +41 (0)31 311 5377 Email: [email protected] Böckem Sabine Universität Bern Deuschinger Lena 9 Check www.berne.ch for further information about Institute for Organization (IOP) Technische Universität München Arcisstrasse 21 accommodations, gastronomy, sightseeing etc. Engehaldenstrasse 4 3012 Bern, Switzerland 80333 München, Germany Email: [email protected] Email: [email protected]

Bosch Patrick Dicken Jeff University of Fribourg University of Fribourg Bd de Pérolles 90 Bd de Pérolles 90 1700 Fribourg, Switzerland 1700 Fribourg, Switzerland Email: [email protected] Email: [email protected]

10 ARW 2009 ARW 2009 11 Dittmann Ingolf Günther Nina Kunz Alexis Patatoukas Panos Erasmus University Rotterdam Technische Universität München University of Lausanne Yale University Burg. Oudlaan 50 Arcisstrasse 21 Internef 523 9 Trumbull 3000 DR Rotterdam, The Netherlands 8033 München, Germany 1015 Lausanne, Switzerland New Haven, 6511 CT, USA Email: [email protected] Email: [email protected] Email: [email protected] Email: [email protected] Dutta Sunil Labro Eva Hammer Carola Pelger Christoph University of California, Berkeley Technische Universität München London School of Economics University of Cologne Haas School of Business Arcisstrasse 21 Houghton Street Albertus-Magnus-Platz Berkeley, CA 94598, USA 80333 Munich, Germany WC2A 2AE London, UK Email: [email protected] Email: [email protected] Email: [email protected] 50923 Cologne, Germany Email: [email protected] Engelberger Raphael Hansen Stephen Laux Volker Universität Bern The George Washington University University of Texas at Austin Pfeiffer Thomas Institute of Accounting 2201 G St NW, Ste 601P One University Station B6400 Universität Wien Engehaldenstrasse 4 Washington, DC 20052, USA Austin, TX 78712, USA Brünnerstrasse 72 3012 Bern, Switzerland Email: [email protected] Email: [email protected] 1210 Wien, Austria Email: [email protected] Email: [email protected] Hammermann Andrea Livne Gilad Fiechter Peter RWTH Aachen Cass Business School Qin Bo University of Zurich Elsasstrasse 15 106 Bunhill Row Plattenstrasse 14 52064 Aachen, Germany EC1Y 8TZ London, UK University of Groningen 8005 Zürich, Switzerland Email: [email protected] Email: [email protected] Nettelbosje 2 Email: [email protected] 9747 AE Gronongen, The Netherlands Hecker Renate Löffler Clemens Email: [email protected] Frantz Pascal Eberhard Karls University Tübingen E-Control The London School of Economics Nauklerstrasse 47 Rudolfsplatz 13a Rothenberg Naomi 36A Evelyn Gardens 72074 Tübingen, Germany 1010 Vienna, Austria DePauw University WC2A 2AE, London, UK Email: [email protected] Email: [email protected] 828 Gardenside Dr. Email: [email protected] Greencastle, IN 46135, USA Lukas Christian Heidigen Jan-Gerrit Email: [email protected] Gal Bar-Sheva Leibniz Universität Hannover University Constance BAR-ILAN University Königsworther Platz 1 Universitätsstrasse 10 Yefe Nof 3. POB 726 30167 Hannover, Germany Fach 78457 Konstanz, Germany Saouma Richard 44856 Kedumim, Israel Email: [email protected] Email: [email protected] UCLA Anderson School of Management Email: [email protected] 110 Westwood Plaza Hofmann Christian Maedler Markus Los Angeles, CA 90095-1481, USA Glavan Silviu University of Mannheim IESE Business School Email: [email protected] Universidad Carlos III Madrid Schloss Avenida Pearson,21 Calle Madrid 126 68131 Mannheim, Germany 8034 Barcelona, Spain Schachner Lisa 28903 Getafe (Madrid), Spain Email: [email protected] Email: [email protected] Universität Bern Email: [email protected] Institute of Accounting Keimer Imke Malär Lorenz Engehaldenstrasse 4 Goncharov Igor Universität Bern Universität Bern 3012 Bern, Switzerland University of Amsterdam Business School Institute of Accounting Institute of Accounting Email: [email protected] Roetersstraat 11 Engehaldenstr. 4 Engehaldenstrasse 4 1094GJ Amsterdam, The Netherlands 3012 Bern, Switzerland 3012 Bern, Switzerland Email: [email protected] Email: [email protected] Email: [email protected] Schiemann Frank TU Dresden Göx Robert Krishnan Gopal Maug Ernst Mommsenstrasse 13 University of Fribourg Lenigh University Universität Mannheim 1062 Dresden, Germany Bd de Pérolles 90 621 Taylor Street Schloss Email: [email protected] 1700 Fribourg, Switzerland Betlehem, PA 18015, Israel 68131 Mannheim, Germany Email: [email protected] Email: [email protected] Email: [email protected] Schiller Ulf Universität Bern Grimm Stephanie Kroos Peter Menini Andrea Institute of Accounting University of St.Thomas Vrije Universiteit Amsterdam Università di Padova Engehaldenstrasse 4 4952 Russell Ave. S. De Boelelaan 1105 Via Del Santo, 33 3012 Bern, Switzerland Minneapolis, 55410 MN, USA 1081 HV Amsterdam, The Netherlands 35123 Padova, Italy Email: [email protected] Email: [email protected] Email: [email protected] Email: [email protected]

Guenther Thomas Kuag Yu Flora Pallas Sabine Schin Jae Yong Technische Universität Dresden Vrije Universiteit Amsterdam Technische Universität München University of Illinois at Urbana-Champaign Mommsenstrasse10 De Boelelaan 1105 Arcisstrasse 21 4003 BIF, 515 East Gregory Dr. 1062 Dresden, Germany 1081 HV Amsterdam, The Netherlands 80333 München, Germany Champaign, IL 61820, USA Email: [email protected] Email: [email protected] Email: [email protected] Email: [email protected]

12 ARW 2009 ARW 2009 13 Schnedler Wendelin Wang Chong Manncheim University Naval Postgraduate School L7 3-5 555 Dyer Rd 68131 Mannheim, Germany Monterey, CA 93943, USA Email: [email protected] Email: [email protected]

Schneider Georg Weisskopf Jean-Philippe Universität Paderborn Université de Fribourg Warburgerstrasse 42 Boulevard de Perolles 90 33098 Paderborn, Germany 1700 Fribourg, Switzerland Email: [email protected] Email: [email protected]

Schorn Philipp Wielhouwer Jacco Universität Bern Vrije Universität Amsterdam Institute of Accounting De Boelelaan 1105 Engehaldenstrasse 4 1081 HV Amsterdam, The Netherlands 3012 Bern, Switzerland Email: [email protected] Email: [email protected] Xu Moqi Senn Markus INSEAD Universität Bern Boulevard de constance Institut für Finanzmanagement 77305 Fontainebleau, France Engehaldenstrasse 4 Email: [email protected] INSEAD 3012 Bern, Switzerland Email: [email protected] Yim Andrew Stark Andrew Tilburg University Manchester Business School K823, Warandelaan 2 Booth St West 5037 AB Tilburg, Deutschland Manchester, M15 6PB, USA Email: [email protected] Email: [email protected] Zeller Jonas Stecher Jack Universität Bern Carnegie Mellon University Institut für Finanzmanagement 5000 Forbes Avenue Engehaldenstrasse 4 Pittsburgh, PA 15213 3012 Bern, Switzerland Email: [email protected] Email: [email protected]

Trombetta Marco Zhang Dan Fundacion Instituto de Empresa Erasmus University CIF G81711459, Calle Maria de Hoofdweg 184b 28006 Madrid, Spain 3067GJ Rotterdam, The Netherlands Email: [email protected] Email: [email protected]

Wagenhofer Alfred Zöller Martin University of Graz University of Fribourg Universitätstrasse 15 Bd. de Pérolles 90 A-8010 Graz, Austria 1700 Fribourg, Switzerland Email: [email protected] Email: [email protected]

Sixth Accounting Research Workshop www.arw-suisse.ch

Hotline during the workshop: Beatrice Pidoux: +41 (0)31 631 3761

The Sixth Accounting Research Workshop is jointly organized by the Universities of Berne and Fribourg (Switzerland).

© 2009 University of Berne

14 ARW 2009