Director Appointments

Using 9,801 director appointments during 2003-2014, we document the dramatic impact of connections - 69% of new directors have professional tiesImage of Tu Nguyen to incumbent boards, a group representing 13% of all potential candidates. Consistent with facilitating coordination and reducing search costs, connections help boards bring in new skills and diversity. More complex firms and firms in more competitive environments tend to appoint connected directors, experience better market reactions and higher shareholder votes. Connections to incumbent CEOs, however, result in lower announcement returns and shareholder votes. Educational or social ties have little effect. We use death (merger)-induced network loss (gain) as instruments.

 Does the tax deductibility of interest affect financial reporting and investments?

Many countries have imposed tax policies that limit the deductibility of interest costs, creating a plausibly exogenous increase in the net cost of Image of Kaishu Wuborrowing. The limits are based on financial accounting numbers, adding a new implication to managers’ choices. Firms in these countries are also expected to rely less on debt financing and face weaker demand for conservative financial reporting from creditors as compared to firms in other countries. Tests employ a large sample of U.S. firms around the implementation of interest limits under the Tax Cuts and Jobs Act, and a second set of firms in OECD countries from 1985 to 2013 subjected to similar limitations. Exploiting these two settings and difference-in-differences research designs, we provide evidence that the adoption of these tax deductibility limits reduces conditional conservatism of firms’ financial reporting. Overall, our findings suggest that the tax rules affecting the deductibility of interest have important impacts on corporate financial reporting. Such changes can have unintended consequences for other decisions of interest to tax policy makers, such as investment choices documented by others. 

I Know Something You Don't Know: The Effect of Relative Performance Information and Individual Performance Incentives on Knoledge Sharing

When employees share knowledge with their colleagues, the efficiency of the colleagues' performance improves, which positively affects their Image of Krista Fiolleauproductivity. However, employees can engage in counterproductive behavior by choosing not to share knowledge (passive behavior) or by choosing to share inaccurate knowledge with their colleagues (active behavior).

Needs Versus Wants: Which Motivates More Effort

Image of Adam PressleeA significant and increasing number of North American organizations use tangible rewards to motivate their employees. Despite the widespread use of tangible rewards, there is limited understanding as to what makes them effective. Our study has two related purposes.

The False Promise of ESG

Millions of investors and countless fund managers direct their investments to companies that are highly-rated on the basis of their environmental, Image of Elizabeth Demerssocial, and governance (“ESG”) activities in an attempt to do good. The claim by ESG advocates, pundits, and many academics that highly-rated ESG companies and funds also deliver superior returns bolsters this move: Doing better by doing good. The best of all worlds.

Celebrating alumni achievements on International Women's Day

The theme for this year’s International Women’s Day is #BreakTheBias, calling people to imagine a gender-equal world free of stereotypes, bias and Image of Winnie Shi and Christine Wiedmandiscrimination. This is also a day to recognize and celebrate the social, economic, cultural and political achievements of women.

Upskilling to remain competitive

Globalization, digitization and automation are accelerating workforce transformations in every industry.Image of Nancy Vanden Bosch

Corporate taxes can be good for shareholders

Professor Andy Bauer's research explores shareholder credits and maximizing cash flowImage of Andrew Bauer

How cryptocurrency and government relief packages could impact your tax returns

Andrew Bauer,University of Waterloo associate professor and Canada Research Chair in Taxation Government and Risk, says the deadline for certain interest charges in relation to relief packages has also been extended for some.Image of Andrew Bauer

I know something you don’t know: The effect of relative performance information and the individual performance incentives on knowledge sharing

Expands our understanding of counterproductive effects of knowledge sharing within a workplace that implements incentive systems and performance enhancing tools.Image of Krista Fiolleau

Language and Domain Specificity: A Chinese Financial Sentiment DictionaryImage of Alan Huang

Our dictionary maps semantically similar words to a subset of human-expert generated financial sentiment words.

Merging law and ethics with the accounting profession Prof. Sally Gunz

Professor Emerita, Sally Gunz (MA, LLB Sydney, MBA Manchester), announced as an Honorary Member of the University

Monetization of digital content: Drivers of revenue on Q and A platforms

Social Media revenue opportunities can mean profits for the platform, content providers, and content users.an image of a hand holding a phone<--break->

SAF professors elected co-presidents of Northern Finance AssociationBlake PhillipsJames Thompson

Two finance professors, Blake Phillips and James Thompson, from the School of Accounting and Finance at the University of Waterloo, have been elected co-presidents of the Northern Finance Association (NFA). <--break->

9 Budgeting tips for university students  four students

To help first-year students avoid these hurdles, we’ve asked university staff, students and finance experts to share their top budgeting tips for saving during the school year.<--break->

Q and A with experts: Optimizing your retirement savings; Professor Ken Vetzaltwo people looking at the laptop

Researchers provides insights into how pension holders can manage their investments to improve the odds that their retirement savings will last. <--break->

Celebrating 25 years of tax research impact

As the Tax Centre enters its 25th year, Ken Klassen (MAcc ’89), Director of the Tax Centre and professor with the Prof. Ken KlassenSchool of Accounting and Finance (SAF), sits down for a conversation about the Tax Centre's accomplishments and the influence that it has had on the accounting profession and the SAF curriculum.<--break->

Ken Klassen awarded the 2021 Haim Falk Award for distinguished contribution to accounting thought Prof. Ken Klassen

The CAAA Award Committees are pleased to recognize the recipients who embody the values and mission of the Association: innovators who are committed to promoting and encouraging excellence in education and research in our field.<--break->

andrew bauerQ and A with the experts: Filing your taxes after a year of COVID

Professor Andrew Bauer of the School of Accounting and Finance examines some of the things to consider when filing your taxes this year.

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Photo of Tony WirjantoQ and A with the experts: COVID-19 and the insurance industry

Tony Wirjanto, a curator for Insurance and Asset Management for the World Economic Forum and professor at the School of Accounting and Finance, takes us through how COVID-19 has affected the insurance industry, and what can be done about it 

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Assessing the CRA    Photo of Ken Klassen

Ken Klassen and Nick Pantaleo's research paper: Assessing the Canada Revenue Agency: Evidence on Tax Auditors’ Incentives and Assessments

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Photo of Elizabeth DemersESG factors and market crash

RESEARCH PAPER: ESG didn’t immunize stocks against the COVID-19 market crash.

<--break->Are Bounty Whistleblower Programs Effective?Photo of Christine Weidman 

Whistleblowers play an important role in the detection and deterrence of corporate fraud. 

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Which is More Motivating, Cash Rewards or Gift Card Rewards? Photo of Adam PressleePhoto of Alan Webb

Gift card rewards may be an effective means of sustaining the motivation of weaker performers to work hard – a problem of particular importance when employees compete against one another for rewards.

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Necessary Evil or Valued Team Member? Photo of Tim Bauer

Relationships matter when auditors and IT specialists work together but they don’t always see their relationship the same way, or in a good way. 

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Analyst's Residing Country and Research Report BiasPhoto of Alan Huang

When reading an analyst’s report, pay special attention to where the analyst is from, not which brokerage the analyst is affiliated with or where the firm that is covered is headquartered.

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Wait, what? Shareholders Prefer their Corporations to Pay Taxes?  Photo of Andrew Bauer

They do when incentives like shareholder credits for corporate taxes paid exist.

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The association between director overcompensation and related party transactions prone to insider opportunismPhoto of Ross LuPhoto of Sasan Saiy

This study provides empirical evidence on the association between independent directors’ compensation and related party transactions suggesting that overcompensating directors has an adverse effect on their independence and the effectiveness of board monitoring.

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Does Board Expertise Always Enhance Firm Performance?Photo of Jie Joyce Tian

Policy makers and regulators generally believe firms should enlist directors with more expertise. 

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Unrecognized Asset Values affect the Relation between Equity Returns and Debt Valuation AdjustmentPhoto of Chanling Chen

When a firm suffers from a credit downgrade, will it be possible for the firm to record a large unrealized gain in its income?

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Does corporate income tax avoidance require risk-taking?Photo of Kaishu Wu

Do firms first exhaust relatively “safe” tax planning strategies before turning to “risky” strategies, as they pursue more tax savings?

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Market Pricing of Accruals Quality and Accounting‐Based AnomaliesPhoto of Daniel Jiang

RESEARCH PAPER: Connections between the Market Pricing of Accruals Quality and Accounting-Based Anomalies

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Unintended consequences of material weakness reportingPhoto of Tim Bauer

RESEARCH PAPER: The Unintended Consequences of Material Weakness Reporting on Auditors’ Acceptance of Aggressive Client Reporting

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Audit plans and fraud riskPhoto of Brad PomeroyPhoto of Tim Bauer

RESEARCH PAPER: Revising Audit Plans to Address Fraud Risk: A Case of ‘Do as I Advise, Not as I Do’?

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Economic consequences of corporate governance disclosurePhoto of Ross Lu

RESEARCH PAPER: Economic Consequences of Corporate Governance Disclosure: Evidence from the 2006 SEC Regulation on Related-Party Transactions 

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Corporate news and institutional tradingPhoto of Alan Huang

RESEARCH PAPER: Institutional Trading around Corporate News: Evidence from Textual Analysis

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Emissions management strategy disclosures and their influencePhoto of Adam Vitalis

RESEARCH PAPER: The Influence of Firms' Emissions Management Strategy Disclosures on Investors' Valuation Judgments

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Perceived subjectivity and pay transparency on professional judgementPhoto of Sally Gunz

RESEARCH PAPER: The Interaction of Perceived Subjectivity and Pay Transparency on Professional Judgment in a Profit Pool Setting: The Case of Large Law Firms

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Online slot machine games and the behavioral implicationsPhoto of Alan Webb

RESEARCH PAPER: Behavioral implications of using an online slot machine game to motivate employees: A cautionary tale

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Board expertise and executive incentivesPhoto of Joyce Tian

RESEARCH PAPER: Board expertise and executive incentives