...Brian K. Baik; Natalie Berfeld; Rodrigo S. Verdi ABSTRACT We study whether the availability of public audited financial statements influences the probability of private firms receiving private firm equity financing. Using a setting in the EU with plausibly exogenous variability in the extent...

... find no consistent evidence that private firms are more aggressive tax planners. We then examine whether private firms’ tax planning differs from that of public firms more generally. We find that private firms engage in more conforming tax planning (planning that also reduces pretax accounting income...

... but also about firm owners. This tie is especially strong in private firms with one or a few owners, where the firm represents most of the owners' personal wealth and income. In such cases, firms' financial disclosures indirectly expose personal financial information, which is known to trigger serious...

... spillovers (private firms) to firms with equity spillovers (public firms). I find that, absent equity spillovers, analysts rely more on mandatory SEC filings to fill the information gap for private firms. This additional effort, however, reduces debt analysts’ coverage of private firms overall. Conditional...

... investment by private peers that share common input or output markets. An alternative shared sentiment hypothesis predicts a positive relation because private firm stakeholders share in the sentiment associated with misvaluation in public markets. Misvaluation is proxied using both the price...

... empirical measures of both conforming and nonconforming tax avoidance. conforming tax avoidance capital market pressure tax planning private firms Understanding the extent to which firms utilize conforming tax strategies is important because some firms could exhibit high effective tax rates...

...Ole-Kristian Hope; Wayne B. Thomas; Dushyantkumar Vyas ABSTRACT: Using a new database that contains accounting data for a large sample of U.S. private firms, we provide an investigation of financial reporting quality (FRQ) of U.S. private versus public firms. We find that in general public firms...

...Feng Chen; Ole-Kristian Hope; Qingyuan Li; Xin Wang ABSTRACT Prior research shows that financial reporting quality (FRQ) is positively related to investment efficiency for large U.S. publicly traded companies. We examine the role of FRQ in private firms from emerging markets, a setting in which...