From the sociolinguistic perspective, this study examines whether the honorific and actual-name appellations that Chinese auditors use to address clients in audit reports connote differential financial misstatement risk. Specifically, we hypothesize that auditors' use of honorifics signals their...

This study investigates whether companies engage in audit opinion shopping activities by exerting influence over an audit firm's decision to switch the engagement partner (“partner-level opinion shopping”) in the Chinese setting, where the identities of engagement partners are publicly...

Closed-end country funds are interesting in that they have two sets of prices for the same underlying assets – the net asset value (NAV) of the fund holdings as measured using the underlying firms' stock prices in their home markets and the fund price at which the fund trades on a U.S. stock...

During the most recent financial crisis, the economic difficulties, along with potentially high uncertainties associated with fair value estimates, increased the audit risks for bank auditors. We analyze a sample of U.S. public banks during the crisis (2008-2009) and after the crisis...

This study examines the private debt contracting relation between performance covenants and conservative accounting under asymmetric information. Asymmetric information is characterized by borrowers' proclivity to appropriate wealth from lenders to themselves. We find that accounting...

We study the dividend optimization problem for a company where surplus in the absence of dividend payments follows a Cramér-Lundberg process compounded by constant force of interest. The company controls the times and amounts of dividend payments subject to reserve constraints that dividends...

In the presence of litigation facing suppliers, the supply-chain relationship is at risk. Suppliers with principal customers (dependent suppliers) have a higher concentration of sales to customers, and they are more at risk relative to suppliers without principal customers (non-dependent...

This study examines the relation between performance covenants in private debt contracting and conservative accounting under adverse selection. We find that under severe adverse selection (i.e., high information asymmetry), accounting conservatism and performance covenants act as complements to...

One goal of the paid family leave (PFL) is to help working mothers balance their careers and family responsibilities and hence improve the well-being of their infants. However, most studies of PFL on early childhood outcomes have been based on the analyses of surviving infants. If PFL reduces...

Delays in Securities and Exchange Commission (SEC) filings often reflect issues related to period-end financial reporting and audit processes. We investigate the impact of filing delays in connection with auditor characteristics on the quality of audited financial statements in a sample of firms...