We investigate whether ineffective internal control over financial reporting has implications for firm operations by examining the association between inventory-related material weaknesses in internal control over financial reporting and firms' inventory management. We find that firms with...

We examine whether auditors exercise professional skepticism about management earnings forecasts when making going-concern decisions. Using publicly issued management earnings forecasts as a proxy for earnings forecasts provided by managers to auditors, we find that management earnings forecasts...

We document that, when revising their short-term earnings forecasts in response to management guidance, analysts wishing to curry favor with management weight the guidance more heavily than predicted based on the credibility and usefulness of the guidance. This overweighting of guidance is...

This paper investigates internal control restatements, i.e., companies and their auditors restating Section 404 internal control (IC) opinions from clean to adverse, after announcing financial statement restatements. We compare IC restatement companies with both companies that issue adverse IC...

This paper investigates the costs, benefits and frequency of management earnings guidance issued by firms manipulating earnings. We find that, when manipulations are detected, misstating firms issuing guidance and their managers incur additional legal costs, as reflected in the higher settlement...

This study examines whether auditors incorporate information contained in their clients’ stock prices when auditing the clients’ financial reports. We find that audit adjustments are significantly associated with the misalignment between clients’ annual stock returns and pre-audited...

This paper examines firms' voluntary disclosures regarding open market repurchase programs, i.e., announcements that firms have suspended, resumed, or completed repurchases. Abnormal returns around announcements are, on average, positive when firms voluntarily announce repurchase resumptions or...

This study examines how industry peers share information when they are engaged in tacit collusion. We develop a model of firms' information sharing and production decisions and use it to establish that firms engaged in tacit collusion are more likely to share information when current market...

We examine how management quarterly guidance strategy is affected by various outcomes from previously issued guidance. We find that managers are less likely to provide quarterly earnings guidance for a given year when past management forecasts have been overly optimistic, when past forecasts...

We provide a list of Points to Consider (PTCs) to help researchers self-assess whether they have addressed certain common issues that arise frequently in accounting research seminars and in reviewers' and editors' comments on papers submitted to journals. Anticipating and addressing such issues...