This study examines whether internal control quality is associated with auditors' going concern assessments following the implementation of the Sarbanes-Oxley Act of 2002 (SOX). Based on a sample of financially distressed firms that issued internal control reports under SOX Section 404 in 2004...

Effective audit committees provide numerous public benefits including better financial reporting and reduced corporate fraud. Prior to the passage of the Sarbanes-Oxley Act (SOX), research identified specific features of audit committee effectiveness, many of which were subsequently included in...

Both financial and corporate social responsibility (CSR) reporting are bound by global constraints. A common trait among the reporting systems is a growing movement toward comparability and accountability. Global pressures initially motivated the push toward standalone CSR reporting and now...

Given the rising emphasis on environmental disclosures and the expressed importance of ‘good’ governance in determining the extent of information disclosure in general, we examine the relation between specific aspects of governance and media coverage and the quality of voluntary...

China experienced significant economic progress over the past few decades with an annual average GDP growth of approximately 10%. Population expansion has certainly been a contributing factor, but that is now changing as China rapidly ages. Rural migrants are set to play a key role in...

Wu et al. (2023) estimate the effect of classroom seating arrangements in China using a randomized control trial with two treatment schemes. The first treatment scheme involves seating high and low achieving students together, and the second treatment involves this same seating arrangement with...

This paper studies the long-term effect of hedge fund activism on the productivity of target firms using plant-level information from the U.S. Census Bureau. A typical target firm improves its production efficiency within two years after activism, and this improvement is concentrated in...

This paper studies how hedge fund activism impacts corporate innovation. Firms targeted by activists improve their innovation efficiency over the five-year period following hedge fund intervention. Despite a tightening in R&D expenditures, target firms increase innovation output, as measured by...

This paper studies how demand for labor reacts to financial technology (fintech) shocks based on comprehensive databases of fintech patents and firm job postings in the U.S. during the past decade. We first develop a measure of fintech exposure at the occupation level by intersecting the textual...

This paper identifies a limit to arbitrage that arises from the fact that a firm's fundamental value is endogenous to the act of exploiting the arbitrage. Trading on private information reveals this information to managers and helps them improve their real decisions, in turn enhancing...