The Roman Holiday Pizza Paradise case provides an audit setting that requires students to understand and perform procedures related to the audit of a fair value estimate in connection with the impairment of an unusual intangible asset, reacquired franchise rights, in the pizza restaurant...

We investigate whether or not a firm's corporate social responsibility (CSR) activities influence analysts' behavior. CSR is concerned with the impact of corporations' present actions on the ecosystems, societies, and environments of the future and includes both positive and negative attributes....

This study investigates whether or not related party transactions serve as a “red flag” that warns of potential financial misstatement. We hand collect related party transactions for S&P 1500 firms in 2001, 2004, and 2007 and find a positive correlation between these transactions and future...

Prior research shows that managers use discretion in estimating Level 3 financial instruments to opportunistically manage capital and earnings. We investigate an earlier decision, subsequent classification changes that result in net transfers into the Level 3 classification, to examine whether...

We examine the relationship between aggressive income-increasing real earnings management (REM) and current and future audit fees. Managers pursue REM activities to influence reported earnings and, as a consequence, alter cash flows and sacrifice firm value. We posit that the implications of REM...

We investigate changes in the level of non-audit services (NAS) provided by incumbent auditors following strengthened auditor independence rules required by the Sarbanes-Oxley Act of 2002 (SOX). On the one hand, the provision of NAS may impair auditor independence. Alternatively, benefits from...

We examine the association between U.S. audit market structure and both audit price and quality. The significant consolidation of the largest audit firms and its effect on market structure has raised international concern among policy makers. We address this concern by examining the association...

We investigate whether family firms are more likely to engage in related party transactions (RPTs) and the impact of RPTs on the previously documented family firm value premium (Anderson and Reeb 2003). While RPTs are strategic in some situations and opportunistic in others (Kohlbeck and Mayhew...

Using network and agency theories, we investigate the association between lender networks and their borrower’s financial statement quality. Specifically, we operationalize lender networks by creating a novel network of lenders based on common borrowers. Borrowers that have lending...

We investigate whether supplier investment decisions are associated with their major customer’s strategic disclosure tone. Customers are incentivized to strategically manipulate disclosure tone to attract more stakeholder investment, including that of suppliers. However, compared to other...