This study examines the extent to which financial statement disaggregation (FSD) affects syndicated loan terms in an international setting. We find that greater FSD is associated with more favorable syndicated loan terms and that such effect is more pronounced in countries with strong creditor...

This paper examines the role of mutual funds in enhancing financial reporting quality in China. Mutual funds are more sophisticated and influential than individual investors. Therefore, they are expected to be more effective at preventing executives from expropriating investors and manipulating...

Roychowdhury (2006) constructed the measure of abnormal production costs to detect overproduction behaviour, which is widely used as a valid proxy in real earnings management. However, there is little evidence about its validity. This study is intended to fill the gap by focusing on the measure...

This study examines whether voluntary disclosure enhances investment efficiency through its information-leveling role in the capital markets. We argue that investment efficiency improves with the quality of managers’ past earnings forecasts because past forecast quality alleviates information...

We hypothesize that if individual auditors possess unique audit styles that they consistently apply to different audit engagements, then client firms with a common signing auditor will exhibit higher earnings comparability. Using a large sample of Chinese firms, we find that client firms report...

The unique institutions in Taiwan may add to our understanding of the effect of initial public offering (IPO) firm disclosures. Consistent with the notion of market mispricing, most of Taiwan's IPOs were with consecutive up-limit hits followed by substantial price reversals. In this study, we...