Much of the agency literature assumes that various monitoring devices are partial substitutes in reducing total agency costs. In particular, internal and external auditing often are characterized as monitoring devices that should be partial substitutes. We argue that reliable evidence of this...

This paper presents evidence that management’s disclosure choices related to a restatement are associated with the market reaction at the time the restatement is announced. The two aspects of pre-restatement disclosure choice we examine are the amount of disclosure, hypothesized to reduce...

Existent empirical evidence on the relative performance of auditors’ going concern opinions versus statistical models in predicting bankruptcy is mixed. This study attempts to add new reliable evidence on this important issue by conducting the comparison based upon an improved statistical...