This research investigates the relationship between reputation and two types of agency costs, namely those associated with auditing and those associated with value-reducing activities of management resulting from their capitalizing on asymmetric information by misreporting income. A...

Fifty or so years ago, the concept of the financial ratio was popularized as a means of eliminating or adjusting for the effect of firm size in cross-sectional analyses of financial statements. Since that time, financial ratios have been used in hundreds, or perhaps thousands, of research...