There is evidence that insiders can overcome monitoring mechanisms and report low quality earnings, even in firms that meet the new legislative and exchange standards for governance. We show that earnings quality is directly affected by entrenched board members and that both independent and...

Recently leaders of the accounting profession have been supporting enactment by the U. S. Congress of tort reform legislation. One of the supporting arguments raised in favor of such reform is the negative impact on the accounting profession of litigation under the existing system. One element...