We provide evidence of the impact of Auditing Standard No. 2 (“AS 2”), issued pursuant to the Sarbanes-Oxley Act of 2002 (“SarBox”), on the outcome of auditors in financial reporting litigation. Specifically, we focus on the existence of financial restatements and how and why they...

Imagine if we stopped deciding basketball games by baskets alone. Instead, victory would be determined by a combination of baskets, rebounds, steals, and fouls. Each of these is universally acknowledged as a critical component of the game. Why not reward them directly instead of indirectly, by...

This article is an empirical analysis of the past two years of litigation around cryptocurrencies and other crypto-assets. We collected almost 300 cases from the past two years that, and classified them by the various issues that were litigated in these cases. The article provides the reader...

This study examines the response of First Call financial analysts to company restatements and corrective disclosures that lead to an allegation of securities fraud and compares this with the response of three other informed investor groups - insiders, short sellers, and institutions. The sample...

While much has been written about the ability of financial analysts to predict periodic earnings, little has been documented on the behavior of analysts around irregular events. Such events can have significant effects on earnings and market capitalization. This study examines the response of...

Using a large set of restatement announcements and regulatory filings by U.S.-listed firms between 2003 and 2009, we find evidence that managers aim to reduce litigation risk by (1) bundling negative information, such as earnings restatements, with other public announcements, and (2) leaking...

We document pervasive informed trading activity in equity options before M&A announcements. About 25% of takeovers have positive abnormal volumes. These volume patterns indicate that informed traders are likely using bullish directional strategies for the target and volatility strategies for the...

This book traces the origin of the distinctly American insider trading prohibition, while also detailing the eye-catching recoveries thereunder. Relevant administrative decisions, Congressional inaction, and judicial innovations are all analyzed. Oral arguments, policy speeches, and, of course,...