Purpose – Section 404 of the Sarbanes-Oxley Act of 2002 (SOX 404) requires auditors to attest to, and report on, management's assessment and effectiveness of the company's internal control systems. This paper aims to examine investor reaction to companies' announcements of new information...

We examine the decision of private sector enterprises from developed countries to acquire state-owned enterprises (SOEs) abroad. Using a sample of US firms buying targets abroad between 1987 and 2009, we find that bidders of SOE fare worse than bidders of non-SOE both in terms of stock price and...

Purpose – The purpose of this paper is to explore the role of manager responsiveness and social presence in the decision to engage in fraudulent expense reporting. While research has focussed on the direct effect of information technology (IT) on user behaviors, there is a lack of research...

This paper examines the impact of mood and social presence of communication medium on ethical decision making within an expense reporting setting. Based on theoretical accounting research (Gaudine and Thorne, 2001), we predict that negative mood will result in more unethical expense reporting....

Entrepreneurship is not only used to create a business idea, but also to restructure a business in response to environmental conditions. Firms that issue equity after emerging from bankruptcy are unique in that they exhibit less asymmetric information than other firms that issue equity. They...

In this article, we assess the stock price performance of 184 firms emerging from Chapter 11 bankruptcy between 1980 and 2006. We find their mean post-bankruptcy performance to be similar to the performance of their size and-book-to-market control firms, as well as to the performance of their...

Starting in 2007, Sovereign Wealth Funds (SWFs) from Asia and the Middle East have invested billions of dollars in major U.S. financial firms. The primary driving force behind their growth is rising commodity prices, in particular oil. Given that SWFs represent a relatively new, cash-rich...

While studies have documented that Initial Public Offering (IPO) aftermarket performance is weak, little is known about how the aftermarket performance is affected by takeovers of the newly public firms. We find that the aftermarket performance of IPOs is more favourable for those newly public...

We compare the wealth effects of acquiring assets from a divesting firm (i.e., acquisitions of divested assets) with the acquisitions of an entire organization (i.e., acquisitions of non-divested targets) abroad. We hypothesize that the ability to select the most valuable assets and leave the...

We study how the countries in which foreign segments are located affect the value of globally-diversified firms. We use the Heritage Foundation/Wall Street Journal Index of Economic Freedom and the World Bank's Financial Development and Structure database to characterize the locations of the...