Purpose –This paper aims to examine the relationship between firms’ decisions to expense employee stock options (ESOs) under the voluntary period of Statement of Financial Accounting Standard No. 123 (SFAS 123) and their market-to-book (MTB-1) ratio and conditional conservatism. Conservatism...

Purpose – The purpose of this paper is to compare the effect of corporate governance variables and fraud litigation on audit fees both before and after the implementation of the Sarbanes-Oxley (SOX) Act in 2002. Design/methodology/approach – The paper utilizes a sample of firms that had...