Prior research hypothesizes managers strategically time retail price promotions to manage reported earnings. However, the reaction of competitors to such real earnings management behavior is less well studied. Consistent with the prior research, I show evidence that firms use fiscal quarter-end...

We examine whether the media has an indirect corporate governance effect on financial reporting quality (FRQ) that operates through auditors. This occurs because greater media coverage can magnify an auditor’s business risk by exposing the auditor to more potential litigation and reputation...

Pope and Walker examine differences in the timeliness and conservatism of U.S. and U.K. reported earnings. They conclude that the U.S. accounting regime appears significantly more conservative than the U.K. regime, when comparing earnings before extraordinary items. However, when comparing...

Recent theoretical and empirical studies suggest that blockholders (shareholders with ownership ≥ 5%) exert governance through the threat of exit. Blockholders have strong incentives to gather private information and sell their shares when managers are perceived to underperform. To prevent...

Theory from organizations and economics research posits that in an inter-organizational relationship, both parties invest in relationship-specific knowledge, which in turn facilitates the effectiveness of the relationship while strengthening the attachment between the parties. In complex...