Using proprietary PCAOB data on audit firms' internal inspection programs, we study the effect of audit firm internal governance on auditor behavior and financial reporting quality. Internal inspection programs are an important quality control mechanism within large audit firms. We find that...

We review recent literature on the role of financial reporting transparency in reducing governance-related agency conflicts among managers, directors, and shareholders, as well as in reducing agency conflicts between shareholders and creditors, and offer researchers some suggested avenues for...

There is significant disagreement about whether, when and why IPO firms manage earnings. We contribute to the literature by precisely identifying the timing and motives behind earnings management by IPO firms. We emphasize that the period around IPO is characterized by two distinct events: the...