In response to the recent debate on the media, this paper examines the effect of media coverage on firm earnings management. Even if prior studies (Miller 2006; Dyck et al. 2010) have documented the media's role in detecting and deterring accounting fraud (or extreme earnings management), it is...

Psychological and upper echelons theories suggest that CEOs with the personality trait of sensation seeking shape corporate policies. In gauging sensation seeking with whether the CEO holds a pilot license, we examine its importance to firms' accounting conservatism. Our evidence implies that...

Theory suggests that financial-report-based debt covenants engender incentives for the manager to relax covenant constraints through accounting choices in order to avoid costly covenant violations. Prior studies directly testing this hypothesis in the context of financial misreporting fail to...

Capitalizing on a quasi-natural experiment in China where some firms become investible to the global market across different times (i.e., pilot firms), we explore the role that stock market liberalization plays in shaping firms' financial reporting practices. In one direction, market...

Theory suggests that financial-report-based debt covenants engender incentives for the manager to relax covenant constraints through accounting choices in order to avoid costly covenant violations. Prior studies directly testing this hypothesis in the context of financial misreporting fail to...