The aim of the study is to examine the association between audit quality and individual auditors providing independent audit service to the firms affiliated with the same business group. We used Turkish Listed firms traded in Borsa İstanbul between 2010 and 2016. These auditors have been...

I argue that external financial reporting quality has at best a 2nd order effect on firm value of U.S. publicly traded companies and that attempts to improve a firm's external reporting quality has a 3rd order effect on these firms' value. Recognizing that external financial reporting quality is...

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...

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...

Based on data collected from 616 experienced financial officers who use U.S. GAAP or IFRS and are domiciled in the U.S., Europe, or Asia, we examine how reporting standards (U.S. GAAP vs. IFRS) and domicile (U.S. vs. non-U.S.) affect earnings management (real vs. accrual). U.S. firms using U.S....

Conventional and commonly held wisdom with respect to the adoption of International Financial Reporting Standards (IFRS) is that they lead to improved financial reporting quality and comparability and thereby favorable economic consequences. There are however contradicting evidences disproving...

This study examines the incremental information in loss firms' non‐GAAP earnings disclosures relative to GAAP earnings. Using a large sample obtained through textual analysis and hand‐collection, we posit and find that loss firms' non‐GAAP earnings exclusions offset the low informativeness...

This study uses data on Australian Securities Exchange (ASX) 200 firms for 2011–2014 to examine the impacts of Australian Securities and Investments Commission (ASIC) non–International Financial Reporting Standards (non–IFRS) earnings reporting guidelines on non-IFRS earnings reporting...

Using an experiment with corporate financial managers (e.g., CFOs, controllers), we find that when red flags are present in the financial statements under their review, managers identify those red flags and, in turn, have greater concerns over earnings quality. In addition, when pressure to meet...