We study the pricing of audit services for strategic alliances, a governance structure involving an incomplete contract between separate firms. Since incomplete contracts do not specify all future contingencies, we expect that the non-verifiability of information and potential agency behavior in...

The China Securities Regulatory Commission (CSRC) launched the Campaign for Strengthening Corporate Governance of Public Companies in 2007. As part of this pilot program, public firms were required to report to CSRC whether their boards had established audit committees and whether these audit...

The effect of workload compression on the behavior of individual auditors has received extensive attention from regulators and scholars. We study this effect by utilizing two unique institutional features of the Chinese capital market: (1) the auditor signature requirement that reveals audit...

We document that the initiation of audit committee interlocks is associated with contagion in reported special items. We argue that this is, in part, attributable to contagion of accounting policy choices. We find that the special items of newly interlocked firms, unrelated before interlock,...

Building on an auction model, we examine the economic consequences of audit retendering, under which the incumbent auditor in auction possesses both an information advantage and knowledge advantage over outside auditors. Audit retendering allows the firm to retain the incumbent auditor with...