We are interested in understanding how agency conflicts in private firms arise through ownership structures and family relationships. Specifically, we analyze auditors' increase of effort and firms' choice of auditors in situations with higher level of agency conflicts. For a large sample of...

We are interested in understanding how agency conflicts in private firms arise through ownership structures and family relationships. Specifically, we analyze auditors' increase of effort and firms' choice of auditors in situations with higher level of agency conflicts. For a large sample of...

This study examines how short-selling threats affect auditors. During 2005-2007, the SEC ordered a pilot program in which one-third of the Russell 3000 index firms were arbitrarily chosen to be exempted from short-sale price tests. As a result, these stocks faced significantly higher...

Previous studies document that lenders lack incentives to monitor borrowing firms or to make concessions during bankruptcy if these lenders insure against corporate default with credit default swaps (CDS). This article investigates whether external auditors increase their audit fees for those...

We examine a set of bankrupt firms and test the relation between going concern opinions [GCs] and the emergence from bankruptcy. If the role of GCs is to alert stakeholders to the potential of financial failure, as prescribed by the auditing standards, then those investors and creditors who...

This paper addresses the large and growing problem of identifying business enterprises for which a 'Going Concern Opinion' (GCO) might be appropriate, and the means by which such decision are reached. Changes in corporate financial health, as they relate to the management and auditor assessment...

This paper investigates the allegations against auditors’ of going-concern audit reporting failures. In light of previous academic studies, I find that SAS 59 is responsible of such allegations. Not only SAS 59 fails to provide a clear definition of what resembles a violation of the...

Audit firms and regulators have both commented extensively on the potential for new sources of data to transform the audit process. We examine whether information on social media could aid auditors’ going concern deliberations and find that more negative social media sentiment, measured using...

Entities like centralized cryptocurrency exchanges fall under the business category of virtual asset service providers (VASPs). As any other enterprise, they can become insolvent. VASPs enable the exchange, custody, and transfer of cryptoassets organized in wallets across distributed ledger...

Despite the number of studies on bankruptcy prediction using financial ratios, very little is known about how external audit information can contribute to anticipating financial distress. A handful of papers have shown that a combination of ratios and audit data is significant for predictive...