This paper examines the association between managers' cash bonuses and discretionary accounting choices in a sample of German stock corporations from 2005 to 2007. We investigate managers' earnings management behavior with respect to their bonus compensation and the independence of outside...

This study investigates whether network ties via sharing the same individual auditor influences the diffusion of tax avoidance knowledge. We find that firms with greater connection to low-tax firms through audit partners have lower effective tax rates (ETRs), consistent with tax avoidance...

We examine the relation between client tax aggressiveness and auditor's resignation decision. Consistent with the agency view of tax avoidance which suggests that client tax aggressiveness can increase litigation and reputational risk to auditors and increase the potential conflict with...