We find a causal dampening effect of stock liquidity on accruals-based earnings management (AEM). We rule out the explanation of the finding that stock liquidity amplifies the deterring effect of blockholder intervention and exit on AEM. We show that the finding is consistent with the long-held...

Existing studies usually investigate the effects of Trump’s trade war on U.S. financial markets by the event-study method. We take an alternative approach by integrating trade war-related news into one single "trade war shock" based on a structural vector autoregression model identified via...