We examine the effect of litigation risk on management's decision to issue earnings forecasts. We use a new ex ante measure of litigation risk, namely, the Directors and Officers liability insurance premium. This measure bypasses significant problems associated with the estimation of ex ante...

This study examines the relation between managerial risk tolerance and corporate credit ratings. Using pilot licensing status as a proxy for managerial risk tolerance, we find that firms led by pilot CEOs receive worse credit ratings, suggesting that highly risk-tolerant CEOs impair their...

Using a measure of office-level industry concentration/specialization (as opposed to a market-based measure), we identify situations in which auditor industry specialization could be detrimental for audit outcomes. In stable environments, industry specialist auditors should be able to apply...