We investigate how the increasing use of automated model-based credit scores and the inevitable devaluation of private information channels affect private firms’ earnings management choices. Our analysis shows that credit-scoring algorithms may not be as sophisticated as expected since they do...

Regulators in the US ruled against introducing mandatory firm rotations in addition to the existing rule for periodic partner rotations. In contrast, European regulators ruled in favour of a dual mandatory rotation rule in which both audit firm and audit partner rotations are required. Employing...