Based on a model developed in prior studies (e.g. Ogneva et al. 2007), we first use US data to predict the likelihood that a firm has material internal control weaknesses (ICW). We then show, using this model, that firms in the pre-SOX era, in UK and in Australia with a higher predicted...

We examine the impact of the initial PCAOB international inspection in a country on the Big 4/non-Big 4 audit quality differential (the so-called Big N effect) for non-US-listed foreign public companies. Our findings point to the initial PCAOB international inspection narrowing the Big N effect...

We exploit the staggered introduction of the PCAOB’s international inspection program to examine the role that the stringency of public audit oversight plays in shaping US institutional investors’ home bias. Analyzing a sample of foreign firms listed in the United States, we evaluate whether...