In recent years, financial reporting problems among Chinese reverse merger firms (CRMs), listed on U.S. exchanges, have attracted unfavorable attention from regulators, investors, and the business press. Under the SOX Act of 2002, managers' Section 302 assessments of internal control over...

In modern economies, technological knowledge can flow between firms through various channels. We test an economic theory that firms most likely to benefit from such knowledge flows disclose information about their technologies more readily, probably to attract technologically compatible...

We examine the impact of financial restatements on managers' subsequent earnings forecasts. We argue that restatements create conflicting incentives. One incentive is to repair manager reputations as information providers by providing more and better guidance via earnings forecasts. The opposing...

SEC Staff Accounting Bulletin No. 74 (SAB 74, U.S. SEC 1987) requires registrants to provide information about the predicted financial statement effect of an enacted but not yet adopted accounting standard. The objectives of SAB 74 disclosures are to inform users the registrant will be required...

Data breaches are becoming increasingly pervasive and costly to firms. Prior and recent studies on the consequences of disclosed data breaches primarily focus on the direct effects on the breached firms. We undertake a different approach by studying the spillover effects from breached customer...

Prior research argues that one reason firms engage in corporate spinoffs is to increase firm value by reducing information asymmetry with shareholders (the “information hypothesis”). However, the literature has yet to identify a mechanism through which this reduction in information asymmetry...

Three recent PCAOB releases increase PCAOB registrant's disclosure requirements. Form 2 (2009) requires audit firms to file an annual report to facilitate analysis and inspection by the PCAOB; Form 3 (2009) requires timely reporting of disciplinary, administrative and other proceedings related to...

Prior studies have theoretically and empirically documented that incentives to disclose information involve a trade-off between the benefits to the corporation of reducing information asymmetry and the costs of revealing proprietary information. This study investigates the interplay of managers'...