We examine the efficacy of public enforcement in weak investor protection countries by examining the outcomes of a comprehensive public enforcement campaign in China. The campaign, launched in 2007, was designed to help enforce China's first mandatory Corporate Governance Code, issued in 2002....

We develop a state‐of‐the‐art fraud prediction model using a machine learning approach. We demonstrate the value of combining domain knowledge and machine learning methods in model building. We select our model input based on existing accounting theories, but we differ from prior...

We examine the usefulness of SOX-mandated internal control deficiency (ICD) disclosure under Section 302 in assessing earnings quality for cross-listed firms relative to U.S. firms. Consistent with prior research, we find that U.S. firms' Section 302 ICD disclosure conveys useful information...

We investigate the relationship of candidate information asymmetry measures to aspects of insiders' trades. For two of the measures, the median absolute abnormal return over past earnings announcements (MAG_AR) and whether the firm reports Ramp;D expenditures, associations are consistent with...

We investigate if the SEC's mandated disclosure of fees for audit and nonaudit services affected the market's perception of auditor independence and earnings quality. Following the initial fee disclosures, we find that the market valuation of quarterly earnings surprises (earnings response...

We investigate the relationship between insider trading and candidate measures for the degree of information asymmetry between insiders and other market participants. The coefficient estimates on certain of the candidate measures assume a sign that is inconsistent with the predicted relationship...

This study offers evidence on the earnings forecast bias analysts use to please firm management and the associated benefits they obtain from issuing such biased forecasts in the years prior to Regulation Fair Disclosure. Analysts who issue initial optimistic earnings forecasts followed by...

This study identifies one potential benefit of mandatory investor protection laws in weak investor protection countries neglected by the extant literature: laws help reduce firms' bonding costs to strong corporate governance. We argue that corporate insiders (outside investors) have little...

We examine the impact of China’s 2012 anti-corruption campaign, which targets the excesses of government officials and SOE executives, on the performance of publicly listed Chinese SOEs. Using publicly listed non-SOEs as a benchmark, we find that the campaign reduced the overall performance of...

The surge in the number and value of cross-border mergers and acquisitions (M&As) by Chinese firms in recent years has attracted worldwide attention. To better understand the causes and consequences of Chinese firms’ cross-border M&A activities, we review the theoretical and empirical...