Our study examines whether CPA firms take measures to improve their audit quality and restore trust among investors when their reputations are in danger subsequent to disciplinary actions by the government regulatory agencies in China. Compared with a control group of the CPA firms without a...

Following large-scale auditor consolidations in the late 1980s and early 1990s, along with Arthur Andersen's collapse in 2001, the global audit market has become highly concentrated during the past 30 years. Many interested parties, including regulators, researchers, and practitioners, disagree...

Effective from January 1, 2018, IFRS 9 changed banks' accounting for the impairment of financial assets by replacing the incurred credit loss (ICL) model with the expected credit loss (ECL) model, which enhances the timeliness of accounting for credit losses. Using a sample of international...

This study examines whether and how labor unionization influences stock price crash risk. Using a regression discontinuity design that employs union elections as an exogenous shock yielding local variation in unionization, we find that unionization leads to a significant decline in stock price...

We examine the economic benefits of paying dividends. We find that dividend payments mitigate stock price crash risk. In addition, we show that dividend payments reduce bad news hoarding (overinvestment) while bad news hoarding (overinvestment) is positively associated with stock price crash...

Technology spillovers have previously been shown to positively affect a firm's market value and innovation activities. We build on this literature by showing that value-relevant information from technology spillovers significantly reduces the likelihood of the focal firm experiencing a stock...

We examine the role of capital market pressure in firms' international tax-motivated decisions. We use two exogenous events to identify the relation: the temporary lifting of short selling restrictions for randomly selected pilot firms under SEC Regulation SHO (called Pilot firms) and the...

Using a large sample of both publicly traded and privately held firms in Korea, this paper investigates whether, and how, the deviation of controlling shareholders' control from ownership, business group affiliation, and listing status differentially affect the extent of earnings management. Our...

Psychology and neuroscience studies document that facial trustworthiness perceptions may affect observers' decision-making process. Our study examines whether auditors' perceptions of client executives' facial trustworthiness are associated with their audit fee decisions. We employ a...