We examine whether the use of eXtensible Business Reporting Language (XBRL) for financial reporting (i.e., interactive data submissions) reduces earnings management during the period of XBRL implementation by the U.S. Securities and Exchange Commission. Using a sample of mandated XBRL filers, we...

Using data from 43 markets around the world, we document that firms with larger goodwill balances have a higher stock price crash risk in future years. The positive association between goodwill balances and future crash risk is stronger for firms with weaker incentives to provide transparent...

This study examines whether and how stock exchange self-regulation affects stock market liquidity and corporate transparency. Using a large sample of firms from 46 stock exchanges from 2001 to 2015, we find significant and robust evidence that firms listed in self-regulated stock exchange are...

We examine the impact of financial statement comparability on managers' use of corporate resources. Using the comparability measures of De Franco, Kothari, and Verdi (2011) as proxies for financial statement comparability, we find that, as comparability increases, corporate cash holdings are...

Using the most recent machine learning-based image-processing techniques, we investigate whether banks factor borrowing firm's chief executive officer (CEO) facial trustworthiness into bank loan contracting. We find that banks tend to grant more favorable loan terms to firms with...

Using a large sample of audit client firms over the 2002-2005 period, this paper investigates whether and how the locality of auditor or the geographic proximity between auditors and clients affects audit quality and audit pricing. We use two measures of abnormal accruals to draw inferences...

Using a sample of 9,820 firm-year observations over the 2000-2003 period, this paper examines whether, and how, audit quality proxied by unsigned discretionary accruals is associated with the abnormal audit fee, i.e., the difference between actual audit fee and auditors' expectation on the...

This paper investigates the effects of ownership concentration, foreign ownership and audit quality on the amount of firm-specific information incorporated into share prices (as measured by stock price synchronicity). With a large sample of firms listed on the emerging Chinese market over the...

In this paper, we investigate whether enhanced disclosures via voluntary adoption of International Financial Reporting Standards (IFRS) influence stock price synchronicity or the extent to which firm-specific information is impounded into stock prices. We also study the role of analyst following...

We construct a large sample of 21,608 firm-years with International Financial Reporting Standards (IFRS) adopters and non-adopters from 34 countries over the 1998-2004 period, and evaluate differences in the implied cost of capital between the IFRS adopters and the non-adopters. We also...