Regulators have expressed concern that investors are ldquo;confusedrdquo; by the high volume and questionable materiality of accounting restatements since passage of the Sarbanes-Oxley Act (SOX). These concerns are consistent with a history of regulatory skepticism about investors' ability to...

This study examines whether boards discipline CEOs and CFOs more severely for accounting restatements after passage of the Sarbanes-Oxley Act (SOX). The disciplinary actions I focus on are job termination and reductions in bonus payouts. Boards have incentive to take the highly visible action of...

This study investigates how those in charge of monitoring nonprofits – donors and boards of directors – react to disclosure of financial reporting problems (accounting errors and internal control deficiencies). I find that donations tend to fall following disclosure of severe errors and...

To encourage banks to accommodate distressed borrowers during the COVID-19 pandemic, regulators redacted loan modification activity from each bank’s public regulatory filings so that banks could modify loans free from capital market scrutiny. Congress also superseded U.S. GAAP by allowing...

This study examines the use of linear regressions that include interaction terms, finding frequent interpretation errors in published accounting research. We provide insights on how to estimate, interpret, and present interactive regression models, and explain seldom-used but easily-implemented...

We examine whether variation in the separation of ownership and control influences the tax practices of private firms with different ownership structures. Fama and Jensen (1983) assert that when equity ownership and corporate decision-making are concentrated in just a small number of...

Using a sample of restatement firms and a meet-or-beat model to classify firms as making discretionary accounting choices for opportunistic meet-or-beat (OP-MB) reasons, we show that originally reported earnings and accrual components are less predictive of future cash flows relative to the...