We exploit the technological closeness among clients of the same auditor to examine whether auditors accumulate knowledge from their clients’ technological proximity. We find that a client firm’s technological proximity to other clients of its audit office improves audit quality and results...

Using the U.S. Securities and Exchange Commission's mandate of extensible Business Reporting Language (XBRL) as a natural experiment, this study investigates whether and how the decreased information-processing costs brought about by XBRL influence firms' breadth of share ownership. We find that...

This study investigates the effect of the debtor–creditor relationship on firms' tax planning decisions. We explore the initiation of credit default swaps (CDS) as a shock to the debtor–creditor relationship that attenuates the concavity of creditors' payoff function and reduces their...

This study examines the hitherto unexplored question of whether and how a firm's social performance influences the breadth of that firm's share ownership. We predict and find that firms with higher corporate social responsibility (CSR) ratings attract more institutional investors (especially...

We exploit the staggered introduction of the PCAOB’s international inspection program to examine the role that the stringency of public audit oversight plays in shaping US institutional investors’ home bias. Analyzing a sample of foreign firms listed in the United States, we evaluate whether...

Using the staggered changes in unemployment insurance (UI) benefits across states in the US as an exogenous shock to employees’ costs of unemployment and the hiring firm’s costs of disclosure, this study investigates whether and how a firm’s relationship with its employees impacts its...