We examine whether firms engage in classification shifting to meet performance targets during mergers and restructuring. Using a sample of listed firms that complete major asset restructuring and sign performance commitment agreements from 2008 to 2019, we find that during the commitment period,...

This study investigates the competitive strategies of the international Big 4 audit firms when faced with regional competition from the local Big 6 audit firms. We find that for the Big 4, competition reduces their audit fee premiums and forces them to recruit high-risk clients, while does not...

Combining the company’s risk of financial fraud predicted by the machine learning method and unique Chinese data of board voting, this study investigates whether independent directors can identify the company’s risk of financial fraud. We find that independent directors are more likely to...