We investigate restatement contagion to strategic alliance partners, and we document a negative stock price reaction for non-restating firms whose alliance partners announce an accounting restatement. This contagion effect is larger when the institutional bonding between alliance partners is...

The Financial Accounting Standards Board introduced FIN 48 (ASC 740-10) to increase relevance and comparability in the reporting of uncertain tax positions. The extant literature has found mixed results when examining if these goals have been met. Using a difference-in-differences design, we...

We examine whether worker representation on corporate boards results in improved monitoring or payroll maximization. Several economic theories predict that worker representatives would use control and voting rights in the boardroom to transform firm assets into private benefits and increased...

We examine whether worker representation on corporate boards results in improved monitoring or payroll maximization. Several economic theories predict that worker representatives would use control and voting rights in the boardroom to transform firm assets into private benefits and increased...

We propose and demonstrate a new method for validating proxies for accounting constructs. Our method consists of first identifying high-value observations, which are those statistically most responsible for generating a coefficient of interest, and second determining whether those observations...

Analyst forecasting bias is frequently attributed to opportunism. We argue that opportunism is not a necessary condition for bias and propose a simple model, based on research in behavioral economics and psychology, of belief-based probability weighting. The model is used to develop benchmarks...

This paper examines whether the increased accounting guidance and reporting requirements of FIN 48 impact the adequacy and accuracy of tax reserves and the effect of auditor-provided tax services on tax reserves. While we do not find FIN 48 affected the adequacy or accuracy of tax reserves on...