Researchers have questioned whether individual differences in moral reasoning might partly account for the variation in auditor misreporting behavior documented in prior experimental-markets research in auditing. In the first experimental market study to directly test the relation between moral...

We study moral judgments regarding budgetary slack made by participants at the end of a participative budgeting experiment in which an expectation for a truthful budget was present. We find that participants who set budgets under a slack-inducing pay scheme, and therefore built relatively high...

We argue that the market for audit services closely resembles a common value procurement (seller's) auction, where auditors generate a private estimate of the actual cost of an audit engagement prior to quoting the client a price. Thus, we conduct a systematic examination of audit pricing and...

We examine the impact of liquidity and diversification, taxes, and loss aversion on the informativeness of insider sales following stock option exercise. We do not find evidence of liquidity and diversification influencing post exercise sale decisions, suggesting that option related sales are...

Suppose a manager wants to increase employee productivity by holding a tournament. Should there be a single long tournament or a series of short and repeated tournaments? Well, it depends. It’s important to first assess whether employees are of similar ability levels or varied ability levels....

In two experiments, this study examines the effects of current and expanded analyst ownership disclosure on nonprofessional investors' confidence in analyst recommendations and on the amount invested by nonprofessionals. Experiment one examines how nonprofessional investors interpret analyst...

In this study we examine the association between audit service fees and non-audit service (NAS) fees and the auditor's final decision regarding the type of opinion to render to a financially distressed client. Along with examining current fee levels and reporting decisions we also test the...

This study uses audit file data to analyze the association between the auditors' preliminary assessments of going-concern and fraud risk and the planning and performance of the financial statement audit. We analyze the association between the above risks and the auditor's assessment of the risk...

We experimentally examine the effects of trait professional skepticism on fraud brainstorming performance. We find that groups with a minority, but not a majority, of high trait skeptics assess fraud risk higher than control groups with no high trait skeptics. These effects persist to group...

Kauser, Taffler and Tan (2009) document a going-concern market anomaly in the U.S., resulting in a sizable downward drift over the subsequent one-year period for first-time going-concern recipients. The authors argue that adverse signals regarding viability are not being impounded appropriately...