Developing models to detect financial statement fraud involves challenges related to (i) the rarity of fraud observations, (ii) the relative abundance of explanatory variables identified in the prior literature, and (iii) the broad underlying definition of fraud. Following the emerging data...

This study investigates the consequences of information systems compatibility between the target and acquirer firms in the context of mergers and acquisitions (M&A). We posit that the degree of information systems compatibility impacts post-M&A operating efficiency and audit efficiency. Using a...

In recent years, as the concept of sustainable development has grown in popularity, ESG has attracted widespread interest from people of all backgrounds. This paper empirically investigates the impact of corporate ESG performance on bond credit spreads using a sample of 988 bonds issued by 443...

We analyze the impact of the press on the behavior of various economic agents by examining how media exposure of board ineffectiveness affects corporate governance, investor trading behavior, and security prices. The results suggest that media releases of (noisy) information have significant...

We analyze whether the nondisclosure of accrual information at earnings announcements might contribute to the abnormal accrual anomaly. Prior studies draw inferences about the pricing of (abnormal) accruals at earnings announcements and around the filing dates through analyses of the long-term...

Prior studies suggest that managers use their reporting discretion to signal their private information. Because of the litigation risk associated with inflating earnings, we conjecture that managers are more likely to use their reporting discretion to signal favorable private information when...

Regulators and shareholders generally oppose any restriction on clients' rights to sue their auditors, believing that such restrictions would impair reporting quality. However, the evidence suggests that the opposition to limitation of liability agreements (LLAs) between clients and auditors is...

We examine the value of changes in U.S. investors' perceptions of audit quality by analyzing the market reaction to the first public revelation of liability limiting agreements (LLAs) in audit engagement letters of publicly traded firms. The revelation of the existence of LLAs in audit...

Using hand collected Level 3 data, we find that banks near key capital ratios report higher unrealized gains in Level 3 assets, consistent with managers using unrealized gains in earnings from Level 3 valuations to boost capital ratios. Additionally, we document an incremental pricing discount...

This policy brief tells the story of Reading Partners, a successful one-on-one volunteer tutoring program that serves struggling readers in low-income elementary schools and that has already been taken to a large scale. In the years since its inception, Reading Partners has grown to serve more...