We investigate the effect of auditor litigation risk on firm-level investment. Exploiting the staggered increase in … third-party auditor legal liability in US states as an exogenous shock, we find that increased risk of auditor litigation … labour. Firms in states with increased auditor litigation risk are also more efficient in their investment in fixed assets …

We examine the effect of auditor litigation risk on firm capital structure decisions by exploiting staggered state …-level shocks to third-party auditor legal liability in the United States. We find that an exogenous increase in auditor litigation … maturities. We also find that firms in states with increased auditor litigation risk increase leverage to optimal debt levels …

of auditor independence and illustrate how changes in the organizational design of the state can improve government …

, we analyze firm misreporting, auditor monitoring and competition, and regulatory policy in a unified model. A federated …

-maximizing tax authorities offer ATRs if the ruling enables them either to significantly reduce their tax audit costs or to increase …

governance system based on a board of directors and an external audit committee, although the percentage of firms adopting the …