Conventional wisdom suggests that audit risk disclosure improves the quality of audited financial reports because the disclosure reduces information asymmetry between investors and companies. In contrast, we show that audit risk disclosure provides companies with another channel to influence...

We investigate whether managerial risk aversion, as measured by CEO political ideology, affects corporate decisions to undertake earnings management. Using a sample of 10,799 firm-year observations for S&P 1500 firms during the period from 1996 to 2008, we document that Republican CEOs, who tend...

Conventional wisdom suggests that partner identification disclosure can improve audit quality, because it may enhance transparency and individual accountability. Building on a two-period assignment model, we show that under certain conditions, the disclosure can distort partner client assignment...

This study investigates whether and how customer concentration in supply chains affects suppliers' incentive to engage in real earnings management. Building on the recent debate over the collaboration hypothesis and the rent extraction hypothesis, we show that with concentrated major customers,...