Ineffective internal controls over financial reporting often relates to a lack of qualified personnel with sufficient accounting and technical expertise. In this study, we examine whether firms respond to internal control failures by increasing their demand for specific accounting and finance...

This study examines the effects of lenders' recent default experience on borrowers' timely lossrecognition. We exploit a unique empirical setting that examines defaults occurring in lenders'loan portfolios that are unrelated to the firms of interest. We find that borrowers increase timelyloss...