We find that Sarbanes-Oxley (SOX) had two significant effects on the audit market for nonpublic entities. The first short-run effect stems from inelastic labor supply coupled with an audit demand shock from public companies. As a result, private companies reduced their use of attested financial...

The present paper addresses the case study of a financial institution, the Kendallville Bank, developed by The Anti-Fraud Collaboration. The constituents of the Collaboration are the Center for Audit Quality, Financial Executives International, the National Association of Corporate Directors,...

The present paper addresses the case study of a financial institution, the Kendallville Bank, developed by The Anti-Fraud Collaboration. The constituents of the Collaboration are the Center for Audit Quality, Financial Executives International, the National Association of Corporate Directors,...

Ensuring that firms devote sufficient resources to the reporting process is important for quality reporting. To explore the effects of resources invested in the reporting function, we use a regulatory intervention in South Korea that led to an increase in human capital invested in the reporting...

Upper echelon theory posits that defining, executing, and overseeing an organization’s strategy is a shared activity among top executive teams. Based upon this perspective, we explore whether greater turnover among the members of a firms’ top executive group other than those with direct...

Although most owners and managers would like to think they have complete control over every aspect of their business, they are wrong; there is always something going on which they don't know. Unfortunately employee theft is a common occurrence in companies that often goes unnoticed for lengthy...

We propose a new methodology to identify non-compliance with FASB guidance with respect to the dividend yield and the volatility rate for stock option valuation disclosures. The FASB gives firms some flexibility in choosing these parameters. Accordingly, we take into account a number of...

This study tests whether an association exists between the geographic location of industry sector leaders in an auditing firm and differences in audit pricing for that same auditing firm's industry clients. Using organizational learning theory and human capital theory, we predict that the...

This paper uses executives' membership on an extramarital dating website as a negative proxy for ethics and finds that financial statements from the firms of unethical executives are more likely to be restated. The likelihood of restatement is higher when unethical executives are CEOs....

This study examines whether the CFO’s unconscious verbal mimicry of the CEO is associated with the company’s financial reporting quality. We measure verbal mimicry using Language Style Matching between the CEO and CFO (CEO-CFO LSM). We predict that high CEO-CFO LSM is associated with lower...