There is little research on how accounting information quality affects a firm's external financing choices. In this paper, we use the occurrence of accounting restatements as a proxy for the reduced credibility of accounting information and investigate how restatements affect a firm's external...

We investigate the impact of founding family ownership on accounting conservatism. Family ownership is characterized by large, under-diversified equity stake and long investment horizon. These features give family owners both the incentives and the ability to implement conservative financial...

Taxes represent a significant cost to the firm and shareholders, and it is generally expected that shareholders prefer tax aggressiveness. However, this argument ignores potential non-tax costs that can accompany tax aggressiveness, especially those arising from agency problems. Firms owned/run...

This paper examines how governance and regulatory reforms surrounding the Sarbanes-Oxley Act (SOX) of 2002 and the Global Settlement (GS) affect the analysts' information environment, specifically the quality of financial analysts' common and private information. Our information quality measures...

We examine the voluntary disclosure practices of family firms. We find that, compared to non-family firms, family firms provide fewer earnings forecasts and conference calls, but more earnings warnings. Whereas the former is consistent with family owners having a longer investment horizon,...

This paper investigates the impact of the founding family's presence in US public firms on the extent of agency problems related to CEO turnover decisions and on firm valuations after poor performance. In particular, we focus on three types of US public firms: family CEO firms, professional CEO...

Prior research finds that earnings restatements are linked to CEOs' excessive option-based compensation and equity holdings. In this paper, we investigate whether firms that experience earnings restatements recontract with their CEOs to reduce their option-based compensation and if so, whether...

This paper critically evaluates the use of analysts' forecasts in accounting-based valuation. Specifically, I assess the usefulness and the limitation of analysts' forecasts in predicting future earnings and in explaining the market-to-book ratio, in light of a comprehensive set of twenty two...