Capitalizing on a unique setting in China where auditors disclose their prosocial activities, we examine the role that auditor social responsibility (ASR) plays in shaping their performance. In one direction, the behavior consistency theory implies that individual auditors exhibiting more social...

Firms undertaking an initial public offering (IPO) appoint investment bankers and auditors to certify information disclosed to investors. We examine the role that alma-mater ties between the two intermediaries play in shaping audit quality. Although some evidence suggests that information...

We examine whether audit partners with prior non-public accounting industry experience conduct higher quality and more efficient audits. We further analyze whether the sequencing and nature of this experience matters by splitting audit partners with prior industry experience into those who...

The increase in disclosure about the persons conducting audits has led to a steep rise in research examining the role that individual audit partners play in audit outcomes. Although recent evidence suggests that individual audit partners explain a substantial portion of the variation in audit...

We analyze whether information asymmetry affects three major aspects of the audit process using an instrumental variables research design that exploits exogenous increases in information asymmetry stemming from brokerage house mergers and closures. Consistent with our predictions, we find that a...

We examine the importance of Big Four audits in reducing agency costs evident in corporate debt maturity worldwide. Analyzing a large sample of public firms from 42 countries reveals that the fraction of long-term debt in firms' capital structures rises with the presence of a Big Four auditor,...

Relying on their history of legal infractions to measure individuals' risk tolerance, we examine the association between engagement partners' risk appetites and audit quality in the U.S. Criminology and economics research links criminal activity with enduring personality traits that capture an...

Although recent evidence suggests that individual audit partners explain a substantial portion of the variation in audit quality proxies, much less is known about what determines an audit partner’s quality. Psychology and behavioral economics theories hold that an individual’s experiences...

We analyze a unique auditor independence threat stemming from audit partners’ incentives to secure new revenue streams using the context of audit clients belonging to business groups. Since a partner who issues a modified audit opinion (MAO) to a group-affiliated client risks losing not only...