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 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...

We analyze the impact of cross-audits between companies and mutual funds on auditors' reporting decisions. We document that companies are more likely to receive favorable audit opinions when they appoint the same auditor as their mutual fund blockholders. In cross-sectional evidence consistent...

We examine the role that an audit firm’s national office plays in shaping its practice offices’ economic outcomes. Given that national offices provide superior support, monitoring, and advising to physically closer offices, we expect an increase in proximity to improve practice offices’...

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 extend prior research by exploring the importance of social ties among auditors' clients to audit quality. On one hand, social ties foster communication among clients concerning how to deal with an auditor, helping clients negotiate against proposed audit adjustments. On the other hand,...

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...

We examine whether auditors respond to cybersecurity risks by investing more heavily in cybersecurity human capital. Additionally, we explore auditors’ role in helping their non-breached clients in raising cybersecurity awareness and investing in cybersecurity personnel. We find that audit...

We examine the role that individual auditors' social capital plays in their audit quality, client acquisition activities, and career advancement. Our analysis focuses on social capital stemming from educational ties, as measured by the size of an auditor's university alumni network among those...

We find that mutual funds whose managers are socially connected with firm auditors hold more shares of these firms and generate superior portfolio returns. Cross-sectional results reveal that the relation between social connections and mutual fund stockholdings is more pronounced: when the...