We examine the relation between voluntary clawback adoptions in the US and firms’ propensity to issue earnings forecasts and the frequency of such forecasts. We find that clawback adoptions are followed by an increase in the likelihood and frequency of managers issuing earnings forecasts....

We examine the relation between nonaudit fees and SOX 404 opinions on the effectiveness of a client's internal control over financial reporting. We find a negative association between nonaudit fees and the auditor's propensity to issue an adverse SOX 404 opinion during 2004-2006 (when AS2 was...