In this study we examine differences between sophisticated and unsophisticated investors' incorporation of information about the accuracy of sell-side analysts' revisions of quarterly earnings forecasts. Our results indicate that sophisticated investors' weights on information cues associated...

This study examines whether certain types of financial reporting fraud result in a higher likelihood of litigation against independent auditors. We expect that auditors are more likely to be judged responsible for failing to detect commonly occurring frauds or those that stem from fictitious...

This study examines whether frequent and fictitious financial statement frauds increase the likelihood of litigation against independent auditors. We expect that auditors are more likely to be judged responsible for failing to detect frauds with these characteristics. We use companies with SEC...