Using a game-theoretical model, we examine reasons and driving forces for audit firm split-ups, like the case of EY. In addition, we also analyze the potential consequences of audit firm split-ups on both the audit market and the audit quality. We find that the split-up decision is mainly driven...

Should employers disclose their assessments of their employees? Popular managerial advice suggests that telling employees that they are assessed to have high potential leads to greater effort and engagement, boosting firm profits. However, some employers still choose to withhold employee...

We examine whether higher book-tax conformity and its effects on firms’ investment and tax reporting decisions decrease misleading tax reporting and increase tax revenue. In contrast to previous studies, we incorporate an investment decision into a strategic tax-compliance model. In the model,...