<heading id="h1" level="1" implicit="yes" format="display">ABSTRACT</heading>We explore the market response to announcements of first-time going-concern (GC) audit opinions and, for a subset of these cases, their subsequent withdrawal, from 1993 to 2005. We find that the market fully responds to GC withdrawal announcements but underreacts to the GC announcements...

We examine whether banks that paid higher levels of excess compensation prior to the financial crisis made more compensation-related risk disclosures in their proxy statements and made greater changes to their compensation practices following the financial crisis. If banks with higher excess...

This study examines whether and how the terms of CEO compensation contracts at large commercial banks between 1994 and 2006 influenced, or were influenced by, the risky business policy decisions made by these firms. We find strong evidence that bank CEOs responded to contractual risk-taking...

We show that contractual risk-taking incentives for chief executive officers (CEOs) increased at large U.S. commercial banks around 2000, when industry deregulation expanded these banks’ growth opportunities. Our econometric models indicate that CEOs responded positively to these incentives,...

We examine the cross-sectional determinants of audit engagement length, paying particular attention to abnormal accruals as a potential driver. We are interested in how the potentially incongruent incentives of managers and auditors can cause frictions, and in turn affect the audit...

In this study, I examine the voluntary disclosure behavior of high-tech firms experiencing bad economic news. I create a sample of 100 randomly-selected firm-quarters with negative returns—but not necessarily negative earnings surprises. I find that: (i) the unconditional relation between...

We examine the actions that insurance firms take immediately after the September 11 attacks to reduce information asymmetries. We find that voluntary disclosure behavior is positively related to the magnitude of the September 11-related loss. Conditioning for the loss, disclosure behavior also...