Using a unique database of banking transactions, I examine the relationship between auditing and income diversion in a sample of 25,824 companies. In contrast to other studies, my methodology enables me to accurately measure corporate theft and observe the fees charged by auditors, which are not...

This paper examines the interaction between income diversion and firm performance. Using unique Russian banking transaction data, I identify 42,483 spacemen, fly-by-night firms created specifically for income diversion. Next, I build a direct measure of income diversion for 45,429 companies and...

The period 2007-2010 marked one of the most severe economic and financial crises in living memory. In this paper we focus on two of accounting's key functions within organizations and markets, financial reporting and governance. In this respect we find that accounting exhibited shortcomings in...