lower audit quality and financial reporting quality. This study examines the relation between audit fee cuts and banks … current period LLP and future loan charge-offs, i.e., LLP validity, and the timely recognition of loan losses. For banks … increasing in audit fee cuts. For banks audited by non-Big 4 auditors, LLP validity is higher for banks that received a fee cut …

We examine the effects of CEO turnover in banks. Incoming bank CEOs face problems from information asymmetry because … banks' operations are opaque and bank risk can change dramatically in a short time. Incoming bank CEOs may therefore change … bank policies to manage their personal risks. Since CEO turnover is usually endogenous, we utilize a setting where CEO …