We examine whether auditors respond to cybersecurity risks by investing more heavily in cybersecurity human capital. Additionally, we explore auditors’ role in helping their non-breached clients in raising cybersecurity awareness and investing in cybersecurity personnel. We find that audit...

This study examines whether social and human capital influence the compensation of individual auditors in the small audit firm market. We employ a sample of Italian auditors and use measures from the network and auditing literatures to capture their professional connections, representing social...

Two critical aspects of the model of auditor expertise development in Tan and Libby [1997] are that audit firms do not value tacit knowledge in inexperienced auditors but do value it in experienced auditors. We update the former and extend the latter. Our paper predicts and finds that audit...

In this study, we examine whether education, as an important component of the human capital of auditors, is related to the occurrence of financial misstatement, and investigate the moderating effect of professional experience. Using a sample of 16,651 firm-year observations from the Chinese...

This paper provides evidence on the information content of newly mandated qualitative Human Capital Disclosure (HCD) to equity and bond investors. We hand-collect and code the HCD of 1,636 firms from their 10-K filings based on the first year of the mandatory disclosure requirement. We first...

Two critical aspects of Tan and Libby [1997]’s model of auditor expertise development are that audit firms do not value tacit knowledge in inexperienced auditors but do value it in experienced auditors. We update the former and extend the latter. Our paper predicts and finds that audit firms...

Limited availability of human capital data on the internal audit function (IAF) has constrained research on this topic. This study overcomes certain data limitations by using LinkedIn data from Revelio Labs. Using longitudinal data on individual IAF employees, we document that IAF experience,...

Ensuring that firms devote sufficient resources to the reporting process is important for quality reporting. To explore the effects of resources invested in the reporting function, we use a regulatory intervention in South Korea that led to an increase in human capital invested in the reporting...

In this paper we evaluate the impact of a major school reform, that took place in the 1950s in Sweden, on educational attainment and earnings. The reform, which has many common elements with reforms in other European countries including the UK, consisted of increasing compulsor schooling,...

We examine how parental health shocks affect children's non-cognitive skills. Based on a German mother-and-child data base, we draw on significant changes in selfreported parental health as an exogenous source of health variation to identify effects on outcomes for children at ages of three and...