We present a theoretical and empirical analysis of the fitness of national German (German Commercial Code - Handelsgesetzbuch (HGB)) and international (IAS and US-GAAP) accounting information, as well as European patent data to explain the market values of German manufacturing firms. For the...

We provide evidence on the long standing concern on auditor conflicts of interest from providing non-audit services (NAS) to audit clients by using rarely explored NAS fee data from 1978-80 Using this earlier setting, we find cross-sectional evidence of improved earnings quality when auditors...

I argue that external financial reporting quality has at best a 2nd order effect on firm value of U.S. publicly traded companies and that attempts to improve a firm's external reporting quality has a 3rd order effect on these firms' value. Recognizing that external financial reporting quality is...

We examine the valuation of financial statement note information at the time of 10-K filings. We find that stock returns around 10-K filings are positively related to accounting adjustments calculated from financial statement note information. We further document that the likelihood of equity...

I use a sample of 409 companies that restate their earnings in 1997-2001 to examine penalties for outside directors, particularly audit committee members, when their companies experience accounting restatements. Penalties from lawsuits and Securities Exchange Commission (SEC) actions are...

The main objective of this study was to analyze the pattern of accounting events that signals error in audited financial statements and resulted in restatement in Brazil during the periods of 2000-2009. The study which is characterized as interpretative, borrows a leaf from the contexts studied...

This research explores the use of control rhetoric in CEO letters between the pre and post Sarbanes Oxley periods and examines financial statement users' perception of internal controls and company performance from the CEO letter. We compare the amount of control rhetoric included in CEO letters...

International Accounting Standard (IAS) 1 – Presentation of Financial Statements contradicts International Accounting Standards Board (IASB) Conceptual Framework on the users of financial statements. IASB Conceptual Framework is superior to all international accounting standards and clearly...

The term “audit style” is used to characterize the unique set of internal working rules of each Big 4 audit firm for the implementation of auditing standards, and the enforcement of GAAP within their clienteles. Audit style implies that two companies audited by the same Big 4 auditor,...

We examine the impact of information processing costs on firm-level investment efficiency by exploiting the SEC's eXtensible Business Reporting Language (XBRL) mandate as a natural experiment. To the extent that XBRL adoption reduces information processing costs and enhances the external...