We examine how state liability regimes within the United States affect auditor reporting decisions. We exploit variation across state-level common law in two aspects of auditor liability: the extent to which auditors can be held liable by third parties for negligence, and rules for apportioning...

We examine whether (and to what extent) accounting regulation intended to improve disclosure can lead to higher disclosure quality in the absence of a change in preparer incentives. We exploit a sequence of two similar regulatory changes, one under US GAAP and the other under IFRS, which have...