Using the Miles & Snow (1978, 2003) strategy typology and a measure of strategy based on Bentley, Omar, & Sharp (2013) and Ittner, Larcker, & Rajan (1997), we investigate whether business strategy is associated with the quality of reported earnings. Our sample comprises 44,264 firm-year...

We investigate the impact of the initiations of national audit inspection programs on firm-specific stock crash risk in 38 countries worldwide. The staggered commencement of the inspection regimes in different countries allows us to identify the causal effect of audit quality on crash risk. We...

Examining a set of firms from 46 countries, we explore whether busy independent directors, CEOs and audit committees effectively monitor corporate financial reporting. We find that firms with a higher proportion of busy independent directors or busy CEOs more extensively manage their earnings....

When equity markets open to foreign investors, firms in these markets face significant opportunities to attract foreign capital. Using a set of countries that opened their equity markets, we find significant income-increasing earnings management in the year of opening, with substantial...

At the peak of the financial crisis in October 2008, the IASB amended IAS 39 to grant companies the option of abandoning fair value recognition for selected financial assets. Using a comprehensive global sample of publicly listed IFRS banks, we find that banks use the reclassification option to...

Academic research on loan loss provisioning and the earlier incurred credit losses (ICL) model has a long tradition in the literature. Academic criticism of the ICL was taken up by the Financial Stability Board after the financial crisis of 2018, leading to a fundamental revision of accounting...

We investigate the relationship between the transparency of loan loss provision disclosures and the provisioning practices of privately held banks. We study a unique change in disclosure regulation under German banking law which introduces mandatory disclosures of loan loss provisions. Using...

Since the formation of the International Accounting Standards Board (IASB), the use of International Financial Reporting Standards (IFRS) has spread and they have become global standards for financial reporting. However, they are not used unanimously all over the world. This paper focuses on...

Using a large sample of firms that report under mandatory IFRS from 51 countries, this study examines the association between conditional conservatism, institutional quality, and Big 4 audits. We hypothesize and find that the degree of conditional conservatism is higher in countries with better...