How can features of the markets for audit and nonaudit services (NAS) affect an audit firm's incentives to invest in audit quality, average audit quality, and social welfare? We address these questions in a model focusing on competition in both audit and NAS markets. We show that, when audit and...

This study examines whether the term of the auditor-client relationship (i.e., auditor tenure) is associated with future stock price crash risk measured both ex ante and ex post. Using a large sample of U.S. public firms with Big Four auditors, we find robust evidence that auditor tenure is...

How can features of the markets for audit and non-audit services (NAS) affect an audit firm's incentives to invest in audit quality, the price at which it offers audits, social welfare, and the effects of prohibitions on providing NAS to audit clients and generally? We address this and related...