Building on Romano's recent analysis of the United States securities regulatory regime, we model competition between professional auditing associations. We show that such competition is an effective substitute for government regulation, providing an efficient means for auditors to signal their...

This study examines some economic and organizational changes which result from the conversion of Mutual Thrift Institutions to publicly traded stock charter corporations. We focus on the relation between the initial value of the converted firm and subscription decisions by management and by...

Building on Romano's analysis of the U.S. securities regulatory regime, we model competition between professional auditing associations. We show that such competition is an effective substitute for government regulation, providing an efficient means for auditors to signal their service quality....

The purpose of this paper is to investigate the change in quality of the information environment pre- and post-Enron. We test whether the reputations of all auditors declined as a result of Enron. The impact on the market risk premium is also examined. An information processing model is...

Motivated by recently renewed criticism of the current accrual accounting model we re-examine the extent to which cash flow and accrual accounting based measures are value relevant, and capable of explaining periodic changes in the firm's market value. Using the R square as a measure of...

Motivated by the European Union (EU) decision to mandate application of the International Financial Reporting Standards (IFRS) to the consolidated financial statements of all EU listed firms (Regulation (EC) 1606/2002), starting in December 2005, we compare the value relevance of accounting...