We investigate consequences of tax-related material weaknesses in firms’ internal controls over financial reporting. We hypothesize that the presence of internal control material weaknesses (i.e., ICMWs) over the tax function makes earnings management through the income tax accrual (Dhaliwal...

We document several factors that help explain cross-sectional variations in the post-revision price drift associated with analyst forecast revisions. First, the market does not make a sufficient distinction between revisions that provide new information ("high-innovation" revisions) and...

The Financial Accounting Standards Board introduced FIN 48 (ASC 740-10) to increase relevance and comparability in the reporting of uncertain tax positions. The extant literature has found mixed results when examining if these goals have been met. Using a difference-in-differences design, we...

We investigate restatement contagion to strategic alliance partners, and we document a negative stock price reaction for non-restating firms whose alliance partners announce an accounting restatement. This contagion effect is larger when the institutional bonding between alliance partners is...