The Chinese stock market provides a unique institutional setting to investigate empirically why listed firms voluntarily have their financial reports audited and whether auditing enhances their credibility. While auditing of interim reports is not mandatory in China except for a subset of firms...

This paper examines the incremental information content of disclosures in the 10-k reports filed with the SEC through the EDGAR system with a research design that explicitly controls for cross-sectional differences in the informativeness of current and prior disclosures. More specifically, we...

The existing literature has established the importance of industry concentration in explaining firm performance and information environments. However, little is known about whether and how industry concentration affects investors' ability to anticipate future earnings. Our study investigates...