This study provides insights on the effectiveness of the Sarbanes-Oxley Act (2002) in promoting high quality financial reporting and good corporate governance. We report the results of interviews conducted with 22 experienced directors from US firms. Our results indicate that SOX has had a...

This paper investigates the effect of different mood statesiquest;specifically positive, neutral, and negative moodiquest;on inventory valuation decisions. Psychological research suggests that different mood states can lead to different professional judgments in the performance of an ambiguous...

In March 1995, the APB in the UK issued its Statements of Auditing Standards 300 (SAS 300): 'Accounting and Internal Control Systems and Audit Risk Assessment'. The standard identifies inherent risk as one of the three components of audit risk; inherent risk being defined as 'the susceptibility...

This paper investigates the effect of different mood states - specifically positive, neutral, and negative mood - on inventory valuation decisions. Psychological research suggests that different mood states can lead to different professional judgments in the performance of an ambiguous task....

This study examines the associations between the Chief Financial Officer's (CFOs) short- and long-term compensation and discretionary current and non-current accruals. The CFO's cash bonus is used as a measure of short-term incentives and shares plus options is used as a measure of long-term...

This study explores whether managers' personal litigation risk impacts managerial empire building through the lens of their firms' cost behavior. Exploiting the staggered adoption of universal demand (UD) laws at the state-level in the U.S., we find a significant decrease in Selling, General &...

Audit markets are generally characterised as concentrated markets as the result of mergers and acquisitions among audit firms. Audit scandals around the world have raised concerns about whether concentration in the market for audit services has an adverse impact on competition and audit quality....