We investigate the interaction of debt covenants and tax reporting upon the adoption of a financial accounting standard that codifies disclosures for income tax risks, Financial Interpretation No. 48 (FIN 48). We examine how firms respond to the potential tightening of covenant slack upon FIN 48...

The purpose of this study is to analyze the potential benefits that firms realize from implementing technology specifically aimed at monitoring and assuring the effectiveness of their internal control systems. As asserted by the Committee of Sponsoring Organizations of the Treadway Commission...

This paper examines the moderating effects of firm and IT characteristics on the market reaction to IT investment announcements. A special emphasis has been placed on the potential interaction effects of these two types of variables, since the previous event studies have paid limited attention...

We examine the market reaction to a sample of 403 restatements announced from 1995 to 1999. We document an average abnormal return of about -9 percent over a two-day announcement window. We find that more negative returns are associated with restatements involving fraud, affecting more accounts,...

Previous research has shown that investments in intangible assets, especially research and development, can increase the difficulty in forecasting a company's earnings. This information risk translates into a lower market value for the firm. Because IT investments have many intangible...

Firms depend on information technology to provide high quality internal information, but prior research suggests that IT is underutilized. Prior research suggests that when CEOs have experience with IT, then IT is more likely to be accepted throughout their firms. We take these arguments a step...