This paper presents some empirical evidence on the covered interest parity and a dynamic GARCH model to gauge the degree of capital mobility and its volatility in seven East Asia economies. The results show that Hong Kong and Singapore have fairly mobile capital markets while the other economies...

This paper investigates empirically the feasibility of creating a currency union in East Asia following closer monetary cooperations in recent years. Relying on a four-variable structural VAR model, we identify various types of shocks in nine East Asian economies, with nine European Monetary...

In modern economies, technological knowledge can flow between firms through various channels. We test an economic theory that firms most likely to benefit from such knowledge flows disclose information about their technologies more readily, probably to attract technologically compatible...

We examine whether the readability of financial statement footnotes in the annual report is informative about audit engagement risk. Using various readability measures, we predict and find that firms with less readable footnotes have longer audit report lag, incur higher audit fees, and are more...

The increase in disclosure about the persons conducting audits has led to a steep rise in research examining the role that individual audit partners play in audit outcomes. Although recent evidence suggests that individual audit partners explain a substantial portion of the variation in audit...

This paper examines the effect of information technologies on stock price crash risk. Information technology advancements change the way firm-specific information is disseminated and acquired, providing significant benefits to investors. We use the required staggered implementation of the SEC's...

The article investigates to what extent various underlying macro (oil, supply, demand and portfolio) shocks impact the fluctuations of Japanese stock prices by developing a multivariate structural vector autoregression (SVAR) model. The results from a Markov regime-switching (MS) specification...

Firms rely on trade secret protections to preserve intellectual property. Using a stylized model, we argue that financial disclosure and trade secret protection are complements: firms release higher quality financial information when trade secret protection is stronger. We find empirical support...

This study investigates whether auditors' independence was compromised by client audit fee pressures during the recession of December 2007 through June 2009. We hypothesize that clients able to extract fee concessions from auditors during the recession, when audit risk increased, might also have...

Prior research argues that one reason firms engage in corporate spinoffs is to increase firm value by reducing information asymmetry with shareholders (the “information hypothesis”). However, the literature has yet to identify a mechanism through which this reduction in information asymmetry...