This paper provides evidence that tournaments motivate analysts to behave boldly and that tournament incentives can be perverse. Controlling for forecast accuracy, analysts making bold forecasts are more likely to win the tournaments measured by moving to prestigious brokerages or being named as...

Abstract: This study examines the externalities of mandatory IFRS adoption on firms' investment efficiency in 17 European countries. Using the ROA difference between the firm and its peers to proxy for the information on the peers' investment performance, we find that the spillover effect of a...

This study examines the externalities of mandatory IFRS adoption on firms' investment efficiency in 17 European countries. Using the ROA difference between the firm and its peers to proxy for the information on the peers' investment performance, we find that the spillover effect of a firm's ROA...

We find that the adjustments to net income resulting from mandatory 2005 adoption of IFRS in Europe are relevant to investors in financial as well as non-financial firms. However, we find differences in value relevance of the aggregate net income adjustment and adjustments relating to several...

By employing a Heckman two-stage selection model, we identify whether employing a financial expert with or without accounting expertise on the audit committee is optimal and how earnings quality varies across these optimal and suboptimal choices. Using four earnings quality measures...

This study investigates whether effective audit committees influence the association between management earnings forecasts and the properties of analysts‟ forecasts. We posit that this influence on the part of an audit committee would likely result from increased responsibility for monitoring...

This study investigates why auditors leave public accounting and the consequences of auditor departures. We find that audit competency is negatively associated with a departure decision. Specifically, audit partners and managers, as well as auditors generating more audit revenues and providing...

Permanent or long-term large shareholders have different governance incentives and mechanisms from institutional investors. Liquidity could facilitate either cutting and running by large shareholders or, alternatively, increased monitoring. Using an exogenous shock to liquidity in China, we...

We investigate whether accounting expertise on audit committees curtails expectations management to avoid negative earnings surprises. Controlling for the endogenous choice of an accounting expert, we find that firms with an accounting expert serving on the audit committee exhibit: (1) less...