This paper responds to recent questions posed by PCAOB regarding how to more effectively utilize fraud risk assessments … in the audit process. It examines the effects of explicitly integrating fraud risk assessments into auditors' judgments … of the risk of material misstatement (RMM). Specifically, I test the impact on auditors' risk assessments and planning …

The paper investigates the role of CEO's equity and risk incentives in boosting securitization in the financial … industry and in motivating executives to reduce the perceived risk while betting on it. Using a sample of US financial … securitization transactions to a larger extent than CEOs with low incentives. We also show that CEOs with high equity and risk …

valuation model where uncertainty, in particular, bankruptcy risk, is explicitly included. At the end of each year, there is a … also contains a discussion of where the bankruptcy risk is concealed in traditional firm valuation. The good news is that … bankruptcy risk can actually be included in traditional firm valuation, at least approximately, by forecasting expected growth …

the risk surrounding a firm's fundamental value. We find that the spread in analysts' state-contingent valuations captures … fundamentals. Similarly, asymmetry embedded in the analysts' scenario-based valuations conveys information about asymmetric risk … in fundamentals. The results confirm that analysts' valuations reflect both state-contingent risk assessments and non …

's financial opacity and its stock crash risk. I find that overvalued firms tend to use more earnings management (higher financial … addition, I show that overvalued firms have higher crash risk than otherwise identical but non-overvalued firms. At last, I …

This paper examines whether managers strategically time their earnings forecasts (MEFs) as litigation risk increases …. We find as litigation risk increases, the propensity to release a delayed forecast until after the market is closed (AMC …

I investigate whether information quality affects the cost of equity capital through liquidity risk. Liquidity risk is … the importance of this systematic risk. I find that higher information quality is associated with lower liquidity risk and … association between information quality and liquidity risk is stronger in times of large shocks to market liquidity …

This study develops and validates an ex-ante measure of firm-specific overall tax risk. We define tax risk as the … outcomes that are different from expectations. Tax risk arises from the interaction of economic risk and tax law uncertainty …. An ex-ante measure of firm-specific tax risk allows us to classify firms as pursuing a more or less risky tax strategy …

To date, there is only meager research evidence on the usefulness of mandatory annual report risk disclosures to … shareholders, we do not know whether investors benefit from high-quality risk reporting in a highly regulated risk disclosure … environment. In this paper, we performed association tests to examine whether the quality of firms' mandatory risk disclosures …