The paper examines whether international regulatory harmonization increases cross-border labor migration. To study this question, we analyze European Union (EU) initiatives that harmonized accounting and auditing standards. Regulatory harmonization should reduce economic mobility barriers,...

Die Implementierung umfassender Kontrollmechanismen und die in gleicher Weise effektive wie effiziente Überwachung von Kontrollen stellt für Unternehmen heute eine gleichermaßen aktuelle wie dringliche Herausforderung dar. Durch den Umfang der heutigen IT-Unterstützung der Geschäftsprozesse...

This paper analytically investigates the credibility of managerial forecast disclosure introducing a game theoretic perspective by extracting robust implications from disclosure models.

Serafeim [2011] examines the determinants and economic consequences of embedded value (EV) reporting, a voluntary disclosure arrangement in the life insurance industry. He finds substantial reductions in bid-ask spreads for EV reporting firms, and links the occurrence of this disclosure practice...

This paper examines possible differences in auditors' performance when they make belief based versus probability-based risk assessments by focusing on two phases of the financial statement audit process: the assessment of two attributes of audit evidence (‘strength' and ‘direction') and the...

This paper reviews recent advances from the institutional economics and accounting literatures to help build a nascent framework for ‘new institutional accounting' (NIA) research. The framework has five basic elements: (i) institutional structure (formal versus informal); (ii) level of...

Earnings management erodes the usefulness of financial statements, because the typical result of cooking the books is the occurrence of earnings bubble that bursts sooner or later, causing stock price to dive. This paper explores the presence of earnings management in the case of companies...

Earnings manipulations are often revealed with significant lag. This usually entails dramatic share price' slide. Therefore investors should avoid/buy stocks with low/high earnings-quality. However, given the shortcomings of auditing, using this strategy requires application of the other (then...

Utilizing the Finnish setting, this paper examines the association between industry specialization of an individual audit partner and the quality of earnings reported for privately-held companies. Rules in Finland require that the name(s) of the audit engagement partner(s) appear in audit...

I discuss Minnis (2011) in the context of the broader literature on private firm financing. In particular, I focus on the unique features of the private firm setting and how it affects research design and inference. I detail the alternative information sources available to debt financiers of...