We demonstrate that investors in initial public offering (IPO) firms value revenues and that IPO managers report revenues opportunistically in the fiscal year just prior to the offer. We also find that these pre-IPO firm financial statements are more likely to be subsequently restated. Our...

Purpose: The purpose of this study is to examine whether the timing of auditor terminations signals the riskiness of client firms. Design/methodology/approach: This empirical study uses a sample of auditor switches during 2003-2014 to conduct univariate tests and multivariate regression...

The Tax Cuts and Jobs Act of 2017 (TCJA) introduced two major changes that may influence the structure of executive compensation: (1) reducing corporate tax rates from 35 to 21 percent and (2) eliminating the performance-based pay exception in Section 162(m). These changes provide incentives to...