Dividend taxation is an important component of investors’ taxes and has attracted the attention of policymakers and financial economists. However, the theory of dividends and the reform of dividend taxation remain a puzzle. This paper analyzes the effect of dividend taxation on firms’...

In this study, we examine the effects of the transformation of accounting firms’ organizational form on audit quality. We find that the transformation from limited liability to limited liability partnerships has a significant negative effect on the absolute value of discretionary accruals of...

Dividend taxation is an important component of investors' taxes and has attracted the attention of policymakers and financial economists. However, the theory of dividends and the reform of dividend taxation remain a puzzle. This paper analyzes the effect of dividend taxation on firms' dividend...

In this study, we examine the effects of the transformation of accounting firms' organizational form on audit quality. We find that the transformation from limited liability to limited liability partnerships has a significant negative effect on the absolute value of discretionary accruals of...

Audit firms face conflicting incentives. On one hand, they are motivated to provide high quality audits in order to protect their reputations and avoid regulatory sanctions but, on the other hand, they also need to please their clients in order to increase their revenues. We argue that these...

Audit firms need to provide high quality audits but they also need to please their clients. We argue that these conflicting incentives become manifest when comparing the incentive effects of equity ownership on engagement quality (EQ) reviewers and audit engagement partners. We predict that EQ...