We examine whether the equity incentive heterogeneity of the executive team engenders a positive externality by curtailing stock price crash risk. Supporting this prediction, we find a negative relation between the equity incentive heterogeneity of the executive team and stock price crash risk....

In this qualitative research, we explore the deployment of electronic commerce by Canadian firms in the global marketplace, with an emphasis on the implications of e-commerce for tax planning. The business press and various governmental task forces discuss concerns created by e-commerce for...

We examine the impact of auditor choice on debt pricing in firms' early public years when they are lesser known. Our evidence suggests that retaining a Big Six auditor, which can reduce debt monitoring costs by enhancing the credibility of financial statements, enables young firms to lower their...

We examine whether auditors respond to cybersecurity risks by investing more heavily in cybersecurity human capital. Additionally, we explore auditors’ role in helping their non-breached clients in raising cybersecurity awareness and investing in cybersecurity personnel. We find that audit...

We show that the revelation of financial misrepresentation in a member firm induces stock price declines among other member firms in the same business group. The documented spillover effects are amplified (mitigated) when concerns about financial misreporting in member firms are more (less)...

Exploiting mergers between lenders and shareholders of the same firm as an exogenous shock to dual ownership, we examine the role that dual holdings (i.e., simultaneous equity and debt holding) play in shaping firms’ ex ante expected stock price crash risk evident in the options implied...

We examine the importance of audit partners’ prior non-public accounting experience (hereafter, “industry experience”) to audit outcomes. We conducted 20 (nine) semi-structured interviews of audit partners with (without) industry experience. These interviews shed light on...

Although recent evidence suggests that individual audit partners explain a substantial portion of thevariation in audit quality proxies, much less is known about what determines an audit partner’s quality. Psychology and behavioral economics theories hold that an individual’s experiences can...

Prior research documents that information transmitted via director networks affects firms’ policies and real economic activities. Given a manager’s potential monopoly over firm information, it is important to analyze whether information transmission through director social networks...

We extend research on the determinants of corporate tax avoidance to include the role of Internal Revenue Service (IRS) monitoring. Our evidence from large samples implies that U.S. public firms undertake less aggressive tax positions when tax enforcement is stricter. Reflecting its first-order...