Purpose: This study aims to examine the effect of real activities manipulation (RAM) on auditors’ decision of issuing going concern (GC) opinions for distressed companies. Design/methodology/approach: This study estimates and examines three types of RAM: reduction of discretionary expenses,...

This study examines the association between the political corruption of a local government and the readability of firms' annual reports. Based on a sample of 12,742 firm-year observations (for 2,369 unique firms) during the 2006-2014 period and the Gunning Fog Index as the primary measure of...

Our study examines whether political corruption of a local government at judicial district level influences earnings management activities of firms located in a corrupt area. Prior studies suggest that there is an association between political connections and earnings quality (e.g., Braam et al....

This study examines the effect of real activities manipulation (RAM) on auditors' decision of issuing going concern opinions for financially distressed companies. It draws on the theory that auditors perceive RAM as a potential litigation risk and a signal of client firms using other earnings...