This study examines the association between government contracts and firms' use of trade credit. Firms with government contracts may demand less trade credit because of their lower operational risk, higher firm performance, stronger capacity to generate internal funds, and better access to other...

The purpose of this study is to examine how external auditors react to clients' earnings management through classification shifting. It draws on the argument that auditors perceive earnings management as a reflection of managers' opportunism and potential litigation risk. Using audit fees, audit...

The debate concerning the recent regulation in the United States mandating accounting firms to disclose engagement partners' identity is ongoing. We examine the impact of the Public Company Accounting Oversight Board's (PCAOB) requirement of disclosing engagement partners' names on Form AP on...

By using a pilot license as a proxy for the sensation-seeking personality trait, we examine the relation between sensation-seeking CEOs and trade credit. With a sample of pilot CEOs and non-pilot CEOs from U.S. listed firms from 1993-2016, we find strong evidence that firms led by pilot CEOs are...

This paper investigates the impact of political corruption on auditor behavior in the United States. We find that U.S. firms headquartered in more corrupt regions pay higher audit fees, have longer audit report lags, and are more likely to receive a going concern audit opinion. Political...

Chief executive officers (CEOs) could use tax avoidance to reduce costs and hence increase firm profits. Nevertheless, the reputation of the firm could be harmed. Prior studies find that firms’ tax avoidance is associated with CEOs’ personality traits. We attempt to predict firms’...

This study examines how auditors react to clients’ engagement in classification shifting which refers to the intentional misallocation of line items within the income statement. We find that classification shifting is positively associated with audit fees, audit report lags, the issuance of a...

This study examines the association between corporate site visits and visited firms’ financial reporting quality. Using a sample of publicly listed firms in China for the years 2009 through 2018 and four different measures of financial reporting quality, we find that firms receiving more site...

This paper is the first to study the relation between financial restatements and restatement firms’ demand for trade credit as a source of financing. Using a sample of U.S.- listed firms for the 2000–2016 period, we find that restatement firms tend to use more trade credit in the year...

Purpose - This study examines the influence of the readability of annual reports on firms' ability to obtain trade credit from suppliers. Particularly, we conjecture that annual report readability helps firms obtain more trade credit from suppliers.Design/methodology/approach - We use the...