We investigate whether auditors exercise closer monitoring and thus charge higher fees in response to debt covenant violations. Using a hand-collected sample focusing on initial covenant violations, we document that audit fees experience an average increase of about 20 percent in the year...

We investigate whether covenant violations function as information mechanisms that lead to the external auditor either exercising closer monitoring or opting to exit. Such responses are expected based on interactive stakeholder monitoring and reaction as described in Triantis and Daniels (1995)....

Previous research on the effect of board characteristics mostly examines established firms. This raises the question of whether the findings from the board characteristics literature are applicable to rapidly growing enterprises, as their corporate governance landscape can be very different from...

A fundamental role of financial reporting is to provide information useful in forecasting future cash flows. Applying up-to-date time series modelling techniques, this study provides direct evidence on the usefulness of quarterly data in predicting future operating cash flows. Moreover, we show...