Regulators around the world are concerned about the potentially harmful effects of high audit market concentration on audit pricing and quality. However, results in the overall literature have failed to reach consensus on this issue. We contribute to this debate by arguing that the audit market...

We contribute to the emerging literature on component auditor usage by building a dataset at the level of individual foreign subsidiaries of U.S. multinational audit clients. In contrast to extant research that studies component auditor usage only at the parent level, we measure audit quality at...

Over the past several decades, the scope of public companies' operations has become increasingly global. This has led to concern over the ability of audit firms to conduct high-quality audits across geographically dispersed foreign operations. We contribute to the growing body of research in...

We hypothesize and find that financial reporting quality at the foreign subsidiaries of US multinational corporations (MNCs) is higher when the MNC’s principal auditor engages a component auditor to audit the foreign subsidiary on its behalf. An important innovation of this study is that we...

Over the past several decades, the scope of public companies' operations has become increasingly global. This has led to concern over the ability of audit firms to conduct high-quality audits across geographically dispersed foreign operations. We contribute to the growing body of research in...

Purpose: This study aims to examine whether the pay gap between the chief executive officer (CEO) and non-executive employees affects the firm’s research and development (R&D) efficiency. Design/methodology/approach: The dependent variable is the firm’s R&D efficiency, defined as a...

This study examines the role of the local auditor office in the comparability and quality of their clients' earnings. I construct of sample of firm-pairs in which each observation consists of two firms in the same industry-year. Accounting comparability is inferred by the closeness of total...