Following large-scale auditor consolidations in the late 1980s and early 1990s, along with Arthur Andersen's collapse in 2001, the global audit market has become highly concentrated during the past 30 years. Many interested parties, including regulators, researchers, and practitioners, disagree...

We examine the impact of social capital in local communities on corporate disclosure of proprietary information. Firms located in communities with higher social capital care more about the collective interests of the local communities. While the disclosure of proprietary information has the...

We study optimal team design. In our model, a principal assigns either heterogeneous agents to a team (a diverse team) or homogenous agents to a team (a specialized team) to perform repeated team production. We assume that specialized teams exhibit a productive substitutability (e.g.,...

Conventional wisdom suggests that partner identification disclosure can improve audit quality, because it may enhance transparency and individual accountability. Building on a two-period assignment model, we show that under certain conditions, the disclosure can distort partner client assignment...

We study optimal team design (homogenous vs. diverse assignment) and explicit contracting in a setting with multiple agents who have possibly diverse demographic characteristics captured by their discount factors. When the agents have relatively small discount factors, the contract is designed...