This study explores the association between firm innovation and loan covenant strictness. We find that lenders construct stricter contracts for firms filing more patents, consistent with lenders imposing more oversight on firms when they enter the commercialization stage after having...

We provide new insights on the value of strategic alliances from a debt financing perspective. We find that firms entering a strategic alliance receive a lower interest spread from banks that have previously lent to their strategic partners, compared to their loans from other banks. Consistent...

We examine how information disclosures from private firms affect analysts’ public firm earnings forecasts. On one hand, private firm disclosures allow analysts to better understand industry-wide business conditions, enabling them to forecast the peer public firm earnings more accurately. On...

We propose a novel measure to discern a U.S. audit partner’s individual effect on audit quality: their houses. We argue that higher house value signals the partners with better performance and more incentives to provide high-quality audits. Using a hand-collected sample of all real estate...

Using a sample of cross-country observations, we examine the impact of the implementation of country-by-country reporting (CbCr) by the European Union in 2016 on audit fees. We posit that on one hand increased tax transparency increases both firms’ demand for audit effort to better support the...