Firms with internal control weakness (ICW) problems are less likely to provide managers with timely and precise information required for adjusting internal resources. The real options theory implies that managers in ICW firms, faced with information uncertainty, are more likely to postpone...

We investigate whether and how the market for corporate control affects the demand for audit service in a cross-country setting. In so doing, we exploit the staggered enactments of merger and acquisition (M&A) laws as an exogenous shock that substantially increases takeover pressure. We find...

This study investigates whether and how the information values of reported earnings and their components changed around the Asian financial crisis of 1997-1998. Regression analyses on a sample of 10,406 firm-years from nine Asian countries from 1995 to 2000 reveal the following. First, the...

This study investigates the role of earnings and cash flows in equity valuation under severe uncertainty about firm fundamentals. We hypothesize that the valuation weight on cash flows (earnings) increases (decreases) with the degree of fundamental uncertainty because earnings, which include...

This study investigates whether and how the information values of reported earnings and their components changed around the Asian financial crisis of 1997-1998. Regression analyses on a sample of 10,406 firm-years from nine Asian countries from 1995 to 2000 reveal the following. First, the...