Anecdotal evidence suggests that the resignation of a top executive increases a firm's likelihood of failure. When auditors perceive an increased likelihood of failure, a going concern modified audit opinion is issued. This study tests the relationship between top management resignations and the...

I study an important accounting consequence—financial misstatements—of CFO outside board membership. I find that firms with CFOs holding outside directorships have a lower likelihood of misstatements. These results likely reflect the benefits accruing to CFOs' home firms in terms of improved...

Recent accounting research examines the impact of the individual style of corporate decision-makers on corporate accounting policies. Based on this line of research, we explore how a chief financial officer's (CFO) preference for accounting conservatism affects accounting quality. We provide...

Auditors and clients are often required to resolve difficult, complex accounting issues in which they have different views. This resolution entails a negotiation process where research has shown that the strategies employed have dramatic effects on the process, final agreed upon outcome, and the...

Although the financial statements of an organization are considered a product of management, prior research suggests that a company's financial statements may be affected by the negotiation strategy employed by the auditor when resolving audit differences with management. However, little...