Prior research suggests that investors behave “as if” taxable income contains information about future performance by providing evidence of a positive association between taxable income and stock returns. We draw on the fundamental analysis literature and provide direct evidence on this...

Using a sample of public firm FCPA violations, we investigate how auditors respond to FCPA risk. We find that audit fees are higher for FCPA violators beginning in the violation period with an additional increase during the period in which regulatory investigations occur. Fees exhibit a greater...

Recent studies indicate dividends are associated with higher quality earnings. Our study extends the literature by examining whether dividends' information is associated with auditors' assessment of their clients' earnings quality. Our results show that auditors charge lower fees to...

This study investigates (1) whether legitimacy management motivates audit committees to voluntarily disclose their financial reporting oversight activities in the audit committee report and if so, (2) whether such legitimacy management disclosure strategy is effective. The answer is important...

Extant literature finds mixed evidence on the association between audit market concentration and audit fees. We re-examine this issue using a large sample of U.S. audit clients covering 90 Metropolitan Statistical Areas (MSAs) spanning 2000-2013. We find that audit market concentration is...