Capitalizing on a unique setting in China where auditors disclose their prosocial activities, we examine the role that auditor social responsibility (ASR) plays in shaping their performance. In one direction, the behavior consistency theory implies that individual auditors exhibiting more social...

This study investigates the effect of corporate hedging on stock price crash risk. We test two competing hypotheses. Under the transparency hypothesis, hedging reduces a firm's information asymmetry and lowers crash risk. Under the opacity hypothesis, hedging decreases financial reporting...

We find empirical evidence that clients' real activities manipulation (RAM) varies across individual auditors. More specifically, both audit-firm and individual-auditor fixed effects on RAM are significant; yet only the latter remain significant in regressions including auditors' propensity to...

Using data from 43 markets around the world, we document that firms with larger goodwill balances have a higher stock price crash risk in future years. The positive association between goodwill balances and future crash risk is stronger for firms with weaker incentives to provide transparent...