The presence of the Chief Marketing Officer (CMO) in the top management team (TMT) should translate into additional wealth creation for shareholders. Using performance attribution analysis, the authors construct a long-short portfolio that buys (sells) stocks of firms with (without) a CMO in the...

Prior research contends that financial misreporting has a spillover effect on the outcomes of peer firms within the same industry through investment decisions, information risk, and shareholder wealth. We predict and confirm a higher level of audit fees for peer firms when serious misreporting...

We obtain a novel dataset of workplace satisfaction ratings submitted by about 100,000 employees working for large public U.S. companies. We document that lower workplace ratings are associated with higher audit fees and longer audit report lags. Lower workplace ratings also increase the...

This paper investigates how auditors respond to shareholder activism against their clients. We find that activism targets pay higher audit fees and also are more likely to receive adverse internal control opinions and first-time going concern opinions. Our results suggest that the increased...

We use a novel dataset extracted from the Society of Information Management’s (SIM) survey of chief information officers (CIOs) and top information technology (IT) executives to examine organizations’ most critical IT management issues during 2014-2017 and their effect on firm profitability....

A report from the Institute of Internal Auditors finds that a majority of Fortune 500 companies systematically rotate internal auditors out of the internal audit function and into operational management (IIA 2009a). We use semi-structured interviews with 11 chief audit executives and 2 audit...

In this paper, we investigate how auditors respond to shareholder activism against their clients. Our study is important because activism may be viewed by auditors as a source of increased engagement risk, thereby impacting audit outcomes. The potential relationship between shareholder activism...