Following Cohen and Zarowin (2010), this study examines management's choices between alternative earnings management mechanisms applied to a specific corporate finance event. Specifically, this study examines the tradeoff between accrual-based earnings management (AEM) and real activities...

The need for efficient corporate governance mechanisms, to restore the public's trust in U.S. financial markets, increased after the latest round of corporate fraud cases that wiped out $8 trillion from the US market. Proponents of efficient governance argue that current mechanisms need...

We examine the association between audit-committee expertise and asymmetric information in the U.S. equity market. Using precise private information extracted from a decomposed bid-ask spread, we find that the existence of an audit committee with financial expertise is negatively associated with...

The main thesis of our study is to provide a comprehensive review on the disclosure of Internal Control Weaknesses (ICWs) reported under the Sarbanes-Oxley Act of 2002. More specifically, we classify research on ICWs into three main streams: (1) antecedents, (2) characteristics and (3)...

We examine the association between disclosure of internal control deficiencies (ICDs) and information asymmetry (IA) in the U.S. secondary loan market. We also investigate which types of ICDs intensify or mitigate conditions of information asymmetry in the same market. Relying on loan...

Offshoring of accounting processes has become a common business practice, pursued by firms to reduce costs and focus on core competencies. However, our understanding about internal controls of these offshored processes is limited. Grounded in theory that is supported by prior literature and...

Using accruals as a proxy for financial reporting quality, Peni and Vahamaa (2010) and Barua, Davidson, Rama, and Thiruvadi (2010) provide evidence that female Chief Financial Officers (CFOs) are more moral than male CFOs. Using 2,048 U.S. firm-year propensity score matching samples from...

Bitcoin is a digital asset that was first mined in January 2009 after the global financial crisis of 2007-2008. Over a decade later, there is still no consensus across different market regulations on the classification, use cases, policies, and economic implications of bitcoin. However, there is...

In the past, corporate governance was an important control mechanism for maintaining the accountability of management and directors of an organization. However, the value of strong corporate governance has assumed a critical role in organizations since recent highly publicized business failures...

I investigate the impact of voluntary adoption of clawback provisions on managerial ability. The U.S. Securities and Exchange Commission (SEC, 2003) describes the adoption of clawback through the Sarbanes-Oxley Act (SOX) Section 304 as an action to improve the “tone at the top”. In line with...