This paper examines how the effect of the audit partner on accounting estimates varies across the tenure of a partner/client relationship. Using confidential data on audit partner identity in the banking industry, we find that banks systematically report higher loan loss reserves (LLRs) at the...

We exploit a regulatory change to examine whether bank regulator strictness is affected when regulators no longer rely on external assurance. In the absence of external assurance, we find that banks report higher nonaccrual loans, higher troubled debt restructurings, and both a timelier loan...

We examine whether delays in the expected release of annual earnings have implications for the future auditor-client relationship. Managers have strong incentives to release earnings on schedule and auditors play an important role in helping their clients avoid costly earnings announcement...

Research suggests that greater earnings disaggregation in financial statements leads to favorable market outcomes. This perspective is based on a presumption that the disaggregation separates earnings components with heterogeneous characteristics. We hypothesize that the disaggregation of...

In this study, we examine how intense scrutiny over financial reporting controls affects operating control outcomes. Increasing emphasis on internal controls over financial reporting (ICFR) might require firms to modify resource allocations within control systems, such that the quality of...