Section 404 of the Sarbanes-Oxley Act requires managers to assess, and their auditors to express an opinion on, the effectiveness of internal controls over financial reporting (ICFR). Policymakers expect the ICFR audits to enhance the credibility of firms' financial statements. Prior research...

In this paper, we examine the effect of corporate ownership on information asymmetry measured by bid-ask spread in the emerging markets of China. We find that government ownership has significant and positive impacts on bid-ask spread during the period of 1995-2000 which disappears afterward...

Our study examines whether CPA firms take measures to improve their audit quality and restore trust among investors when their reputations are in danger subsequent to disciplinary actions by the government regulatory agencies in China. Compared with a control group of the CPA firms without a...

In this paper, I investigate the association between increased accounting disclosures and bid-ask spreads in an emerging market (China). I hypothesize that the implementation of new auditing standards in emerging markets would result in increased disclosures and a subsequent reduction in...

In this paper we investigate the impact of cross-listings on information asymmetry risk, the cost of capital and firm value of a group of cross-listed Chinese companies. Our paper is the first to examine the effect of cross-listing on information asymmetry risk. Because cross-listed firms are...

In this paper, we investigate the market reaction to the disclosure of critical audit matters (CAM) in terms of trading volumes and the effect of cross-listings on such a reaction in the emerging markets of China. We find that the first time CAM disclosures increase auditor report's value as...

Post-SOX (Sarbanes–Oxley Act) academic research on internal control focuses on the characteristics of publicly listed companies disclosing material control weaknesses or the consequences experienced by these companies. However, to date, limited research has empirically examined whether these...

We investigate the changes in the value relevance of accounting information among Chinese firms over the past two decades, during which accounting reforms are launched to provide decision makers with increased disclosure and higher quality financial information. We also investigate the factors...

Drawing on herding behavior theory, prior studies regarding the use of peers for investment decisions and compensation practices and the recent reports which suggest that firms use peer information for audit pricing, we examine the effect of peer groups on the audit pricing process of a sample...

Exploiting a unique setting in China where internal controls are intended to manage risks, we investigate how internal controls shape the cash holding policies. Results show that firms with higher internal control quality (ICQ) are less likely to have abnormal cash holdings, either excess or...