Accounting

Working Paper

Addressing the Auditor Independence Puzzle: Regulatory Models and Proposal for Reform

Auditors play a major role in corporate governance and capital markets. Ex ante, auditors facilitate firms’ access to finance by fostering trust among public investors. Ex post, auditors can prevent misbehavior and prevent financial fraud by...Read more

Martin Gelter
Aurelio Gurrea-Martinez
14 December 2019

The Effect of Regulatory Harmonization on Cross-border Labor Migration:Evidence from the Accounting Profession

The paper examines whether international regulatory harmonization increases cross-border labor migration. To study this question, we analyze European Union (EU) initiatives that harmonized accounting and auditing standards. Regulatory...Read more

Christian Leuz
14 December 2019

The Economics of Disclosure and Financial Reporting Regulation: Evidence and Suggestions for Future Research

This paper discusses the empirical literature on the economic consequences of disclosure and financial reporting regulation, drawing on U.S. and international evidence. Given the policy relevance of research on regulation, we highlight the...Read more

Christian Leuz
14 December 2019

Do Managers Successfully Shop for Compliant Auditors? Evidence from Accounting Estimates

Existing research on opinion shopping focuses primarily on managers’ attempts to switch auditors in order to avoid the receipt of an unfavorable audit opinion. We extend this literature by examining whether managers successfully shop for auditors...Read more

Mark DeFond
Jieying Zhang
Yuping Zhao
14 December 2019

Accounting for Financial Stability: Lessons from the Financial Crisis and Future Challenges

This paper investigates what we can learn from the financial crisis about the link between accounting and financial stability. The picture that emerges ten years after the crisis is substantially different from the picture that dominated the...Read more

Jannis Bischof
Christian Laux
Christian Leuz
14 December 2019

Adoption of CSR and Sustainability Reporting Standards: Economic Analysis and Review

This study provides an economic analysis of the determinants and consequences of corporate social responsibility (CSR) and sustainability reporting. To frame our analysis, we consider a widespread mandatory adoption of CSR reporting standards in...Read more

Luzi Hail
Christian Leuz
14 December 2019

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