This paper studies the impact of public audit oversight on financial reporting credibility.
This paper studies the impact of public audit oversight on financial reporting credibility. We analyze changes in market responses to earnings news after public audit oversight is introduced, exploiting that the regime onset depends on fiscal year-ends, auditors, and the rollout of auditor inspections. We find that investors respond more strongly to earnings news following public audit oversight. Corroborating these findings, we find an increase in volume responses to 10-K filings after the new regime. Our results show that public audit oversight can enhance reporting credibility and that this credibility is priced in capital markets.
In recent times, there has been an unprecedented surge in national security review (NSR) measures, with host jurisdictions implementing restrictions...
The phenomenon of groups of companies is very common in modern corporate reality. The empirical data on groups of companies are heterogeneous because...
The debate on banking regulation has been dominated by flawed and misleading claims. Such claims provided the basis for poorly designed rules. Despite...