... investigate the relation between PCAOB inspection oversight and real earnings management, a potentially value-destroying activity. We exploit the staggered timing of foreign governments’ allowance of PCAOB inspections in a generalized difference-in-differences design and find that companies engage in greater...

...Benjamin P. Commerford; Dana R. Hermanson; Richard W. Houston; Michael F. Peters SUMMARY Real earnings management (REM) is an increasingly common method of manipulating financial results, yet little research examines auditors' perceptions of and responses to REM. Using the auditor comfort...