... that IPO firms report higher discretionary accruals when bankers and auditors are socially connected. We also document that banker-auditor social ties are associated with lower earnings credibility and worse post-IPO performance. However, auditors benefit from social connections with bankers by attracting...

...Soo Young Kwon; Han S. Yi SUMMARY Economic agents in the same social networks could either enhance contracting efficiency by reducing information asymmetry or seek rents by promoting collusive behaviors. Recent studies have provided mixed evidence of whether social ties between a chief executive...