The spillover effect of public firm audit regulation on private firm auditing: Evidence from common partners

Journal of Accounting and Economics · 2025-12-15

Follow the Money: Are Severe Weather Events Value Relevant?

Research Square · 2025-01-22 · 1 citations

Follow the Money: Are Severe Weather Events Value Relevant?

SSRN Electronic Journal · 2025-01-01

Estimating the Value of Auditing Services for Private Firms

SSRN Electronic Journal · 2025-01-01 · 1 citations

Cash Substitution and Deferred Consumption as Data-Breach Harms

The Journal of Legal Studies · 2025-06-01 · 1 citations

Federal courts are divided over whether consumers whose data are obtained in a breach suffer an injury in fact that gives them standing to sue under Article III of the US Constitution. Judicial opinions find no constitutional standing in a narrow majority of such cases, and plaintiffs are likely to lose absent causal links to subsequent identity theft or the disclosure of embarrassing information. Our paper identifies a novel injury that results from data breaches. Upon learning about local data breaches, consumers immediately and temporarily reduce their purchases and shift from credit card purchases to cash transactions. After a data breach, many consumers forgo the benefits of a short-term loan from their credit card issuer, cash-back benefits, and other perks associated with card purchases. In light of our empirical results, the standing barrier that has thwarted so many data-breach suits in federal court may be easily surmounted.

Mandatory CSR Disclosures and Real Asset Regulatory Leakage

SSRN Electronic Journal · 2025-01-01 · 2 citations

Financial Statement Audits and Data Breaches

Management Science · 2024-11-01 · 5 citations

Financial statement audits for public companies require auditors to test the internal controls over the client’s information systems that are material to the financial reporting process. Given the increasingly integrated nature of corporate data and control systems, a standard audit may have a positive effect on client firms’ other information systems, such as those that help prevent data breaches. In this paper, I provide evidence on whether and how auditors help prevent data breaches. Using plausibly exogenous improvements in auditing due to regulatory inspections and auditors’ cross-client learning, I find a decreased likelihood of data breaches among these auditors’ clients. Institutional insights gathered from interviews with accounting firm partners and industry professionals suggest two mechanisms for the role of auditors in preventing data breaches: the provision of relevant information and incentives for internal controls. Collectively, the findings provide evidence that improving accounting information systems can have a positive impact on nonaccounting systems. This paper was accepted by Ranjani Krishnan, accounting. Funding: I gratefully acknowledge financial support from Columbia Business School, the University of Chicago Booth School of Business, the Deloitte Foundation, and the Bradley Fellowship awarded by the Stigler Center for the Study of the Economy and the State. Supplemental Material: The data files are available at https://doi.org/10.1287/mnsc.2023.01357 .

Cash Substitution and Deferred Consumption as Data Breach Harms

SSRN Electronic Journal · 2024-01-01 · 1 citations

How Do Multiple Regulators Regulate? Evidence from Fairness Opinion Providers' Conflict of Interest Disclosures

SSRN Electronic Journal · 2024-01-01

ESG Ratings of ESG Index Providers

SSRN Electronic Journal · 2023 · 18 citations

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