Article history: Received 27 June 2011 Received in revised form 27 February 2012 Accepted 5 March 2012 IT internal controls are an important component of an organization's arsenal of internal controls. Upon conceptualizing failures of operational IT systems, or what we call IT operational risk events, as signals of IT internal control weaknesses, we theorize about these events' impact on intern...

New regulations aimed at curbing conflicts of interests in the financial analysts’ profession have been adopted both in the US (Sarbanes-Oxley Act, Section 501) and in the European Union (Market Abuse Directive and CD2003/125). While more than 60% of the US recommendations have been shown to be potentially biased because of investment banking relationships, this proportion is as low as 2% to 8%...

This study documents a puzzling historical trend in crash risk for US-listed firms: between 1950 and 2019, the firm-year occurrences of idiosyncratic stock price crashes rose from 5.5% to an astonishing 27%. The vastness literature notoriously attributes agency reasons, i.e. self-interested executives who strategically camouflage bad news via financial reporting opacity overinvestment channels....