报告一：Network Connectedness and the Spread of Audit Styles
摘要：Viewing audit teams as social groups of auditors, I utilize network analysis algorithm “n-clans” to identify clustering of CPAs, i.e., audit teams, based on individual collaboration history. Drawing upon social learning theory, I argue that team network connectedness, specifically network density and closeness, shapes the similarity in the audit style and audit pricing among team members and converges the audit behavior of each CPA to the style of the team. Exploiting a fixed-effect approach, I first validate the team construct by revealing the existence of team audit styles, which affects audit reporting, audited financial statements as well as audit fees in a significant manner. I then use the dispersion of discretionary accrual, audit reporting aggressiveness, and audit fee premium as inverse measures of audit style and audit pricing similarity, and find that highly connected teams exhibit lower within-team variation in audit outcomes and audit fees. This finding is robust to tests based on exogenous increases in network connectedness following audit firm mergers and acquisitions. Network density and closeness also strengthen the extent to which each team member’s audit outcomes and audit pricing converge to the style of the team. I extend prior literature by pointing out that audit team is a relevant unit for the analysis of audit service production and building up the link between the style of audit firm and individual auditors from a network perspective.
报告二：How Does Tax Avoidance Affect Corporate Transparency?
摘要： This study examines how tax avoidance affects corporate transparency. Using a large sample of U.S. firms from 1995 to 2016, we find a significant non-linear effect of tax avoidance on transparency. That is, when a firm’s tax avoidance is low, an increase in tax avoidance improves transparency; however, when a firm’s tax avoidance is high, an increase in tax avoidance decreases transparency. These results are robust to using alternative measures of transparency and tax avoidance and in several additional tests. Overall, the findings suggest that the effect of tax avoidance on transparency depends on the level and aggressiveness of firms’ tax avoidance behavior. Our study contributes to the literature on the economic consequences of tax avoidance.