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  1. Reputational Implications for Partners After a Major Audit Failure: Evidence from China.Xianjie He, Jeffrey Pittman & Oliver Rui - 2016 - Journal of Business Ethics 138 (4):703-722.
    We analyze whether audit partners suffered damage to their professional reputations with the demise of Zhongtianqin, formerly the largest audit firm in China, after an audit failure enabled a major client, Yinguangxia, to fraudulently exaggerate its earnings in a high-profile scandal resembling the Andersen–Enron events in the US. This involves evaluating whether the reputational damage sustained by partners implicated in the scandal spreads to other partners in the same audit firm. We isolate whether impaired reputation impedes partners who were not (...)
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  • StoneRidge Investment Partners v. Scientific Atlanta: A Test of Auditor Litigation Risk.Anna Bergman Brown, Nicole M. Heron, Hagit Levy & Emanuel Zur - 2023 - Journal of Business Ethics 187 (3):517-538.
    This paper examines the effects of a decrease in auditor litigation risk in a setting that isolates a change in auditor litigation risk from changes in auditor reputation. _StoneRidge Investment Partners v. Scientific Atlanta_ is a 2008 U.S. Supreme Court ruling that restricted secondary actor liability in class action suits, resulting in a decrease in class actions that listed auditors as defendants. We document that the _StoneRidge_ decision is associated with a negative CAR for clients of Big 4 auditors and (...)
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