“My research is situated in the broad field of governance, financial accounting, auditing and assurance services. I focus on studying the quality of financial information which can be affected by firm managers as well as information intermediaries such as financial analysts, audit committees, auditors and oversight bodies. In turn, transparency and the quality of financial information reduce information asymmetry and affect the assessment of firm performance and firm value by users of such information, and thus can have significant implications for resource allocation efficiency in the economy.
Financial reporting quality and by extension audit quality is a high priority for regulators and standard-setters especially after the financial scandals (e.g., Enron, Worldcom, Parmalat) that marked the beginning of this millennium and the recent financial crisis. As a response, regulators have taken a number of measures in the field of financial accounting (e.g., revision of accounting standards like on fair value accounting), corporate governance (e.g., audit committees, disclosure of corporate governance practices), and auditing (e.g., audit firm governance, public oversight).
These evolutions create a number of interesting research opportunities. For example, accounting standards have economic effects, but it is not always clear whether these standards will result in the intended benefits and whether there may be unintended economic consequences. More generally, economic analysis of (planned) regulatory interventions in terms of effectiveness and efficiency is important, also for society. I believe academics have a societal role to fulfill in this regard by providing input based on insights from economic theory and related accounting and audit research for well-informed policy deliberations. Furthermore, insights from accounting and audit research are also relevant for all the parties involved in the monitoring of the quality of financial reporting in organizations. The research that I perform aims to provide a contribution in this regard. “