September 15, 2026 | 11:00 am ET

The Class Pay Gap in Public Accounting: Does Socioeconomic Background Matter?

Abstract: We examine whether there is a class pay gap in the auditing profession. We explore this question using 20 years of unique administrative data in Sweden, an egalitarian society and top-ranked meritocracy. We document a significant income disparity across all professional levels within Big 6 firms between auditors from higher-and lower-socioeconomic backgrounds (SEB), with the gap peaking at the partner level. We explore two potential underlying mechanisms: differential performance and workplace segregation. While we find no evidence that high-SEB auditors deliver higher quality audits, we find robust evidence of substantial workplace segregation. Higher-SEB CPAs manage larger portfolios and more prestigious clients (indicating horizontal segregation), and are more likely to qualify as CPAs, reach partnership, and join Big 6 boards (indicating vertical segregation). Beyond these disparities in economic and professional achievements, class-based inequality also appears to take a toll on mental health: we find that auditors from lower-SEB backgrounds are significantly more likely to be diagnosed with depression, suggesting that the psychological burdens of the profession fall disproportionately on those from less privileged origins. Collectively, these findings challenge the meritocratic narrative of public accounting and serve as a call to action for audit firms to ensure equal opportunity and address systemic class-based inequalities.

October 13, 2026 | 11:00 ET

Some Thoughts on International Accounting Research

Speaker:  Ray Ball, University of Chicago

Abstract: This essay discusses some thoughts that emerged from looking back on three decades of researching international accounting. First, and most obviously, the literature has grown substantially in volume and in sophistication over that time. Second, for good reason there has been a tendency to focus on international differences, especially but not entirely before the advent of International Financial Reporting Standards (IFRS), whereas among market economies there are fundamental similarities that make the differences seem comparatively superficial. Third, accounting is an institution that has evolved in countries jointly with their firms and markets, the implication being that it is not possible to identify separate effects on aggregate welfare of innovations in accounting and innovations in complementary institutions. The essay is a brief "thought piece," not an overview like my previous article in this journal [Ball (2016)]. It is a personal reflection that draws heavily on my own research and consequently-as already will be evident from the previous sentence-it contains an immodestly large number of self citations.

November 17, 2026 | 11:00 am ET

Government Agencies’ Demand for Audit Quality: Evidence from Government Audit Procurement

Speaker: Matthew Ege, Texas A&M University

Abstract: We examine government agencies’ audit firm selections when procuring financial audit services. Using a sample of 2,760 financial audit contracts across 17 European countries and a staggered difference-in-differences design, we find that government agencies are more likely to contract with audit firms that receive PCAOB inspection reports with more deficient audits. This tendency is more pronounced in countries with greater illegal diversion of public funds and weaker accountability mechanisms, but does not vary with budgetary constraints, consistent with results being driven by opportunism rather than cost-savings incentives. In supply-side tests, we do not find evidence consistent with audit firms seeking to replace lost public company audits with government audits. These findings suggest that, in low-accountability environments, government agencies may deliberately select lower-quality auditors to reduce the likelihood of detection and disclosure of illegal or ineffective use of public funds.

December 1, 2026 | 11:00 am ET

Carbon Pricing and Investment Efficiency: Global Evidence

Speaker: Alexander Edwards, University of Toronto

Abstract: We examine the effects of carbon pricing, in the form of carbon taxes (CTs) and Emissions Trading Systems (ETSs), on firms’ capital and labor investment decisions and the efficiency with which these productive inputs are allocated. Using a novel catalogue of 56 carbon pricing interventions and firm-level data from 93 countries over 1996–2022, we find that carbon pricing increases capital investment but reduces capital investment efficiency, whereas firms reduce labor investment without a corresponding deterioration in labor investment efficiency. The timing of these adjustments also differs: capital investment responds primarily after policy implementation, while labor investment exhibits anticipatory adjustment, particularly following carbon-tax announcements. The sequence of policy adoption also matters, with labor adjustments intensifying when an ETS is introduced after an existing CT and carbon taxes playing a particularly important role in capital investment and efficiency. Overall, carbon pricing induces distinct adjustments across firms' productive inputs, with different implications for their allocation efficiency.

January 19, 2027 | 11:00 am ET

How Do U.S. Multinationals Navigate the Global Minimum Tax?

Speaker: Kaitlyn Kroeger, University of Iowa

Abstract: We examine how U.S. multinationals respond to the introduction of the Global Minimum Tax. Using various data sources, we document strategic responses by firms to mitigate the impact of the Global Minimum Tax. First, corporate disclosures indicate increasing recognition of the Global Minimum Tax but emphasize uncertainty. Second, exploiting historical ownership data and the EU's adoption of Pillar Two, we show that U.S. multinationals are significantly more likely than European multinationals to restructure ownership chains to avoid exposure to the Global Minimum Tax. Further, we show that U.S. multinationals with tax haven exposure do not experience any detectable increase in effective tax rates. Finally, we conduct a survey of U.S. tax directors to gather perceptions of the Global Minimum Tax and provide context for our empirical findings. Overall, our findings highlight how strategic organizational adjustments by U.S. multinationals and tax policy design by low-tax countries substantially attenuate the intended effects of the Global Minimum Tax.

February 16, 2027 | 11:00 am ET

Multinationals' Responses to Anti-Base Erosion and Profit Shifting Policies: Evidence from Tax Returns

Speaker: Harald Amberger, WU Vienna University of Economics and Business

Abstract: Using Austrian administrative corporate tax return data, we examine how MNEs respond to three major anti-base erosion and profit shifting (anti-BEPS) policies: (i) interest and royalty deduction limitations, (ii) private Country-by-Country Reporting (CbCR), and (iii) controlled foreign corporation (CFC) rules. We find that limits on interest and royalty deductions curb income shifting out of Austria, with little evidence that exposed MNE entities substitute into alternative shifting channels. In contrast, private CbCR largely offsets these effects, while also incentivizing MNEs to increase economic activity in foreign low-tax affiliates. Exposure to the CFC rule similarly leads MNEs to increase economic activity abroad and continue income shifting, consistent with efforts to qualify for active income safe harbors under the Austrian regime. Overall, our evidence suggests that anti-BEPS measures have differential effects. Some measures effectively constrain income shifting, whereas others primarily induce real economic responses without reducing the extent of income shifting.

March 16, 2027 | 11:00 am ET

Unveiling Government Disclosures: Evidence from Government Transparency on Terrorist Attacks

Speaker: Pietro Bonetti, IESE Business School

Abstract: This paper examines the trade-offs and consequences of governments' disclosures of private information about public security threats. Using a hand-collected database of government disclosures of foiled terrorist attacks in European countries, we find that governments' disclosure decisions trade off losses for the country's economy with electoral benefits. We document significant reductions in economic activity after the disclosure of foiled terrorist attacks as measured by lower foreign tourist flows to disclosing countries. We further document that government disclosures of foiled terrorist attacks are associated with increased voting intentions for far-right/anti-immigration parties. A battery of additional tests including IV analyses corroborate our inferences. Cross-sectional analyses further show stronger effects on the hospitality industry when media coverage of terrorist attacks is greater or anti-immigration sentiment is stronger in originating countries, and on support for far-right/anti-immigration parties when these factors are stronger in the disclosing country. Overall, our findings provide evidence on the trade-offs shaping government disclosures of public security threats and their impact on economic activity and public opinion.

April 13, 2027 | 11:00 am ET

Corporate Emissions Targets as Demand Signals for Supply Chain Coordination

Speaker: Shirley Lu, Harvard Business School

Abstract: We examine whether corporate emissions reduction targets influence investment in climate solutions beyond the announcing firm. We hypothesize that emissions targets can function as forward-looking demand signals, shaping suppliers' expectations about future procurement needs for low-carbon inputs and technologies. Using granular supply-chain data and controlling for industry time trends, we find that suppliers increase their climate solution activity following emissions target announcements by their direct customers. The results are directionally stronger when the customer relationship is more economically important and when suppliers face greater uncertainty. Notably, supplier responses remain statistically positive even for targets with limited ex-ante credibility, consistent with the cheap talk equilibria in which costless signals remain informative when sender and receiver preferences are sufficiently aligned. To address endogeneity and capture broader spillovers, we implement a Bartik-style instrumental variable strategy that combines country-level climate concern with supplier-industry exposure to countries through customer-industries, and find evidence that targets influence supplier investment beyond directly linked customer-supplier relationships. These findings suggest that corporate emissions targets can generate market-wide demand signals that reallocate investments toward climate solutions.