John S. Hughes

TL;DR: In this paper, the authors propose a model in which audited reports are valuable to entrepreneurs who have private information and seek to share risks with investors, where the choice of auditor and the resulting audited report provide partial information about the entrepreneur's private information, and he resolves all remaining investor uncertainty by signalling with retained ownership.

TL;DR: In this article, the authors consider the effects of private signals that are informative of both systematic factors and idiosyncratic shocks affecting asset payoffs in a competitive, noisy, rational expectations setting, and show that risk premiums equal products of betas and factor risk premiums, irrespective of information asymmetries.

TL;DR: In this paper, the authors examined whether the earnings quality factor is priced and whether insider trading is more profitable for firms with higher exposure to that factor, and they found evidence consistent with pricing of the factor and insiders trading more profitably in firms with high exposure to it.

TL;DR: In this article, the authors report empirical tests of an hypothesized positive relation between audit quality and firm-specific risk that is predicted by Datar, Feltham, and Hughes' (1991) theoretical analysis of auditor choice when firms go public.

TL;DR: In this article, the authors suggest that the various economies mirrored by financial markets are not perfectly integrated and that investors may not actually be diversifying internationally and thus forego advantages which would accrue to them if they were willing to hold foreign security issues.