Download or read book Essays on Accounting, Capital Structure, and Risk Management written by Bjorn Nybo Jorgensen and published by . This book was released on 1999 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The second essay develops a model in which debt holders and equity holders can sue the auditor. This thesis shows that expanding auditors' liability may cause underinvestment by the audited firm. The essay demonstrates that the underinvestment effect may be mitigated by adopting alternative liability regimes or by changing auditor selection procedures.