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作者：Johnstone, KM; Bedard, JC
作者单位：University of Wisconsin System; University of Wisconsin Madison; Northeastern University
摘要：We examine client acceptance and client continuance decisions of a large audit firm to provide empirical evidence on the extent and nature of risk avoidance that the firm uses to purposefully manage its client portfolio. Our results support several key new inferences regarding audit firm portfolio management decisions. First, the results show that this firm is shedding the riskier clients in its portfolio, consistent with the risk avoidance theory of audit firm portfolio management. Second, th...
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作者：Bens, DA; Monahan, SJ
作者单位：University of Chicago; INSEAD Business School
摘要：For a sample of U.S. firm years from 1980 through 1996 we document a positive association between the excess value of diversification as defined by Berger and Ofek [1995] and security analyst ratings of voluntary disclosure as developed by the Association for Investment Management and Research. We also examine an alternative proxy for disclosure quality that captures the degree of segment disaggregation and document a positive association between this measure and excess value. Our results are ...
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作者：Hughes, J; Liu, J; Zhang, MS
作者单位：University of California System; University of California Los Angeles
摘要：Inflation and foreign exchange raise new issues with respect to accounting representations of equity value. For example, inflation creates an earnings illusion as an artifact of the mismatching of expenses based on allocations of historical costs with current revenues in determining earnings. This mismatching distorts mappings of aggregate earnings and book values into equity value such that value-relevant information is lost. In this article we consider the consequences of inflation and forei...
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作者：Mansi, SA; Maxwell, WF; Miller, DP
作者单位：Virginia Polytechnic Institute & State University; University of Arizona; Indiana University System; Indiana University Bloomington
摘要：We examine the relation between auditor characteristics (quality and tenure) and the cost of debt financing. Consistent with the hypothesis that audit characteristics are important to the capital markets, we find that (1) auditor quality and tenure are negatively and significantly related to the cost of debt financing, (2) the relation between auditor characteristics and the cost of debt is most pronounced in firms with debt that is noninvestment grade, and (3) both the insurance and informati...
