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作者：Chen, Shimin; Sun, Sunny Y. J.; Wu, Donghui
作者单位：Hong Kong Polytechnic University
摘要：This study examines how the legal and regulatory changes in China affect the relationship between client economic importance and audit quality. At the individual auditor level, we find that the propensity to issue modified audit opinions (MAOs) is negatively correlated with client importance from 1995 to 2000. However, from 2001 to 2004, when the institutional environment became more investor-friendly, the propensity to issue MAOs is positively associated with client importance. These findings...
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作者：Bamber, Linda Smith; Jiang, John (Xuefeng); Petroni, Kathy R.; Wang, Isabel Yanyan
作者单位：University System of Georgia; University of Georgia; Michigan State University
摘要：Firms can report comprehensive income in either an income-statement-like performance statement or the statement of equity. Traditional theories of contracting incentives cannot explain this reporting location choice that only affects where comprehensive income data appear, because the contractible values of net income, other comprehensive income items, and comprehensive income are exactly the same regardless of the location where the firm reports comprehensive income. Drawing on theory, analys...
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作者：Bamber, Linda Smith; Hui, Kai Wai; Yeung, P. Eric
作者单位：University System of Georgia; University of Georgia; Hong Kong University of Science & Technology
摘要：Nearly half of managers' forecasts of annual earnings per share (EPS) end in nickel intervals, whereas only about 20 percent of actual EPS end in nickel intervals. We provide evidence on the attributes, determinants, and consequences of this systematic wedge between managers' predictions and firms' ex post actual performance. Managers' nickel forecasts are not simply a benign response to uncertainty about up-coming earnings, because nickel forecasts are not only less accurate, but also they ar...
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作者：Laux, Volker; Newman, D. Paul
作者单位：University of Texas System; University of Texas Austin
摘要：The accounting profession has raised concerns that excessive liability exposure renders audit firms unwilling to provide audit services to risky clients, limiting the prospective clients' ability to raise external capital. We address this concern in a model in which the auditor evaluates the riskiness of the client before accepting the client engagement. We consider a setting in which a shift to stricter legal liability regimes not only increases the expected damage payments from the auditor t...
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作者：D'Souza, Julia M.; Ramesh, K.; Shen, Min
作者单位：Cornell University; Michigan State University; George Mason University
摘要：This study examines the interdependence between institutional ownership and the speed with which Standard & Poor's disseminates corporate accounting information. From the demand-side perspective, we find that quasi-indexers, who rely on corporate accounting information as a low-cost monitoring system, are the key driver of the institutional demand for speedy information dissemination. In addition, dissemination speed increases substantially for stocks listed in major market indices but decreas...
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作者：Leone, Andrew J.; Liu, Michelle
作者单位：University of Miami; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
摘要：This study tests the hypothesis that founder CEOs are less likely to be fired than non-founder CEOs when accounting irregularities are disclosed. We also examine whether CFOs are more likely to shoulder the blame when the CEO is a founder. Using a sample of 96 newly public firms with accounting irregularities, and a control sample of similar newly public firms, we document that the probability of CEO (CFO) turnover in the wake of an accounting irregularity is lower (higher) when the firm's CEO...
