-
作者：Francis, Jere R.; Wang, Wei
作者单位：Maastricht University; University of Technology Sydney; Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University
摘要：We show that when banks and borrowers share the same audit firm, borrowers receive lower interest rates, after controlling for potentially confounding director connectedness. The common auditor effect is observed only for opaque borrowers, and is greatest when the same audit engagement office audits the bank and borrower. A common auditor connection also matters more for longer-tenured auditors, for geographically proximate borrowers, and when the syndicate involves fewer lenders. The effect d...
-
作者：Chen, Gary; Judd, J. Scott; Pandit, Shailendra (Shail)
作者单位：University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital
摘要：Relationships with major customers may be advantageous to suppliers due to economies of scale and reputational benefits. In this study, we investigate whether unionization leads to disruptions in a firm's relationships with its customers. Our goal is to provide insights regarding the impact unionization has on a firm's sales relationships with its major customers. We predict that major customers will shift purchases away from suppliers that unionize to avoid potential disruptions. Using a diff...
-
作者：Iselin, Michael; Liao, Scott; Zhang, Haiwen (Helen)
作者单位：University of Minnesota System; University of Minnesota Twin Cities; University of Toronto
摘要：We examine whether bank connections via common mutual fund ownership serve as a contagion channel affecting the systemic risk of the banking system. Examining this relation is important because common mutual fund ownership has increased dramatically over the past 20 years, and a buildup of systemic risk was at the heart of the 2008-2009 financial crisis. We predict and document that the extent of a bank's connection with other banks via common ownership increases its contribution to systemic r...
-
作者：Aghazadeh, Sanaz; Dodgson, Mary Kate; Kang, Yoon Ju; Peytcheva, Marietta
作者单位：Louisiana State University System; Louisiana State University; Northeastern University; University of Massachusetts System; University of Massachusetts Amherst; Lehigh University
摘要：National office consultations (NOCs) are a mechanism intended to enhance audit quality, consistent with the logic of professionalism inherent in the audit profession. Yet research indicates that the competing logic of commercialism has become institutionalized in audit firms. We examine how the coexisting and conflicting logics of professionalism and commercialism manifest themselves in the current NOC dynamic. Specifically, we interview 22 highly experienced Big 4 audit firm partners to inves...
-
作者：Bae, Gil S.; Choi, Seung U. K.; Lamoreaux, Phillip T.; Lee, Jae E.
作者单位：Korea University; Kyung Hee University; Arizona State University; Arizona State University-Tempe; Hongik University
摘要：We examine the relation between low-quality internal controls and audit fee premiums. Using a novel data set of audit hours and audit fees we find, consistent with the audit risk model, that auditors increase their effort (hours) owing to low internal control quality. We find that auditorsalsocharge a significant fee premium to clients with internal control weaknesses. This premium is observed for severe internal control weaknesses and companies with low-quality alternative governance mechanis...
-
作者：Ke, Ruihao; Li, Meng; Zhang, Yuan
作者单位：Southern Methodist University; University of Texas System; University of Texas Dallas
摘要：Boards of directors play their role in corporate governance by advising and/or monitoring managers. In the corporate disclosure literature, prior research has documented directors' monitoring role, yet empirical evidence on directors' advising role is limited. Since the advising role often entails information transfer, we examine directors who concurrently serve as directors or executives in the firms' related industries (DRIs) and hence possess valuable information about the firms' external o...
-
作者：Lamoreaux, Phillip T.; Mauler, Landon M.; Newton, Nathan J.
作者单位：Arizona State University; Arizona State University-Tempe; State University System of Florida; Florida State University
摘要：This study investigates the relation between audit regulation and cost of equity capital. There is scant empirical evidence on this relation because changes in audit regulation are frequently accompanied by other major regulatory changes. We exploit variation in the timing of regulatory changes induced by foreign governments' staggered allowance of PCAOB inspections. Using a difference-in-differences design, we find that foreign SEC registrants with auditors from countries that allow PCAOB ins...
-
作者：Alderman, Jillian; Jollineau, S. Jane
作者单位：Pepperdine University; University of San Diego
摘要：This study examines whether the perceived independence and financial expertise of audit committee members affect external auditors' exposure to legal liability. We use an experiment in which potential jurors make judgments about auditor independence and legal liability for a case involving an audit failure. We find that perceptions of audit committee independence from management are positively associated with judgments of auditor independence and negatively associated with auditor liability. H...
-
作者：Dhaliwal, Dan; Michas, Paul N.; Naiker, Vic; Sharma, Divesh
作者单位：University of Arizona; University of Melbourne; University System of Georgia; Kennesaw State University
摘要：In this study, we predict and provide evidence that distressed firms that rely more heavily on major customers for sales have a comparatively higher incidence of receiving going-concern opinions (GCOs). Moreover, we find that the effect of increased reliance on major customers is driven by firms that are more distressed. We also theorize that variations in key characteristics of the relationship between a distressed firm and its largest major customer are incrementally linked to GCOs, and pres...
-
作者：Joshi, Preetika; Outslay, Edmund; Persson, Anh; Shevlin, Terry; Venkat, Aruhn
作者单位：York University - Canada; Michigan State University; University of Illinois System; University of Illinois Urbana-Champaign; University of California System; University of California Irvine
摘要：In this study, we examine the effect of increased tax transparency on the tax planning behavior of European banks. In 2014, the European Union introduced public country-by-country reporting requirements to the banking industry. Treating this new requirement as an exogenous shock, we find limited evidence consistent with a decline in income shifting by the banks' financial affiliates in the post-adoption period (starting from 2015). We do not, however, find robust evidence of a significant chan...
