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Full-Text Articles in Business
Auditor Industry Specialization, Board Governance, And Earnings Management, Jerry Sun, Guoping Liu
Auditor Industry Specialization, Board Governance, And Earnings Management, Jerry Sun, Guoping Liu
Odette School of Business Publications
No abstract provided.
Industry Specialist Auditors, Outsider Directors, And Financial Analysts, Jerry Sun, Guoping Liu
Industry Specialist Auditors, Outsider Directors, And Financial Analysts, Jerry Sun, Guoping Liu
Odette School of Business Publications
This study investigates the relationships among industry specialist auditors, outside directors, and financial analysts. Specifically, we examine the effect of analyst coverage on the association between auditor industry specialization and outside directorship. We find that outside directors are less likely to hire industry specialist auditors for firms with high analyst coverage than for firms with low analyst coverage. Our findings suggest that analyst coverage moderates outside directors' demand for industry specialist auditors, that is, financial analysts may compete with industry specialist auditors to some extent in monitoring financial reporting process.
Does Female Directorship On Independent Audit Committees Constrain Earnings Management?, Jerry Sun, Guoping Liu, George Lan
Does Female Directorship On Independent Audit Committees Constrain Earnings Management?, Jerry Sun, Guoping Liu, George Lan
Odette School of Business Publications
This study examines whether the gender of the directors on fully independent audit committees affects the ability of the committees in constraining earnings management and thus their effectiveness in overseeing the financial reporting process. Using a sample of 525 firm-year observations over the period 2003 to 2005, we are unable to identify an association between the proportion of female directors on audit committees and the extent of earnings management.
Client-Specific Litigation Risk And Audit Quality Differentiation, Jerry Sun, Guoping Liu
Client-Specific Litigation Risk And Audit Quality Differentiation, Jerry Sun, Guoping Liu
Odette School of Business Publications
The purpose of this paper is to examine whether client-specific litigation risk affects the audit quality differentiation between Big N and non-Big N auditors. Specifically, the authors examine whether higher quality audits of Big N auditors relative to non-Big auditors is more pronounced for clients with high litigation risk than for clients with low litigation risk. The authors develop the hypothesis based on auditors' potential monetary and reputational losses, collect the data of US listed companies from the Compustat and CRSP databases, and conduct regression analyses. The authors find that the higher effectiveness of Big N auditors over non-Big N …