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- Audit quality (4)
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- Abnormal audit fees (1)
- Accrual quality (1)
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- Auditor reputation (1)
- Auditor specialization (1)
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- Conservatism ratio (1)
- Conservatism special items (1)
- Corporate financial statements (1)
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Articles 1 - 27 of 27
Full-Text Articles in Business
Why 'Democracy' And 'Drifter' Firms Can Have Abnormal Returns: The Joint Importance Of Corporate Governance And Abnormal Accruals In Separating Winners From Losers, Koon Boon Kee
Research Collection School Of Accountancy
No abstract provided.
Stock Return Synchronicity And Technical Trading Rules, Koon Boon Kee
Stock Return Synchronicity And Technical Trading Rules, Koon Boon Kee
Research Collection School Of Accountancy
No abstract provided.
Comments On Ed Deferred Tax: Recovery Of Underlying Assets, Pearl Tan
Comments On Ed Deferred Tax: Recovery Of Underlying Assets, Pearl Tan
Research Collection School Of Accountancy
No abstract provided.
Do Abnormally High Audit Fees Impair Audit Quality?, Jong-Hag Choi, Jeong-Bon Kim, Yoonseok Zang
Do Abnormally High Audit Fees Impair Audit Quality?, Jong-Hag Choi, Jeong-Bon Kim, Yoonseok Zang
Research Collection School Of Accountancy
This study examines whether and how audit quality proxied by the magnitude of absolute discretionary accruals is associated with abnormal audit fees, that is, the difference between actual audit fee and the expected, normal level of audit fee. The results of various regressions reveal that the association between the two is asymmetric, depending on the sign of the abnormal audit fee. For observations with negative abnormal audit fees, there is no significant association between audit quality and abnormal audit fee. In contrast, abnormal audit fees are negatively associated with audit quality for observations with positive abnormal audit fees. Our findings …
Auditor Reputation And Earnings Management: International Evidence From The Banking Industry, Kanagaretnam Kiridaran, Chee Yeow Lim, Gerald J. Lobo
Auditor Reputation And Earnings Management: International Evidence From The Banking Industry, Kanagaretnam Kiridaran, Chee Yeow Lim, Gerald J. Lobo
Research Collection School Of Accountancy
We examine the relation between auditor reputation and earnings management in banks using a sample of banks from 29 countries. In particular, we examine the implications of two aspects of auditor reputation, auditor type and auditor industry specialization, for earnings management in banks. We find that both auditor type and auditor industry specialization moderate benchmark-beating (loss-avoidance and just-meeting-or-beating prior year’s earnings) behavior in banks. In addition, we find that once auditor type and auditor industry specialization are included in the same tests, only auditor industry specialization has a significant impact on constraining benchmark-beating behavior. In separate tests related to income-increasing …
Corporate Governance And Mindfulness: The Impact Of Management Accounting Systems Change, John Joseph Williams, Alfred E. Seaman
Corporate Governance And Mindfulness: The Impact Of Management Accounting Systems Change, John Joseph Williams, Alfred E. Seaman
Research Collection School Of Accountancy
The International Federation of Accountants (2009) argues that a governance structure should go beyond conformance with regulations and equally support a performance dimension that can lead to better outcomes. This paper explores the relationship between these two governance dimensions and the capacity for mindfulness, utilizing organizational theory that describes high reliability organizations. Survey data was obtained from top-level accounting professionals in a sample of 124 Canadian firms. Regression results support the hypothesis that both the conformance and performance dimensions of governance are significant determinants of the capacity for mindfulness. Additional analysis shows that the explanatory power of this relationship persists …
Does Auditor Tenure Improve Audit Quality? Moderating Effects Of Industry Specialization And Fee Dependence, Chee Yeow Lim, Hun-Tong Tan
Does Auditor Tenure Improve Audit Quality? Moderating Effects Of Industry Specialization And Fee Dependence, Chee Yeow Lim, Hun-Tong Tan
Research Collection School Of Accountancy
We investigate whether the relation between auditor tenure and audit quality is conditional on auditor specialization and fee dependence. Although prior studies have investigated the relation between extended auditor-client tenure and audit quality, none has examined how this relation is jointly influenced by both auditor specialization and fee dependence. Our main analyses, using accrual quality as a measure of audit quality, show that firms audited by specialists (vs. non-specialists) have relatively higher audit quality with extended auditor tenure, and that this relation is negatively moderated by auditors’ fee dependence on clients. These results are robust to sensitivity tests, and alternative …
National Culture And Capital Structure Decisions: Evidence From Foreign Joint Ventures In China, Kai Li, Dale W. Griffin, Heng Yue, Longkai Zhao
National Culture And Capital Structure Decisions: Evidence From Foreign Joint Ventures In China, Kai Li, Dale W. Griffin, Heng Yue, Longkai Zhao
Research Collection School Of Accountancy
We investigate the role of firms’ country of origin in financial leverage decisions using data on foreign joint ventures in China. We hypothesize that national culture enters the joint optimization process leading to foreign joint ventures’ leverage decisions and that it affects leverage decisions both directly and indirectly. Using cultural values of mastery and embeddedness to explain country of origin effects, we find that mastery has negative and significant direct effects on foreign joint ventures’ leverage and short-term debt decisions, and a positive and significant direct effect on the likelihood of foreign joint ventures’ having long-term debt. The indirect effects …
Contagion Effect Of Restatements Through Common Directorships, Chih-Ying Chen, Beng Wee Goh
Contagion Effect Of Restatements Through Common Directorships, Chih-Ying Chen, Beng Wee Goh
Research Collection School Of Accountancy
No abstract provided.
Stock Return Synchronicity And Technical Trading Rules, Koon Boon Kee, Qihui Chen
Stock Return Synchronicity And Technical Trading Rules, Koon Boon Kee, Qihui Chen
Research Collection School Of Accountancy
No abstract provided.
Comments On Ed Financial Instruments: Fair Value Option For Financial Liabilities, Tan, Pearl Hock-Neo
Comments On Ed Financial Instruments: Fair Value Option For Financial Liabilities, Tan, Pearl Hock-Neo
Research Collection School Of Accountancy
No abstract provided.
The Association Between Accounting Students' Lone Wolf Tendencies And Their Perceptions, Preferences And Performance Outcomes In Team Projects, Premila Gowri-Shankar, Jean Lin Seow
The Association Between Accounting Students' Lone Wolf Tendencies And Their Perceptions, Preferences And Performance Outcomes In Team Projects, Premila Gowri-Shankar, Jean Lin Seow
Research Collection School Of Accountancy
In this study we examine the association between accounting students’ lone wolf tendencies and their perceptions of the usefulness of team work, team interaction behaviors, and team performance. While prior studies find that students generally perceive positive benefits from engaging in team work, our study finds that students with greater lone wolf tendencies perceive fewer benefits from engaging in team work. We also find that during team interactions, teams with a greater proportion of students with higher lone wolf tendencies experience less team commitment and team leadership. Further, such teams rate the outcome of their project negatively, although, there is …
Comments On Ed Financial Instruments: Amortized Cost And Impairment, Tan, Pearl Hock-Neo
Comments On Ed Financial Instruments: Amortized Cost And Impairment, Tan, Pearl Hock-Neo
Research Collection School Of Accountancy
No abstract provided.
The Roles That Forecast Surprise And Forecast Error Play In Determining Management Forecast Precision, Jong-Hag Choi, Linda A. Myers, Yoonseok Zang, David A. Ziebart
The Roles That Forecast Surprise And Forecast Error Play In Determining Management Forecast Precision, Jong-Hag Choi, Linda A. Myers, Yoonseok Zang, David A. Ziebart
Research Collection School Of Accountancy
Studying the determinants of management forecast precision is important because a better understanding of the factors affecting management’s choice of forecast precision can provide investors and other users with cues about the characteristics of the information contained in the forecasts. In addition, as regulators assess the regulation of voluntary management disclosures, they need to better understand how managers choose among forecast precision disclosure alternatives. Using 16,872 management earnings forecasts collected from 1995 through 2004, we provide strong evidence that forecast precision is negatively associated with the magnitude of the forecast surprise and that this negative association is stronger when the …
Audit Fees: To Disclose Or Not To Disclose?, Teng Aun Khoo, Soo Chiat Hwang
Audit Fees: To Disclose Or Not To Disclose?, Teng Aun Khoo, Soo Chiat Hwang
Research Collection School Of Accountancy
The authors argue that the disclosure of audit fees can provide a more level playing field in Singapore, and would also be consistent with the other major capital markets in the world. Auditors' independence is the cornerstone of the auditing profession, because without auditor's independence investors would not be able to rely on the so-called "audited" financial statements. Currently in Singapore, audit-fee disclosure is not mandatory except for banks as stipulated by the Monetary Authority of Singapore (MAS).
Direct And Indirect Effects Of Internal Control Weakness And External Audit Effort On Accruals Quality: Evidence From A Unique Canadian Regulatory Setting, Hai Lu, Gordon D Richardson, Steven Salterio
Direct And Indirect Effects Of Internal Control Weakness And External Audit Effort On Accruals Quality: Evidence From A Unique Canadian Regulatory Setting, Hai Lu, Gordon D Richardson, Steven Salterio
Research Collection School Of Accountancy
Public disclosure about effectiveness of internal control systems is subject to much controversy in Canada, resulting in Canadian disclosures being made in Management Discussion and Analysis (MD&A). These disclosures are provided to investors without a definition of the weaknesses to be reported, without implementation effectiveness testing, no direct management certification and no external audit of such disclosures. Though the cost of such SOX North disclosures are lower than in the U.S setting, the credibility of these disclosures is far from assured, posing an important empirical issue for regulators interested in the cost versus benefit trade-off of various disclosure regimes. We …
The Effect Of Internal Control Weakness Under Section 404 Of The Sarbanes-Oxley Act On Audit Fees, Jong-Hag Choi, Jeong-Bon Kim, Soo Young Kwon, Yoonseok Zang
The Effect Of Internal Control Weakness Under Section 404 Of The Sarbanes-Oxley Act On Audit Fees, Jong-Hag Choi, Jeong-Bon Kim, Soo Young Kwon, Yoonseok Zang
Research Collection School Of Accountancy
In this paper, we investigate the effect of the enactment of the SarbanesOxleyAct (SOX) in 2002 on audit pricing, using a sample of 252 firms that received an “Ineffective” audit opinion and other firms that received cleanaudit opinion on the effectiveness of the internal control over financial reportingunder Section 404 of SOX. Our analyses show the following. First,we find that auditors charge significantly higher audit fees for all firms inthe post-SOX period than in the pre-SOX period. Second, we find that auditors’opinions on the weakness in internal control (WIC) are positively associatedwith audit fees, and that the positive association between …
Audit Office Size, Audit Quality And Audit Pricing, Jong-Hag Choi, Francis Kim, Jeong-Bon Kim, Yoonseok Zang
Audit Office Size, Audit Quality And Audit Pricing, Jong-Hag Choi, Francis Kim, Jeong-Bon Kim, Yoonseok Zang
Research Collection School Of Accountancy
Using a large sample of U.S. audit client firms over the period 2000-2005, this paper investigates whether and how the size of a local practice office within an audit firm (henceforth, office size) is a significant, engagement-specific factor determining audit quality and audit fees over and beyond audit firm size at the national level and auditor industry leadership at the city or office level. For our empirical tests, audit quality is measured by unsigned abnormal accruals, and the office size is measured in two different ways: one based on the number of audit clients in each office and the other …
Comments On Ed Measurement Of Liabilities In Ias 37, Pearl Tan
Comments On Ed Measurement Of Liabilities In Ias 37, Pearl Tan
Research Collection School Of Accountancy
No abstract provided.
On The Relationship Between Analyst Reports And Corporate Disclosures: Exploring The Roles Of Information Discovery And Interpretation, Xia Chen, Qiang Cheng, Kin Lo
On The Relationship Between Analyst Reports And Corporate Disclosures: Exploring The Roles Of Information Discovery And Interpretation, Xia Chen, Qiang Cheng, Kin Lo
Research Collection School Of Accountancy
We examine the relationship between analyst research and corporate earnings announcements to explore the relative importance of information discovery versus interpretation of previously released information. Using equity market reaction to capture information content, we find that information discovery (interpretation) dominates in the week before (after) firms announce their earnings. In addition, we find that the interpretation role increases in importance with the difficulty of financial accounting information. Analysis of all weeks surrounding earnings announcements shows that the information discovery role is overall more important. We are able to reconcile this result with the opposite finding in Francis et al. (2002).
Corporate Governance, Investor Protection, And Auditor Choice In Emerging Markets, Mahmud Hossain, Chee Yeow Lim, Patricia Mui Siang Tan
Corporate Governance, Investor Protection, And Auditor Choice In Emerging Markets, Mahmud Hossain, Chee Yeow Lim, Patricia Mui Siang Tan
Research Collection School Of Accountancy
In this study, we examine the effect of firm-level governance on the firm's choice of an external auditor. Further, we test how the relation between corporate governance and auditor choice may be affected by the strength of legal environment. The results show that firm-level governance scores are positively related to the firm's auditor choice. This association is strengthened by country-level legal protection. Specifically, the positive association between auditor choice and the firm-level governance scores is weaker (stronger) in a low (high) legal environment. These findings are robust after controlling for determinants that were found to be significant in earlier research. …
The Pricing Of Conservative Accounting And The Measurement Of Conservatism At The Firm-Year Level, Dan Segal, Jeffrey L. Callen, Ole-Kristian Hope
The Pricing Of Conservative Accounting And The Measurement Of Conservatism At The Firm-Year Level, Dan Segal, Jeffrey L. Callen, Ole-Kristian Hope
Research Collection School Of Accountancy
This paper analyzes the relation between equity prices and conditional conservatism and introduces a new measure of conservatism at the firm-year level. We show that the asymmetric properties of conservative accounting, the existence of non-accounting sources of information, and the properties of GAAP related to special items combine to generate a nonlinear relation between unexpected equity returns and earnings news (the shock to expected current and future earnings). Based on this model, we construct a conservatism ratio (CR) defined as the ratio of the current earnings shock to earnings news. CR measures the proportion of the total shock to expected …
Audit Market Concentration And Audit Quality, Sanjay Kallapur, Srinivasan Sankaraguruswamy, Yoonseok Zang
Audit Market Concentration And Audit Quality, Sanjay Kallapur, Srinivasan Sankaraguruswamy, Yoonseok Zang
Research Collection School Of Accountancy
Policymakers and regulators have been concerned about the impact of audit market concentration resulting from decline in the number of audit firms due to mergers and the demise of Arthur Andersen. In this paper we find a positive association between audit market concentration (Herfindahl index) at the MSA level and audit quality (measured by discretionary accruals and the Dechow-Dichev (2002) measure of accrual quality). We control for fixed year effects, therefore our results are unlikely to be affected by the increase in concentration due to Andersen’s demise contemporaneous with an increase in audit quality because of regulatory measures such as …
Moral Hazard, Firms’ Internal Governance And Management Earnings Forecasts, Jimmy Lee
Moral Hazard, Firms’ Internal Governance And Management Earnings Forecasts, Jimmy Lee
Research Collection School Of Accountancy
This paper investigates the role of management earnings forecasts in mitigating information asymmetry between investors andmanagers relating to moral hazard, and explains how earnings guidance facilitates monitoring. I demonstrate that firms that are more susceptible to moral hazard problems and more difficult to monitor are also more likely to issue annual earningsforecasts and they do so more frequently. In addition, I examine how firm internal governance drives forecasting decisions andshow that stronger board governance and managerial equity incentives are associated with higher likelihood and frequency of forecast issuance. Finally, I provide robust evidence that managerial equity incentives are associated with …
Are Family Firms More Tax Aggressive Than Non-Family Firms?, Shuping Chen, Xia Chen, Qiang Cheng, Terry Shevlin
Are Family Firms More Tax Aggressive Than Non-Family Firms?, Shuping Chen, Xia Chen, Qiang Cheng, Terry Shevlin
Research Collection School Of Accountancy
Taxes represent a significant cost to the firm and shareholders, and it is generally expected that shareholders prefer tax aggressiveness. However, this argument ignores potential non-tax costs that can accompany tax aggressiveness, especially those arising from agency problems. Firms owned/run by founding family members are characterized by a unique agency conflict between dominant and small shareholders. Using multiple measures to capture tax aggressiveness and founding family presence, we find that family firms are less tax aggressive than their non-family counterparts, ceteris paribus. This result suggests that family owners are willing to forgo tax benefits to avoid the non-tax cost of …
Understanding Analysts Forecasts, R. J. Louth, P. Joos, S. E. Satchell, Guy Weyns
Understanding Analysts Forecasts, R. J. Louth, P. Joos, S. E. Satchell, Guy Weyns
Research Collection School Of Accountancy
The purpose of this paper is to model analysts’ forecasts. The paper differs from the previous research in that we do not focus on how accurate these predictions may be. Accuracy may indeed be an important quality but we argue instead that another equally important aspect of the analysts’ job is to predict and describe the impact of jump events. In effect, the analysts’ role is one of scenario prediction. Using a Bayesian-inspired generalised method of moments estimation procedure, we use this notion of scenario prediction combined with the structure of the Morgan Stanley analysts’ forecasting database to model …
Tunneling As An Incentive For Earnings Management During The Ipo Process In China, Jiwei Wang, Joseph Aharony, Hongqi Yuan
Tunneling As An Incentive For Earnings Management During The Ipo Process In China, Jiwei Wang, Joseph Aharony, Hongqi Yuan
Research Collection School Of Accountancy
Using a sample of 185 Chinese IPO firms listed on the Shanghai Stock Exchange during the period 1999-2001, we show that related-party (RP) sales of goods and services could be used opportunistically to manage earnings upwards in the pre-IPO period. We also provide evidence that such behavior may be motivated by the prospect of tunneling opportunities in the post-IPO period, i.e., exploiting economic resources from minority shareholders for the benefit of the parent company. We provide evidence of one such opportunistic tunneling tool: non-repayment by Chinese parent companies of net outstanding corporate loans made to them by their newly listed …