Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 2 of 2
Full-Text Articles in Accounting
Auditor Independence: Third Party Hiring And Paying Auditors, Silvia Romero
Auditor Independence: Third Party Hiring And Paying Auditors, Silvia Romero
Department of Accounting and Finance Faculty Scholarship and Creative Works
Purpose – Although the Sarbanes Oxley Act (SOX) has introduced rules to avoid auditor independence impairment, there are still issues that are not sufficiently solved. The purpose of this paper is to discuss the problems of auditor independence that arise by auditors being hired and paid by the auditee, and by SOX requiring rotation of only the lead audit partner. Design/methodology/approach – The paper takes the form of a discussion paper, exploring alternatives to overcome the mentioned issues of independence. Findings – The paper presents an alternative where auditors are hired and paid by an external third party. Besides this …
Accentuated Intraday Stock Price Volatility: What Is The Cause?, Deniz Ozenbas, Michael S. Pagano, Robert A. Schwartz
Accentuated Intraday Stock Price Volatility: What Is The Cause?, Deniz Ozenbas, Michael S. Pagano, Robert A. Schwartz
Department of Accounting and Finance Faculty Scholarship and Creative Works
In equity markets, the opening and closing of trading are particularly stressful periods. Ozenbas, Pagano, and Schwartz investigate the quality of price determination at these times (compared to midday periods) for large-, mid-, and smallcapitalization stocks on the NYSE, NASDAQ, and London Stock Exchange. Using three different metrics, they consistently find lower quality at both the open and the close.The deterioration of market quality at openings is greatest for large-cap stocks, but no systematic association with cap size is observed at the close. Large-cap stocks evidently lead smaller-cap stocks in finding new equilibrium values, and accentuated volatility at the open …