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1.
Santanu Mitra Mahmud Hossain Donald R. Deis 《Review of Quantitative Finance and Accounting》2007,28(3):257-285
The present study examines the empirical relationship between ownership characteristics and audit fees. The basic premise
is that the level of ownership sophistication and the extent to which ownership is large and substantial impact the effectiveness
of stockholder monitoring on corporate affairs including the financial reporting process. Furthermore, high managerial ownership
firms may experience a decline in agency problems in financial reporting due to a decrease in managerial propensity to misreport
financial results. By employing a cross-sectional least squares regression analysis for a sample of 358 New York Stock Exchange-listed
firms audited by the Big Five auditors, we find evidence of a significantly positive relationship between diffused institutional
stock ownership (i.e., having less than 5% individual shareholding) and audit fees, and a significantly negative relationship
between institutional blockholder ownership (i.e., having 5% or more individual shareholding) and audit fees. Finally, we
document that managerial stock ownership is negatively associated with audit fees. We do not, however, find evidence of any
relationship between noninstitutional blockholder ownership (with at least 5% individual stock ownership) and audit fees.
The study's main results hold in various specification tests including when the effects of board-related and audit committee
variables are factored in the analysis. Based on the observed relationship between the ownership variables and audit fees,
we suggest that the ownership characteristics of a firm as a part of its governance mechanism constitute an important determinant
of audit fees.
相似文献
Donald R. DeisEmail: |
2.
We investigate if the SEC’s recently mandated disclosure of fees for audit and nonaudit services paid by firms to their incumbent auditors affected the market’s perception of auditor independence and earnings quality. Following the initial fee disclosures in 2001, we find that the market valuation of quarterly earnings surprises (earnings response coefficient) was significantly lower for firms with high levels of nonaudit fees than for firms with low levels of such fees. In contrast, in the year prior to the new fee disclosures, there was no reduction in earnings response coefficients for firms that subsequently reported high nonaudit fees. Our evidence suggests that mandated fee disclosures provided new information that was viewed by the market as relevant to appraising auditor independence and earnings quality.
相似文献
Bin KeEmail: |
3.
Rong-Ruey Duh Wen-Chih Lee Chi-Yun Hua 《Review of Quantitative Finance and Accounting》2009,32(1):33-59
This paper examines whether non-audit service provision impairs auditor independence, and whether the degree of auditor independence
in Taiwan changed in the wake of the 2004 Procomp scandal. The auditors involved in the Procomp affair were suspended from
practice for 2 years and were sued, and we posit that these unprecedented sanctions and litigation affected subsequent auditor
behavior. Considering the measurement errors involved in discretionary accruals, we propose an alternative analytic approach
in which the dependent variable in the regression analysis is the difference between audited earnings and forecast earnings,
scaled by total assets, and the primary independent variable is the non-audit fees ratio. After controlling for the effects
of financial leverage, operating and market performance, industry, company size, audit firm size, management forecast error,
and management attempts to manipulate earnings, regression analysis indicates that the coefficient for non-audit fees ratio
is negative and significant in 2003 but not in 2004. Using non-audit fees instead of non-audit fees ratio to conduct the regression
analysis yields similar results. This finding is consistent with the notion that auditors make a trade-off between gaining
service fees and avoiding litigation and reputation loss. Limitations and policy implications are also offered.
相似文献
Chi-Yun HuaEmail: |
4.
C. Charles Okeahalam 《Journal of Financial Services Research》2008,33(3):147-162
I assess the impact of bancassurance on the price of retail financial services. I find that service fees in a product bundle
increase less than proportionally to the number of services; that an increase in the number of clients in each product bundle
market reduces fees by 1.5%; that the degree of competition in the markets of each bundle also reduces fees; that premium
products have higher average costs; and finally, that cross-holdings reduce prices by about 5% and bancassurance reduces prices
by just over 6%. The price reduction declines if both strategies are combined.
相似文献
C. Charles OkeahalamEmail: |
5.
The hiring of accounting and finance officers from audit firms: how did the market react? 总被引:1,自引:0,他引:1
This study investigates the market’s reaction to companies hiring accounting and finance officers directly from their external
audit firms—the auditor-to-client hiring practice referred to as the “revolving door.” The Sarbanes-Oxley Act (SOX) eliminated this hiring practice, reflecting concerns that such appointments may impair audit and financial reporting
quality. However, it was also argued that companies may have benefited from hiring individuals already familiar with their
systems, organization and personnel. To determine the prevalence of this hiring practice and how shareholders viewed these
appointments, we examine 3-day cumulative abnormal returns around the announcements of newly appointed accounting and finance
officers over the period 1985–2002. We find that the proportion of revolving door hires is relatively low (only 6.1% of all
hires in our sample), but that when they did occur the market valued the revolving door appointments more positively than
other appointments. Further tests reveal that the positive market reaction to revolving door appointments is driven mainly
by smaller companies, and that these appointments are not associated with lower financial reporting quality when assessing
subsequent discretionary accruals or the receipt of an Accounting and Auditing Enforcement Release (AAER). Overall, the low
frequency of occurrence, investors’ positive perceptions, and the lack of association with deteriorated reporting quality
indicate that the SOX restriction on revolving door appointments may have been unnecessary and will do little to protect shareholders.
相似文献
David S. NorthEmail: |
6.
Domino Effects Within a Housing Market: The Transmission of House Price Changes Across Quality Tiers 总被引:1,自引:0,他引:1
Lok Sang Ho Yue Ma Donald R. Haurin 《The Journal of Real Estate Finance and Economics》2008,37(4):299-316
We argue that shocks to a housing market are transmitted through the hierarchy of quality tiers within a housing market. The
result is the prediction of waves of house price changes accompanied by changes in transaction volume. Our study is related
to existing models of spatial ripple effects across housing markets. The data are from the Hong Kong housing market. The findings
from Granger causality tests strongly support the argument that domino effects within a single housing market occur in response
to external shocks.
相似文献
Donald R. HaurinEmail: |
7.
Michael L. Ettredge Soo Young Kwon David B. Smith Mary S. Stone 《Review of Accounting Studies》2006,11(1):91-117
Our study assesses whether SFAS No. 131 improved disclosure about the diversity of multiple segment firms’ operations. We
find a post-SFAS No. 131 increase in cross-segment variability of segment profits, an increase in the association between
reported and inherent cross-segment variability, and an increase in association between reported variability and capital market
incentives to disclose. We interpret the results as evidence that SFAS No. 131 increased the transparency of segment profitability
disclosures, and as indicating SFAS No. 131 allowed firms depending more on external financing to disclose more about differences
in segment profitability.
相似文献
Michael L. EttredgeEmail: |
8.
Zhilan Feng Chinmoy Ghosh C. F. Sirmans 《The Journal of Real Estate Finance and Economics》2007,35(3):225-251
We analyze director compensation for Real Estate Investment Trusts (REITs) and investigate the relations between director
compensation and other measures of the board independence and board monitoring. Using 136 REITs in 2001, we find that REITs
that pay higher equity-based compensation to their board members are associated with higher financial performance. Our data
indicate that board equity-based compensation is positively related to the existence of an independent nomination committee,
however, it has no significant relationship with board size, proportion of outside directors, CEO duality and CEO tenure and
ownership.
相似文献
Zhilan FengEmail: |
9.
This study examines whether auditor opinions are affected by political and economic influences from governments. We use auditor
locality (local versus non-local) to capture such influences from local governments in China. Based on data from China’s stock
markets for the period 1996–2002, we find that local auditors, who have greater economic dependence on local clients and are subject to more political influence from local governments
than non-local auditors, are inclined to report favorably on local government-owned companies to mitigate probable economic
losses. Moreover, companies with qualified opinions are more likely to switch from a non-local auditor to a local auditor
than companies with unqualified opinions. Contrary to some prior studies, we find that in China’s political environment, local
government-owned companies that switched from a non-local auditor to a local auditor after receiving a qualified opinion can
succeed in opinion shopping.
相似文献
Phyllis Lai-lan MoEmail: |
10.
Home Equity,Household Savings and Consumption 总被引:1,自引:0,他引:1
The home-owning family’s equity is a piggybank that can be broken open by borrowing. Each borrowing increases liabilities
and cash equally, initially leaving net wealth unchanged. When those funds are spent and cash balances fall, consumption increases
even as net wealth can decline. In a dynamic optimization, the marginal propensity to consume from net wealth is not always
positive and can be positively correlated with housing debt.
相似文献
P. ChinloyEmail: |
11.
Hsuan-Chu Lin 《Review of Quantitative Finance and Accounting》2007,29(2):173-180
This paper identifies and corrects a typographical error in Black and Cox (J Finance 31:351–367, 1976). While the typographical error is seemingly trivial, the magnitude of the pricing error that it generates can be substantial.
相似文献
Hsuan-Chu LinEmail: |
12.
Experimental evidence of how prior experience as an auditor influences managers’ strategic reporting decisions 总被引:1,自引:0,他引:1
Kendall O. Bowlin Jeffrey Hales Steven J. Kachelmeier 《Review of Accounting Studies》2009,14(1):63-87
We design an experiment to examine the influence of audit experience on subsequent reporting decisions when auditors become
managers of audited firms. In contrast to the independence issues that can arise when auditors and their clients are related
by prior affiliation, we focus this study on the more common case in which auditors assume subsequent employment with other firms’ clients. In a bi-matrix experimental game that captures key features of the strategic tension between auditors and
reporters, we find that reporters who have prior experience as an auditor, particularly the experience of having been a diligent
auditor, are more sensitive to large penalties for aggressive reporting than are reporters whose experience is exclusively
as a reporter. Our results suggest implications for regulators in predicting the effects of reporting penalties and for firms
in considering the effects of CPA experience when hiring for reporting positions.
相似文献
Steven J. Kachelmeier (Corresponding author)Email: |
13.
We provide an empirical support for theories of lender specialization using the recently developed market for Debtor-in-Possession
(DIP) financing. The legal environment in which DIP financing operates represents a natural laboratory for testing determinants
of lending specialization (e.g. lender choice). We find that the choice of lender is not driven by credit risk, but by information
considerations and that this lending specialization has loan pricing effects. In short, banks (non-bank lenders) lend to more
(less) transparent firms and at lower (higher) loan spreads. Our results are consistent with the interpretation that banks
provide important and useful services.
相似文献
Gabriel G. Ramirez (Corresponding author)Email: |
14.
We evaluate the relative performance of funds by conditioning their returns on the cross-section of portfolio characteristics
across fund managers. Our implied procedure circumvents the need to specify benchmark returns or peer funds. Instead, fund-specific
benchmarks for measuring selection and market timing ability are constructed. This technique is robust to herding as well
as window dressing and mitigates survivorship bias. Empirically, the conditional information contained in portfolio weights
defined by industry sectors, assets, and geographical regions is important to the assessment of fund management. For each
set of portfolio characteristics, we identify funds with success at either selecting securities or timing-the-market.
相似文献
Mitch Warachka (Corresponding author)Email: |
15.
This article introduces the 2007 Maastricht-Cambridge-MIT Symposium articles in this special issue. The introduction not only
briefly describes each of the four articles from that symposium included in this special issue, but also describes the symposium
including links to other papers and presentations of the symposium not published in this issue.
相似文献
David Geltner (Corresponding author)Email: |
16.
The Determinants of REIT Cash Holdings 总被引:1,自引:0,他引:1
William G. HardinIII Michael J. Highfield Matthew D. Hill G. Wayne Kelly 《The Journal of Real Estate Finance and Economics》2009,39(1):39-57
The factors influencing the cash holdings of REITs are examined with the view that the REIT industry should yield new information
regarding the drivers of corporate cash policy due to their unique operating conditions. The availability of REIT line of
credit data also allows us to test the association between cash holdings and line of credit access and use. Data constraints
in prior investigations have left this an unresolved empirical question in the cash holdings literature. The baseline results
show that REIT cash holdings are inversely related to funds from operations, leverage, and internal advisement and are directly
related to the cost of external finance and growth opportunities. Cash holdings are also negatively associated with credit
line access and use. The results imply that REIT managers elect to hold little cash to reduce the agency problems of cash
flow thereby increasing transparency and reducing the future cost of external capital.
相似文献
G. Wayne KellyEmail: |
17.
The effect of accessibility upon rent is investigated for office properties located in Downtown Stockholm. Starting from the
firm’s cost minimization problem, a translog hedonic model is derived. The results suggest the model has good predictive power
in explaining the variation in the log of the rent. A negative rent gradient is obtained with a base approximately 90 m from
the postulated focal point. It appears as if Space Syntax adds important information to the understanding of the intraurban
office rent pattern.
相似文献
Olof NetzellEmail: |
18.
Ben R. Marshall Martin R. Young Rochester Cahan 《Review of Quantitative Finance and Accounting》2008,31(2):191-207
We show that candlestick charting, the oldest known form of technical analysis, is not profitable in the Japanese equity market
over the 1975–2004 period. Candlestick technical analysis, which was developed in Japan in the 1600s, is deeply intertwined
with Japanese culture and is very popular in Japan. However, there is no evidence candlestick technical trading strategies
add value in either the entire 30 year period, in three 10 year sub-periods or in bull or bear markets.
相似文献
Rochester CahanEmail: |
19.
William H. Beaver Maureen F. McNichols Karen K. Nelson 《Review of Accounting Studies》2007,12(4):525-556
We show that the asymmetric effects of income taxes and special items for profit and loss firms contribute to a discontinuity
at zero in the distribution of earnings. Income taxes draw profit observations towards zero while negative special items pull
loss observations away from zero. These earnings components are thus expected to contribute to a discontinuity even in the
absence of discretion. We show our results are not an artifact of deflation and that other common components of earnings do
not have similar effects on the earnings distribution around zero.
相似文献
Karen K. NelsonEmail: |
20.
The purpose of this study is to investigate the relation between investor protection, adverse selection, and the probability
of informed trading. Previous research has established a direct relation between investor protection and firm liquidity, measured
by bid-ask spreads and depths. In this study, we test the hypothesis that adverse selection is the mechanism through which
poor investor protection leads to higher costs of liquidity. The Hong Kong equity market provides a unique opportunity to
compare adverse selection differences across distinct investor protection environments, holding constant the trading platform
and currency. Using various bid-ask spread decomposition models and probability of informed trading estimates, we confirm
the hypothesized relation between investor protection quality and adverse selection costs. These findings contribute to the
literature by establishing one of the links in the chain connecting investor protection to firm valuation.
相似文献
Dennis Y. Chung (Corresponding author)Email: |