Economic consequences of SFAS 142 goodwill write‐offs

This paper examines the economic consequences of goodwill write‐offs under Statement of Financial Accounting Standards No. 142 (SFAS 142). Although write‐off firms have performed poorly, it is evident that deteriorating economic performance explains only a small proportion of write‐offs. After controlling for endogeneity of write‐off choice, I fail to find evidence that investors and analysts fixate on SFAS 142 goodwill write‐offs. I also provide evidence that write‐off firms pay higher audit fees, suggesting that auditors charge higher fees in response to extra audit effort. These results are consistent with the principles of market efficiency, analyst‐forecast rationality and efficient audit pricing.     

Further evidence on the determinants of audit pricing in universities

This study investigates the determinants of audit fees for UK universities, involving an analysis of 451 university-year observations over the period 2007–2010. The study contributes to a fledgling strand of research examining audit pricing in the public sector. In seeking to identify an appropriate model to explain audit fees we interview a number of university auditors and use their insights in conjunction with prior findings from both private and public sector studies of audit pricing. Our findings show that audit fees in UK universities are positively influenced by size, the number of subsidiary companies, the amount of endowments, the level of debtors, being located in England and the use of a London-based auditor. We also find that more research-intensive universities (using a range of measures) and universities with greater operating surpluses pay lower audit fees.     

The association between audit committees,compensation incentives,and corporate audit fees

This study uses audit fee data from the 2001–2003 reporting periods to examine the relationship between measures of audit committee effectiveness and compensation incentives with corporate audit fees. Our results suggest that audit committee size, committee member expertise, and committee member independence are positively associated to audit fee levels, consistent with the notion that audit committees serve as a complement to external auditors in monitoring management. In contrast, CEO long-term pay and insider ownership are inversely related to audit fee levels, substituting for external audit effort in motivating management. Notwithstanding results on the full sample of firm-years, we uncover significant differences in the determinants of audit fees between the years examined. An important implication of these results is that explaining the intra-firm variation in audit fees over time is clearly necessary in order to understand the antecedents and consequences of audit fees.

The Association between Auditor Choice,Ownership Retained,and Earnings Disclosure by Firms Making Initial Public Offerings*

Using a system of three simultaneous equations, we test the predictions of Datar, Feltham, and Hughes 1991 and Hughes 1986 between auditor choice, earnings disclosures, and retained ownership in U.S. firms making initial public offerings of securities. Using a sample of initial public offerings between 1990 and 1997, we find that the demand for high‐quality auditors increases with firm risk. Additionally, we find that auditor choice, earnings disclosure, and risk are determinants of retained ownership, which is consistent with the predictions of Datar et al. and Hughes that auditor choice and direct disclosure are substitute signals for ownership retention. Further, our results suggest that the signals chosen (i.e., retained ownership, auditor choice, and disclosure) are related through their cost structures and are chosen jointly to minimize the overall cost to the entrepreneur.     

我国环境税费改革的具体设想

本文通过介绍国外发展循环经济环境税费的情况,分析了我国现行相关税费制度的缺陷,提出具体的改革设想:规范行政性收费,推行"费改税";扩大资源税的征收范围,改革计税依据;借鉴国际经验,开征必要的新税种;改革消费税,与产品污染税有机结合;建立环保专项基金,实行环保税收优惠政策。