We examine how capital market investors perceive the shared-opinion audit report (SOAR). Using earnings response coefficients (ERCs) to proxy for investors' perceptions of audit quality, we observe negative earnings surprise when the SOAR is announced as compared to unqualified audit opinions....

Purpose The purpose of this paper is to examine the role of D&O insurance in audit pricing in Taiwan, an emerging market in which auditors face negligible litigation risk and intense competition. Design/methodology/approach It examines the association between audit fees and D&O insurance...

Prior studies suggest that directors' and officers' (D&O) insurance induces moral hazard and reduces incentives on behalf of stockholders. As a result, we argue that purchasing D&O insurance exhibits lower investment efficiency. Using data from Taiwan between 2008 and 2010, which is mandatorily...