The property rights approach to the theory of the firm is the most prominent application of the incomplete contracting … wealth-constrained and protected by limited liability. It turns out that joint ownership can be optimal, since it avoids … wasteful rent-seeking activities when limited liability rents are necessary to induce high effort. Our results are in line with …

impact auditor liability, and that attorneys would benefit from a better understanding of juror decision making …

This paper studies how legal liability due to negligence can weaken or strengthen an auditor's reputation concerns in … the client market to provide high audit effort. A negligence liability rule relies on auditing standards to provide a … threshold for the level of due care. When the negligence standard is lax, legal liability can weaken the auditor's reputation …

' exposure to liability risk. This enhanced risk and its negative implications have resulted in an international trend intended … to limit auditors' liability. Currently, auditor liability is limited in approximately thirty-three countries. Liability …; adopting a proportionate liability rule; and permitting association of accountants in a limited liability corporation. Eleven …

auditor's independence strategy into the examination of auditor's legal liability. Second, the auditors' independence is …

liability for negligence would improve the rigor and reliability of these audits. The article concludes with a more general … analysis of how the private law norms of duty and reasonable care imposed by civil liability can improve private governance …