We examine the ability of selected accounting and audit quality variables measured in a period prior to the financial crisis (i.e., the four quarters of 2006), to predict banks that subsequently failed during the financial crisis. These predictor variables include balance sheet strength, loan...

We hypothesize that if individual auditors possess unique audit styles that they consistently apply to different audit engagements, then client firms with a common signing auditor will exhibit higher earnings comparability. Using a large sample of Chinese firms, we find that client firms report...

We examine the relation between auditor reputation and earnings management in banks using a sample of banks from 29 countries. In particular, we examine the implications of two aspects of auditor reputation, auditor type and auditor industry specialization, for earnings management in banks. We...

We examine whether Big 4 auditors and non-Big 4 auditors maintain similar or different levels of financial reporting quality for private firms. DeAngelo (1981) suggests that litigation and reputation considerations incentivize Big 4 auditors to deliver higher audit quality than non-Big 4...

We examine the effects of audit quality on earnings management and cost of equity capital for two groups of Chinese firms: state-owned enterprises (SOEs) and non-state-owned enterprises (NSOEs). The differences in the nature of the ownership, agency relations and bankruptcy risks lead SOEs to...

In 2011, the largest banks were designated as Global Systemically Important Banks (GSIBs) by the Financial Stability Board. While these banks face closer supervision and additional constraints, they also benefit from an implicit guarantee from their governments. The changed environment for these...

We examine how auditor reputation conditions the market valuation of banks' loan loss provision (LLP). The inherent uncertainty associated with and discretion permitted in estimating the LLP contributes to information asymmetry. The auditor's certification and monitoring roles influence firm...

Section 301 of SOX implicitly assumes that audit committees can independently determine audit fees. Critics of Section 301 have questioned this assumption, in particular, and the efficacy of Section 301, more generally. In response, the SEC issued a concept release in 2015 calling for public...

We examine auditor independence in the banking industry by analyzing the relation between fees paid to the auditors and the extent of earnings management through loan loss provisions (LLP). We also examine whether this relation differs across large banks whose managements are required under the...