Matsumura, Ella Mae; Subramanyam, K.R.; Tucker, Robert R. - In: Journal of Business Finance & Accounting 24 (1997-07) 6, pp. 727-758
This paper analyzes a game-theoretic model in which a client can potentially avoid a going-concern opinion and its self-fulfilling prophecy by switching auditors. Incumbent auditors are less willing to express a going-concern opinion the more credible the client's threat of dismissal and the...
