This study investigates the effect of a partner-client relationship on auditor switches.We find that a non-signing partner, especially one who is ‘job-hopping,' has a significant effect on auditor switches. Specifically, if a partner who was the signatory of a public company's annual report no...

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...

This case is fictitious but draws upon facts from actual occurrences. It requires students to apply auditing concepts and professional standards in an international setting. An affiliate of a U.S. accounting firm, Loxon Shanghai CPA Ltd., has received a request from the SEC for the audit...

Are foreign investors in emerging markets more financial statement literate than domestic investors? If so, this conjecture implies that foreign (domestic) investors are more likely to revise their return expectations to cash flow (discount rate) news. It also implies that cash flow news and...

This paper investigates the determinants of profitability, risk, and efficiency for Korean and Chinese commercial banks. To conduct the empirical analysis, this study selects five nation-wide banks and six local banks in Korea, and five state-owned banks and eight joint-equity banks in China....