Purpose – The purpose of this paper is two-fold: first, to examine whether the quality of accruals, as measured by accrual persistence, improved in the post-SOX period, and second, to examine the degree to which SOX-related improvement in accrual persistence varies across companies depending...

While firm-initiated compensation recovery (or clawback) provisions are gaining popularity and the recently enacted Dodd-Frank Act seeks to make the clawback of erroneously awarded compensation mandatory for all listed companies, little is known about their effectiveness. We find that the...

We are interested in understanding how agency conflicts in private firms arise through ownership structures and family relationships. Specifically, we analyze auditors' increase of effort and firms' choice of auditors in situations with higher level of agency conflicts. For a large sample of...

I examine that relationship between audit partner rotation and audit quality using 4,232 Japanese listed companies from 2003 to 2006. Firstly, I find that audit-partner rotation over seven years and lead audit-partner rotation over five years have a negative relationship with abnormal accruals...

We examine the relation between Big N industry specialist auditors and analyst forecast properties using a national and city level industry specialist framework. Consistent with the assumption that audit quality is positively related to financial reporting quality and predictability of...

Francis and Yu (2009) and Choi, Kim, Kim, and Zang (2010) report evidence that Big 4 audits are of higher quality when the engagement office is of larger size: specifically, client earnings quality is higher and auditors in larger offices are more likely to issue going concern audit reports. We...

We investigate whether auditor's mandatory rotation affects audit quality. In specific, we test the effectiveness of Ministry of Finance's (MOF) decree no. 423/2002. Following some other studies that investigate audit quality, we use discretionary accruals as the proxy for audit quality. Our...

We are interested in understanding how agency conflicts in private firms arise through ownership structures and family relationships. Specifically, we analyze auditors' increase of effort and firms' choice of auditors in situations with higher level of agency conflicts. For a large sample of...

Using a sample of U.S. firms spanning 2001-2008, we examine whether female directors or nonexecutive female directors or female audit committee members affect auditor choice and audit effort measured by audit fees. After correcting for selectivity bias and controlling for other known board, firm...