We show that firms 'in danger' of being delisted from a stock market (NASDAQ) report higher performance-adjusted discretionary accruals and the inflated accruals are associated with an increased likelihood of maintained listing. Accruals of firms 'in danger' are less positive in fiscal quarters...

Earnings manipulations are often revealed with significant lag. This usually entails dramatic share price' slide. Therefore investors should avoid/buy stocks with low/high earnings-quality. However, given the shortcomings of auditing, using this strategy requires application of the other (then...

The main objective of this study is to ascertain the effect of Accounting Information on Market Share Price of Information, Communication, and Technology (ICT) firms listed on Nigeria Stock Exchange.The specific objectives are to ascertain the effect or otherwise of Dividend per share, Earnings...

We investigate the association between audit partner industry specialization and future stock price crash risk. Although research on audit partners has been growing, we are not aware of any prior studies that investigate partner-level specialization and crash risk. Using a large sample of...

This study investigates the market's response to earnings surprises after first-time going-concern modifications (GCMs). Using a sample of 581 firms and an events-study research design, we document a significant decrease in earnings response coefficients (ERCs) in the quarters following the GCM....

We investigate the effects of engagement auditor industry specialization on stock price crash risk. Although research on audit partners has been growing, we are not aware of any prior studies that investigate partner-level specialization and crash risk. Using a large sample of Chinese stocks...

This paper examines the association between abnormally long audit report lag and future stock price crash. Audit report lag is defined as the period between a company's fiscal year end and the audit report date, and is informative about audit efficiency. Although a substantial body of literature...

We examine the investor reaction to misstatement news for Australian listed firms from 2006 to 2013. We find 4.1% of firm-years have a misstatement and 79% of misstatements are disclosed initially only in the periodic filings (stealth misstatements). We find no investor reaction for the average...

This paper attempts to analyse the information content of a qualified audit opinion on the pricing of an IPO. To minimise the effect of selection bias, we match the sample of IPOs with an audit opinion and without, based on their propensity scores. Based on classical underpricing, firms with...

We examine client stock market reaction to news of PCAOB sanctions imposed upon Deloitte and Touche, LLP - the first against a Big 4 auditor. The PCAOB Order against Deloitte contains three potentially value relevant pieces of information. First, it shows that Deloitte did not conduct a quality...