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Audits, Audit Quality and Signalling Mechanisms : Concentrated Ownership Structures

Ojo D Delaney PhD, Marianne - 2016

Do jurisdictions with concentrated ownership structures require less reliance on audits as corporate governance mechanisms and devices? Why do concentrated ownership structures still prevail in certain jurisdictions which are considered to be “market based corporate governance systems”? More...

Persistent link: https://www.econbiz.de/10013006888

The Audit Risk Model, the Signal Detection Theory, and the Information Manipulation Theory

Elsayed, Ashraf - 2017

The Audit Risk Model. The Statement of Auditing Standard (SAS) 99, 107, and International Standards on Auditing (ISA) 240, 315, and 330 require auditors to assess fraud risk factors and materiality level (risk of material misstatement) in a client's financial statements (Bhattacharjee, Maletta,...

Persistent link: https://www.econbiz.de/10012947567

The Importance of Information Asymmetry to Auditor Choice, Audit Fees, and Going Concern Opinions : Evidence from Exploiting Exogenous Shifts in Analyst Coverage

Gunn, Joshua L. - 2017

We analyze whether information asymmetry affects three major aspects of the audit process using an instrumental variables research design that exploits exogenous increases in information asymmetry stemming from brokerage house mergers and closures. Consistent with our predictions, we find that a...

Persistent link: https://www.econbiz.de/10012956547

Mixed signals : investment distortions with adverse selection

Darst, R. Matthew; Refayet, Ehraz - 2019

We study how adverse selection distorts equilibrium investment allocations in a Walrasian credit market with two-sided heterogeneity. Representative investor and partial equilibrium economies are special cases where investment allocations are distorted above perfect information allocations. By...

Persistent link: https://www.econbiz.de/10012181247

Auditor Choice by IPO Firms in Germany : Information or Insurance Signalling?

Lenz, Hansrudi - 2016

consists of 306 firms. In the IPO context, audit quality can be used as a signal about firm value (information signalling). On … risks (insurance signalling). Larger offerings lead to increased liability and reputation risks. Our hypotheses try to … by IPO firms seems to be dominated by ‘insurance signalling', whereas ‘information signalling' seems to be of minor …

Persistent link: https://www.econbiz.de/10013001121

PCAOB Form 2 Disclosure : A Firm-Level Signal of Audit Quality?

Buchheit, Steve - 2016

In response to Section 102(d) of the Sarbanes-Oxley Act, PCAOB Rule 2200 required annual reporting from all registered accounting firms via PCAOB Form 2. Filed for the first time during the second quarter of 2010, PCAOB Form 2 provides information about (1) each accounting firm's available human...

Persistent link: https://www.econbiz.de/10013005890

Self-Reported Actions, Signaling, and Auditing

Jungbauer, Thomas - 2020

In many real-world settings, an action that affects the value of a product or service is self-reported rather than publicly observable. This, in turn introduces the possibility of misrepresentation. In this paper, we propose a theoretical model of self-reporting. A sender chooses an action and...

Persistent link: https://www.econbiz.de/10012831981

Signaling versus auditing

Bester, Helmut; Lang, Matthias; Li, Jianpei - 2021

We analyze a competitive labor market in which workers signal their productivities through education à la Spence (1973), and firms have the option of auditing to learn workers’ productivities. Audits are costly and non–contractible. We characterize the trade–offs between signaling by...

Persistent link: https://www.econbiz.de/10012648090

Oligopolistic competition in price and quality

Dubovik, Andrei; Janssen, Maarten C. W. - 2008

neither. We show that two types of signalling equilibria are possible. Both are characterised by dispersion and Pareto …

Persistent link: https://www.econbiz.de/10011376636

Private Information, Securities Lending, and Asset Prices

Nezafat, Pedram - 2020

We study the role of private information in the equity-lending market in a rational expectations model with endogenous loan fees. When all investors are privately informed, an increase in information precision reduces the fee by increasing trading aggressiveness and decreasing demand dispersion....

Persistent link: https://www.econbiz.de/10012851740