Purpose The purpose of this paper is to examine the role of D&O insurance in audit pricing in Taiwan, an emerging market in which auditors face negligible litigation risk and intense competition. Design/methodology/approach It examines the association between audit fees and D&O insurance...

Purpose – This study aims to empirically investigate whether the adoption of fair-value-accounting decreases the relevance of banks' capital adequacy ratios (CARs) in explaining insolvency risks. Additionally, how the disclosure quality affects the superiority of fair-value-based CARs over...

Prior studies suggest that directors' and officers' (D&O) insurance induces moral hazard and reduces incentives on behalf of stockholders. As a result, we argue that purchasing D&O insurance exhibits lower investment efficiency. Using data from Taiwan between 2008 and 2010, which is mandatorily...

This paper examines the impacts of two attributes of accounting recognition, i.e., nonlinearity and multi-period lags, on Basu (1997) measure of asymmetric timeliness. First, we predict and find that asymmetric timeliness is affected by nonlinear earnings responses and more pronounced when news...