SYNOPSIS: This study examines the association between chief executive officer (CEO) age and financial reporting quality of firms. The qualities examined are meeting or beating analyst earnings forecasts restatements. Based on extant research, we hypothesize that older CEOs associated with higher-quality reporting. Using a sample 3,413 firms for period 2005 to 2008, find positive CEO quality. Specifically, is negatively Our therefore extends corporate governance literature by identifying as...

Purpose The purpose of this paper is to investigate whether gender diversity audit committees has a significant impact on the firm's earnings management. Design/methodology/approach This uses performance‐adjusted discretionary accrual model examine association between variables and Regression analysis applied using 320 firms from S&P Small Cap 600 . Findings authors find consistent evidence show that presence female director committee constrains management by increasing negative...

SUMMARY: Legislators, regulators, and the media have expressed concerns that auditors “lowball” fees for initial-year audits such fee discounts can lead to reduced audit quality. We hypothesize will be less likely in post-SOX period than pre-SOX period. Using both fee-levels fee-changes models, we find Big 4 clients receive of about 24 percent 2001; this finding is consistent with results from many prior studies examined various periods SOX. However, 2005–2006 pay an premium around 16...

ABSTRACT Issues related to low-balling of initial year audit fees and the resultant impact on quality have received significant attention from regulators in many countries. Using 9,684 observations China during years 2002–2011, we find that there is a fee discount following an firm change when both signing partners are different prior year. The evidence mixed if one or also moves with client new firm. We discounting our analysis levels, but not changes Sanctions for problem audits greater...

Casterella, Francis, Lewis, and Walker (CFLW 2004) find, using survey data from 1993, that (1) there is a Big 6 industry specialization audit fee premium in the small client segment of U.S. market, but (2) fees decrease for large companies as becomes increasingly relative to an auditor's clientele. In this study, we first replicate confirm results CFLW (2004), SEC filings fiscal 2000 2001. post-SOX period, find related continue hold 2004 not 2003—suggesting 2003 perhaps unique year due flux...

Abstract Manuscript Type Empirical Research Question/Issue This study investigates the influence of CEO characteristics on internal control quality in U . S Findings/Insights Using a sample 4,374 E xecu C omp non‐financial firms, we find that entrenchment and age are significantly associated with material weakness disclosure ( MW ) under arbanes‐ O xley ection 404 SOX 404). Our results demonstrate may affect s' behavior response to requirements. Theoretical/Academic Implications provides...

Ashbaugh, LaFond, and Mayhew (ALM 2003), using data from proxy statements filed in 2001, fail to find that nonaudit fees are associated with biased financial reporting. The SEC (2002, 2003) has asserted combining all types of service a single category would confuse statement users, audit-related services represent “services accountants, effect, must perform for their audit clients” (SEC 2002, 2003). In this paper, we replicate extend ALM (2003) by the more finely partitioned is required be...

Purpose – The purpose of this study is to investigate the association between a corporate executive’s gender and audit fees. Based on findings extant research that there are gender-based differences may have implications for financial reporting process, authors posit an CEO Design/methodology/approach test their hypothesis by performing both univariate multivariate regression analyses sample 8,402 Compustat firm-year observations from US firms 2003-2010. Findings authors' indicate with...

SYNOPSIS This study examines the relationship between CEO turnover in client companies and fees charged by their audit firms. We propose that forced (such as dismissals) pose higher business risks for firm than voluntary retirements); further, greater risk leads to prices. develop a regression model of includes, predictor variables, type control variables identified prior studies (e.g., ROA, total assets, corporate governance). Results reveal with have significantly either or no turnover....

SYNOPSIS The volatility in other comprehensive income (OCI) reflects how market-related price movements, such as exchange rate and equity changes, affect a firm's future profits. Hence, firms with higher of OCI are likely to have inherent risk. Using hand-collected data from 2002–2006, we find that the is positively associated audit fees provides significant incremental explanatory power for over above level net income. We also effect each component on consistent prediction it might Our...

Abstract This study examines the association between selection of an industry‐specialist auditor and corporate social responsibility (CSR). We find that firms with higher CSR ratings are more likely to hire auditors (national‐level industry leaders, city‐level leaders or joint city‐national leaders). Moreover, better performance related product quality environment in controversial industries found select non‐specialized auditors. The results suggest such may overinvest activities associated...

Abstract The effects of corporate governance (CG) on earnings management (EM) have been debated for many years. Thus, this paper explores issue in a novel way that utilizes quantile regression to revisit the association between CG mechanisms and EM. We find non‐uniform relation EM non‐financial U.S. firms does exist from 2007 2015. Specifically, empirical evidence documents can effectively constrain earning manipulation among with higher discretionary accruals (High EM). However, effect...

The natural environment is undergoing significant changes due to human activities, with extreme weather profoundly impacting various aspects of life. In response increasingly frequent disasters, insurance companies and land developers require effective mathematical models balance risk reward. Meanwhile, communities need a quantifiable scientific approach preserve properties cultural, historical, or economic value. For the first question, we use client retention rate annual probability in...

The oral microbiota is associated with neuro-psychiatric disorders. However, there presently inadequate comprehension regarding the correlation between schizophrenia and microbiota. Moreover, patients frequently exhibit poor health, potentially influencing research outcomes. Therefore, this study aims to investigate changes in health status drug-free patients. Oral samples were collected from 50 healthy controls (HCs). downstream analysis was based on Illumina sequencing of V3-V4...

In this paper, we examine the associations between cost of equity capital and two audit committee (AC) characteristics: (1) average AC members' age (2) number other directorships. This study is motivated by recent emphasis on important role ACs in overseeing financial reporting processes, as well recognition critical costs firms' operational efficiency profitability. The empirical results show that lower US firms with higher age. We do not find any evidence directorships associated capital....

As mandated by Sarbanes-Oxley Act, firms must disclose material weaknesses in internal controls. This study extends the body of accounting research that seeks to identify factors associated with such disclosure. Drawing upon gender behavioral sciences, we argue female audit committee members examine controls more critically and thoroughly than their male counterparts; hence, females these positions are likely report problems. A logistic regression model weakness disclosure is developed...

SYNOPSIS Extant accounting research based on data from the United States, Europe, and Australia finds that increases in carbon emissions are associated with lower firm value. However, recent indicates investor perspectives corporate social responsibility (CSR) other parts of world differ those Western investors. This study investigates whether emissions, as one indicator poor CSR performance, also a value Taiwan. Using disclosure Taiwanese-listed companies between 2012 2016, we find is...

Abstract This paper investigates the association between management turnover following financial restatements and probability of subsequent restatements. We find that restating firms replace (CEO and/or CFO) are more likely to restate their statements again. also mainly attributable new management. Overall, our results suggest may not be an effective mechanism remediate restatements, but change a in greater possibility lower earnings quality (i.e., higher accruals‐based management). Our...