ABSTRACT: We examine whether and how individual auditors affect audit outcomes using a large set of archival Chinese data. analyze approximately 800 find that they exhibit significant variation in quality. The effects have on quality are both economically statistically significant, pronounced small firms. also the auditor can be partially explained by characteristics, such as educational background, Big N firm experience, rank firm, political affiliation. Our findings highlight importance...

ABSTRACT: This study examines how the legal and regulatory changes in China affect relationship between client economic importance audit quality. At individual auditor level, we find that propensity to issue modified opinions (MAOs) is negatively correlated with from 1995 2000. However, 2001 2004, when institutional environment became more investor-friendly, MAOs positively associated importance. These findings are corroborated by an analysis of sanctions. Although measured at office level...

ABSTRACT We examine whether social ties between engagement auditors and audit committee members shape outcomes. Although these can facilitate information transfer help alleviate management pressure to waive correction of detected misstatements, close interpersonal relations undermine auditors' monitoring the financial reporting process. measure by alma mater connections, professor-student bonding, employment affiliation, quality propensity render modified opinions, irregularities, firm...

ABSTRACT In China's political selection system, officials capable of growing local economies are rewarded with promotions. Eager to demonstrate economic achievements, newly appointed leaders may raise tax revenues expand fiscal expenditures on infrastructure projects. Against this backdrop, we study how appointments influence firms' planning. Based a sample locally administered state-owned enterprises (SOEs), find that firms decrease their avoidance after new take office. The...

Abstract Under the 1996‐98 security regulations in China, accounting rate of return on equity (ROE) has to be greater than 10 percent for three "consecutive" years a firm qualify stock rights offers. Despite declining economic conditions during this period, percentage firms reporting ROE between and 11 is about "three" times that 1994‐95. This unique regulatory environment provides natural experimental setting empirical assessment earnings‐management behavior its consequences. study examines...

Abstract Contemporaneous studies generally find a negative relationship between audit partner busyness ( APB ), measured as the number of clients in an partner's portfolio, and quality. Their argument is that busy does not devote sufficient time to properly his average client. Contrary these studies, we argue when optimally chosen by partner, equilibrium, there no causal Using Australian data for 1999–2010 period, show reliably linked quality, consistent with this equilibrium theory. We...

In China’s transitional economy, one of the major objectives government is to maintain social stability. We hypothesize that, through state ownership and appointment executives, Chinese officials can influence firms’ labor employment decisions by limiting layoffs when sales decline. Consistent with this hypothesis, we find that state-owned enterprises (SOEs) have stickier costs than non-SOEs, presence politically connected managers makes even in SOEs while having little effect non-SOEs. Such...

ABSTRACT Adverse client publicity can entail regulatory scrutiny over audited financial statements and impose political costs on auditors. We use the changes in caused by their controlling owners’ presence Hurun Rich List (the rich listing) China to test hypothesis that auditor conservatism increases with publicity. Our evidence indicates auditors issue more adverse audit opinions clients charge higher fees following listing events. Moreover, we observe strategically respond different...

The new species Leeonychiurus zijinensis sp. nov. is described from east China. It similar to L. fusongensis Sun & Arbea, 2014 and mai (Wray, 1950) sensu Bernard (2015) as having the same dorsal pso formula (32/133/33343). However, can be distinguished by on Abd. sterna II–IV 111 (112 in fusongensis, 001 mai), presence of unpaired axial chaetae m0 tergum V (absent more vesicles postantennal organ (18–20 species, 13–16 15 mai). A key world known genus a checklist Chinese Onychiurini are provided.

Multiple enzyme-triggered cascade biocatalytic reactions are vital in vivo or vitro, considering the basic biofunction preservation living organisms and signals transduction for biosensing platforms. Encapsulation of such enzymes into carrier endows a sheltering effect can boost catalytic performance, although selection preparation an appropriate is still concern. Herein, focusing on MAF-7, category metal azolate framework (MAF) with superiority against topologically identical ZIF-8, this...

We examine whether and how individual auditors affect audit outcomes using a large set of archival Chinese data. analyze about 800 find that they exhibit significant variation in quality. The effects have on quality are both economically statistically significant, pronounced small firms. also the auditor can be partially explained by characteristics, such as educational background, Big N firm experience, rank firm, political affiliation. Our findings highlight importance scrutinizing...

ABSTRACT China's split‐share reform of 2005 (the Reform) converts the previously restricted shares held by founding shareholders to tradable on open market. Against this backdrop, we study how underwriter‐affiliated analysts and firms' large interact in event latter's sales shares. We document that recommendations made affiliated are significantly more optimistic when plan sell their This optimism, however, is associated with negative post‐sale stock returns, suggesting profit from share...

ABSTRACT We investigate whether and how audit partners differ in the auditing of key matters (KAMs) expanded reports United Kingdom. Using hand-collected report data manual categorization, we first present descriptive evidence partners’ heterogeneity their KAM topic choices corresponding procedures. then document that when an partner rotates within same firm, incoming tends to change KAMs work, characteristics affect judgment. In addition, show heterogeneous selection work are associated...

ABSTRACT Focusing on mandatory partner rotations, we examine the importance of within‐firm network connections to selection successor partners and impact those post‐rotation audit performance. Using data from China, track partners' history identify incumbent‐successor stemming jointly conducted prior engagements. Although these can enhance information transfers thus performance, they may also pose a threat quality by compromising successor's independence. Among pool replacement candidates,...

This paper examines two issues. The first issue is the degree of relative isolation managerial accounting research (MAR) from related disciplines. Using citations collected Web Science, study shows that MAR published during 1986–2000 in four leading journals cited fields as diverse economics, operations research, psychology, sociology, organizational behavior, and strategic management. Our findings support Kinney's (2001) observation researchers have a competitive advantage areas relating to...