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Author

Steven Utke

Other affiliations: University of Georgia
Bio: Steven Utke is an academic researcher from University of Connecticut. The author has contributed to research in topics: Audit & Business. The author has an hindex of 9, co-authored 32 publications receiving 251 citations. Previous affiliations of Steven Utke include University of Georgia.

Papers
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Journal ArticleDOI
TL;DR: In this paper, the authors argue that the association between auditor industry specialization and audit quality depends on how long the auditor has been a specialist, and they continue to find that seasoned specialists produce higher quality audits than unseasoned auditors after matching.
Abstract: We argue that the association between auditor industry specialization and audit quality depends on how long the auditor has been a specialist. Using a sample of Big 4 audit clients from 2003-2014, we find that auditors who have only recently gained the specialist designation (unseasoned specialists) produce a level of audit quality that does not surpass that produced by non-specialist auditors, and is generally lower than the audit quality produced by seasoned specialists. We estimate that the seasoning process takes two to three years. In contrast to recent literature finding no effect of specialization after propensity score matching, we continue to find that seasoned specialists produce higher quality audits than unseasoned auditors after matching.

55 citations

Journal ArticleDOI
TL;DR: In this paper, the authors argue that the association between auditor industry specialization and audit quality depends on how long the auditor has been a specialist, and they measure audit quality using absolute discr...
Abstract: We argue that the association between auditor industry specialization and audit quality depends on how long the auditor has been a specialist. We measure audit quality using absolute discr...

54 citations

Journal ArticleDOI
TL;DR: In this article, the authors examine the relation between earnings management and block ownership of same-industry peer firms by a common set of institutional investors (common institutional ownership) and find that higher common institutional ownership is related to less earnings management.
Abstract: This study examines the relation between earnings management and block ownership of same‐industry peer firms by a common set of institutional investors (common institutional ownership) This relation is important given the tremendous growth of common institutional ownership and the significant influence of blockholders on financial reporting We hypothesize that common institutional ownership mitigates earnings management by enhancing institutions' monitoring efficiency and by encouraging institutions to internalize the negative externality of a firm's earnings management on peer firms' investments Consistent with our hypothesis, we find that higher common institutional ownership is related to less earnings management Analyses of a quasi‐natural experiment based on financial institution mergers show that this negative relation is unlikely to be driven by the endogeneity of common institutional ownership Cross‐sectional tests provide evidence that the negative relation is stronger among firms for which common institutional ownership is likely to generate a greater reduction in institutions' information acquisition and processing costs, and among firms whose severe financial misstatements are more likely to distort co‐owned peer firms' investments, supporting both mechanisms underlying our hypothesis Our findings inform the ongoing debate on the costs and benefits of common institutional ownership by highlighting an important benefit: the enhanced monitoring of financial reporting Propriete commune par des investisseurs institutionnels et gestion des resultats La presente etude examine la relation entre la gestion des resultats et la detention commune de blocs d'actions de societes paires d'un meme secteur d'activites par un ensemble d'investisseurs institutionnels (propriete commune) Cette relation est importante, compte tenu de l'enorme croissance de la propriete commune et de l'influence des detenteurs de blocs d'actions sur la communication de l'information financiere Nous presumons que la propriete commune reduit la gestion des resultats en augmentant l'efficacite du controle des institutions et en encourageant celles‐ci a internaliser l'externalite negative de la gestion des resultats d'une firme sur les investissements des firmes paires Conformement a notre hypothese, nous etablissons qu'un haut niveau de propriete commune est lie a une gestion des resultats moindre Des analyses d'une experience quasi naturelle fondee sur des fusions d'institutions financieres montrent que cette relation negative n'est pas susceptible d'etre stimulee par l'endogeneite de la propriete commune Des analyses transversales fournissent des donnees probantes indiquant que la relation negative est plus marquee chez les societes pour lesquelles la propriete commune est susceptible de generer une reduction plus importante des couts d'acquisition et de traitement de l'information assumes par les institutions, de meme que chez celles dont des declarations financieres inexactes graves sont plus susceptibles de fausser les investissements des societes paires en copropriete, a l'appui des deux mecanismes qui sous‐tendent notre hypothese Nos observations eclairent le debat en cours sur les couts et avantages de la propriete commune en mettant en lumiere un avantage important, soit un meilleur controle de la communication de l'information financiere

43 citations

Journal ArticleDOI
TL;DR: In this article, the authors investigate firms' noncompliance with ASC 740 provisions requiring financial statement disclosure of PRE and either the tax associated with PRE or a statement that calculating the tax is not practicable.
Abstract: We develop estimates of a firm's foreign earnings designated as permanently reinvested (PRE) and the unrecorded deferred tax liability (TAX) associated with PRE that are independent of whether a firm explicitly discloses this information. We then investigate firms’ noncompliance with ASC 740 provisions requiring financial statement disclosure of PRE and either the tax associated with PRE or a statement that calculating the tax is not practicable. We find that a nontrivial portion of firms do not comply with the PRE disclosure requirements and that the amounts of undisclosed PRE and the related tax are substantial in magnitude. Cross-sectional evidence suggests managers opportunistically choose when to disclose PRE and TAX and that compliance with PRE disclosure requirements increased following the American Jobs Creation Act of 2004 which increased incentives to disclose PRE.

42 citations

Journal ArticleDOI
TL;DR: This paper investigated firms' noncompliance with ASC 740 provisions that require financial statement disclosure of PRE and either the tax associated with PRE or a statement that calculating the tax is not practicable.
Abstract: We develop estimates of a firm's foreign earnings designated as permanently reinvested (PRE) and the unrecorded deferred tax liability (TAX) associated with PRE that are independent of whether a firm explicitly discloses this information. We then investigate firms' noncompliance with Accounting Standards Codification (ASC) 740 provisions that require financial statement disclosure of PRE and either the tax associated with PRE or a statement that calculating the tax is not practicable. We find that a nontrivial portion of firms do not comply with the PRE disclosure requirements and that the amounts of undisclosed PRE and the related tax are substantial in magnitude. Cross-sectional evidence suggests managers opportunistically choose when to disclose PRE and TAX and that compliance with PRE disclosure requirements increased following the American Jobs Creation Act of 2004, which increased incentives to disclose PRE. JEL Classifications: M40; M41; H25; K34. Data Availability: Data used in this stud...

33 citations


Cited by
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Journal ArticleDOI
01 May 1981
TL;DR: This chapter discusses Detecting Influential Observations and Outliers, a method for assessing Collinearity, and its applications in medicine and science.
Abstract: 1. Introduction and Overview. 2. Detecting Influential Observations and Outliers. 3. Detecting and Assessing Collinearity. 4. Applications and Remedies. 5. Research Issues and Directions for Extensions. Bibliography. Author Index. Subject Index.

4,948 citations

01 Jan 2012
TL;DR: The influence of institutional investors on myopic R&D investment behavior was discussed by Bushee as discussed by the authors, who claimed that institutional investors had a profound influence on investment behavior.
Abstract: 机构投资者作为证券市场中的重要力量,越来越受到理论界和实务界的关注。论文对宾夕法尼亚大学沃顿商学院会计学教授布赖恩-布希(Brian Bushee)的论文"The influence of institutional investors on myopic R&D investment behavior"(机构投资者对企业短视研发投资行为的影响,以下简称Bushee(1998))进行评价并提出相关的建议和研究方向。

1,246 citations

Posted Content
01 Jan 2014
TL;DR: This Review presents basic facts regarding the long-run evolution of income and wealth inequality in Europe and the United States and discusses possible interpretations and lessons for the future.
Abstract: This Review presents basic facts regarding the long-run evolution of income and wealth inequality in Europe and the United States. Income and wealth inequality was very high a century ago, particularly in Europe, but dropped dramatically in the first half of the 20th century. Income inequality has surged back in the United States since the 1970s so that the United States is much more unequal than Europe today. We discuss possible interpretations and lessons for the future.

580 citations

01 Jan 1974

240 citations