Journal ArticleDOI
Audit Committee Composition and Auditor Reporting
Joseph V. Carcello,Terry L. Neal +1 more
TLDR
In this article, the authors examined the relation between the composition of financially distressed firms' audit committees and the likelihood of receiving going-concern reports for firms experiencing financial distress during 1994 and found that the greater the percentage of affiliated directors on the audit committee, the lower the probability the auditor will issue a going concern report.Abstract:
This study examines the relation between the composition of financially distressed firms' audit committees and the likelihood of receiving going‐concern reports For firms experiencing financial distress during 1994, we find that the greater the percentage of affiliated directors on the audit committee, the lower the probability the auditor will issue a going‐concern report These results support regulators' concern about financial‐reporting quality and the recent calls for more independent audit committeesread more
Citations
More filters
Journal ArticleDOI
A Review of Archival Auditing Research
Mark L. DeFond,Jieying Zhang +1 more
TL;DR: In this article, the authors define higher audit quality as greater assurance of high financial reporting quality, and they provide a framework for systematically evaluating their unique strengths and weaknesses, including the role of auditor and client competency in driving audit quality.
Journal ArticleDOI
Audit Committee Characteristics and Restatements
TL;DR: In this article, the impact of certain audit committee characteristics identified by the Blue Ribbon Committee on Improving the Effectiveness of Corporate Audit Committees (BRC) on the likelihood of financial restatement was examined.
Journal ArticleDOI
Board Characteristics, Accounting Report Integrity, and the Cost of Debt
TL;DR: In this article, the authors examined the impact of audit committee characteristics on corporate yields spreads as audit committees are the direct mechanism that boards use to monitor the financial accounting process and found that fully independent audit committee are associated with a significantly lower cost of debt financing.
Journal ArticleDOI
A review of archival auditing research
Mark L. DeFond,Jieying Zhang +1 more
TL;DR: In this article, the authors define higher audit quality as greater assurance of high financial reporting quality, and they provide a framework for systematically evaluating their unique strengths and weaknesses, including the role of auditor and client competency in driving audit quality.
Journal ArticleDOI
The Association between Corporate Boards, Audit Committees, and Management Earnings Forecasts: An Empirical Analysis
Irene Karamanou,Nikos Vafeas +1 more
TL;DR: In this article, the authors study how corporate boards and audit committees are associated with voluntary financial disclosure practices, proxied here by management earnings forecasts, and find that in firms with more effective board and audit committee structures, managers are more likely to make or update an earnings forecast, and their forecast is less likely to be precise, it is more accurate, and it elicits a more favorable market response.
References
More filters
Book
Limited-Dependent and Qualitative Variables in Econometrics
TL;DR: In this article, the authors present a survey of the use of truncated distributions in the context of unions and wages, and some results on truncated distribution Bibliography Index and references therein.
Journal ArticleDOI
Auditor size and audit quality
TL;DR: In this paper, the authors argue that audit quality is not independent of audit firm size, even when auditors initially possess identical technological capabilities, and when incumbent auditors earn client-specific quasi-rents, auditors with a greater number of clients have more to lose by failing to report a discovered breach in a particular client's records.
Posted Content
An Empirical Analysis of the Relation between Board of Director Composition and Financial Statement Fraud
TL;DR: In this paper, the authors empirically tested the prediction that the inclusion of larger proportions of outside members on the board of directors significantly reduces the likelihood of financial statement fraud and found that no-fraud firms have boards with significantly higher percentages of outside board members than fraud firms.
Journal ArticleDOI
Methodological issues related to the estimation of financial distress prediction models
TL;DR: In this paper, the authors examined conceptually and empirically two estimation biases which can result when financial distress models are estimated on non-random samples and showed that these biases can result in biased parameter and probability estimates if appropriate estimation techniques are not used.
Journal ArticleDOI
Corporate Governance and the Board of Directors: Performance Effects of Changes in Board Composition
TL;DR: The board of directors is an important part of the governance structure of large business corporations as mentioned in this paper, and it has the power to hire, fire, and compensate senior management teams, which serves to resolve conflicts of interest among decisionmakers and residual risk bearers.