Journal ArticleDOI
Auditor size and audit quality
TLDR
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.About:
This article is published in Journal of Accounting and Economics.The article was published on 1981-12-01. It has received 4969 citations till now. The article focuses on the topics: Joint audit & Audit plan.read more
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Causes and Consequences of Earnings Manipulation: An Analysis of Firms Subject to Enforcement Actions by the SEC*
TL;DR: In this article, the authors investigate the extent to which the earnings manipulations can be explained by earnings management hypotheses and the relation between earnings manipulation and weaknesses in firms' internal governance structures, and the capital market consequences experienced by firms when the alleged earnings manipulation are made public.
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Agency Problems and Residual Claims
Eugene F. Fama,Michael C. Jensen +1 more
TL;DR: Jensen and Fama as mentioned in this paper developed a set of propositions that explaim the special features of the residual claims of different organizational forms as efficient approaches to controlling agency problems and explained the survival of organizational forms in specific activities.
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Two Agency-Cost Explanations of Dividends
TL;DR: In this article, the authors consider the problem of aligning managers' interests with those of investors and offer agency-cost explanations of dividends, and conclude that "these two lines of inquiry rarely meet." Yet logically any dividend policy should be designed to minimize the sum of capital, agency and taxation costs.
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The Effect of Audit Quality on Earnings Management
TL;DR: In this article, the authors examined the relation between audit quality and earnings management and found that clients of non-Big Six auditors report discretionary accruals that increase income relatively more than the discretionary accumruals reported by clients of big six auditors.
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Earnings quality in uk private firms: comparative loss recognition timeliness
Ray Ball,Lakshmanan Shivakumar +1 more
TL;DR: In this article, the authors hypothesize that private company financial reporting nevertheless is of lower quality due to different market demand, regulation notwithstanding, and a large UK sample supports this hypothesis, using Basu's (1997) measure of timely loss recognition and a new accruals-based method.
References
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The Nature of the Firm
TL;DR: In this paper, it is shown that a definition of a firm may be obtained which is not only realistic in that it corresponds to what is meant by a firm in the real world, but is tractable by two of the most powerful instruments of economic analysis developed by Marshall, the idea of the margin and that of substitution.
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The Market for “Lemons”: Quality Uncertainty and the Market Mechanism
TL;DR: In this paper, the authors present a struggling attempt to give structure to the statement: "Business in under-developed countries is difficult"; in particular, a structure is given for determining the economic costs of dishonesty.
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Production, Information Costs, and Economic Organization
Armen A. Alchian,Harold Demsetz +1 more
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Production, information costs, and economic organization
Armen A. Alchian,Harold Demsetz +1 more
TL;DR: In this paper, the authors present a set of reprint articles for which IEEE does not hold copyright. Full text is not available on IEEE Xplore for these articles, but full text can be found on the Internet Archive.
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Vertical Integration, Appropriable Rents, and the Competitive Contracting Process
TL;DR: In this paper, the potential of post-contractural apportunistic behavior for improving market efficiency through intra-firm rather than interfirm transactions is examined under the assumption that vertical costs will increase less than contracting costs as specialized assets and appropriable quasi rents increase.