Journal of Accounting, Auditing & Finance最新文献

Abnormal CSR Performance and Auditor Litigation Risk 企业社会责任异常表现与审计师诉讼风险

Journal of Accounting, Auditing & Finance Pub Date : 2024-07-31 DOI: 10.1177/0148558x241264659

Li (Lily) Zheng Brooks, C. S. Agnes Cheng

{"title":"Abnormal CSR Performance and Auditor Litigation Risk","authors":"Li (Lily) Zheng Brooks, C. S. Agnes Cheng","doi":"10.1177/0148558x241264659","DOIUrl":"https://doi.org/10.1177/0148558x241264659","url":null,"abstract":"Recent studies provide evidence that corporate social responsibility (CSR) conscious firms are less likely to engage in high-profile corporate misconduct and be subject to SEC investigations, suggesting that auditor litigation risk may be lower for better CSR performers. However, we argue that the association between CSR performance and auditor litigation risk may not be linear for two reasons. First, for a given level of audit risk, the lower the perceived risk of material misstatement, the higher the actual detection risk. Second, ceteris paribus, an incorrectly assessed low audit risk acceptable for abnormally high CSR performance would also increase auditor’s actual detection risk. Using a matched sample analysis for the period of 2004 to 2013, this study finds that the propensity for auditors to be sued first decreases as CSR performance improves, but then increases with excessively high abnormal CSR performance. Further analyses indicate that the convexity of CSR performance on auditor detection risk arises from the inherent risk channel (client business risk, financial misreporting, and earnings management), but not from the control risk channel (internal control material weaknesses). This study provides new insights on the signaling value of CSR performance on an auditor’s litigation risk.","PeriodicalId":501201,"journal":{"name":"Journal of Accounting, Auditing & Finance","volume":"15 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141881961","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Can a Viral Blunder Damage Auditor Brand Name Reputation? Evidence From Envelopegate 病毒式传播会损害审计师的品牌声誉吗？信封门的证据

Journal of Accounting, Auditing & Finance Pub Date : 2024-07-31 DOI: 10.1177/0148558x241264431

Beau Grant Barnes, Marc Cussatt, Paul Demeré, Nancy L. Harp

{"title":"Can a Viral Blunder Damage Auditor Brand Name Reputation? Evidence From Envelopegate","authors":"Beau Grant Barnes, Marc Cussatt, Paul Demeré, Nancy L. Harp","doi":"10.1177/0148558x241264431","DOIUrl":"https://doi.org/10.1177/0148558x241264431","url":null,"abstract":"“Envelopegate” is a term used to describe PricewaterhouseCoopers’ (PwC)’s service failure that occurred during the 2017 Academy Awards ceremony (“the Oscars”). For PwC, the error resulted in immediate and unprecedented negative publicity, which was driven by a viral response on social media and other online media platforms. Thus, Envelopegate offers a unique opportunity to observe the potential spillover effects of negative viral events on the brand name reputation of an audit firm. Using intraday and daily client stock returns, we find a significant negative market response for PwC audit clients within the first minute of trading on the day following Envelopegate. The negative market effect is driven by clients with higher demand for auditor reputation, but we find no evidence that results are driven by any specific audit market region. Thus, our research underscores the susceptibility of an audit firm’s brand value to negative viral events, even when the event is unrelated to audit services. The findings of this study should be of interest to scholars exploring how audit firms form and maintain reputations as well as to professional service firms that engage in highly visible client services as part of their strategic efforts to enhance brand value.","PeriodicalId":501201,"journal":{"name":"Journal of Accounting, Auditing & Finance","volume":"48 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141863621","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Tension in Financial Reporting: Reacting to a Peer Bankruptcy Announcement 财务报告中的紧张关系：应对同行破产公告

Journal of Accounting, Auditing & Finance Pub Date : 2024-07-24 DOI: 10.1177/0148558x241264897

Mahmoud Delshadi, Ahmad Hammami, Michel Magnan

{"title":"Tension in Financial Reporting: Reacting to a Peer Bankruptcy Announcement","authors":"Mahmoud Delshadi, Ahmad Hammami, Michel Magnan","doi":"10.1177/0148558x241264897","DOIUrl":"https://doi.org/10.1177/0148558x241264897","url":null,"abstract":"We investigate if and how a peer’s bankruptcy affects financial reporting by other firms within the industry. Prior research documents that the bankruptcy filing of a peer firm has negative capital market effects on other firms within the industry (lower stock market value and higher cost of debt). We argue that firms within an industry experiencing peer bankruptcies modify their financial reporting to mitigate such negative capital market effects. However, tension arises as to whether such modification is toward more conservative accounting or the opposite. Using a large sample of firms from 1980 to 2018, we find that following a peer firm bankruptcy filing, other firms within the industry exhibit a rise in conditional conservatism in their financial reporting. Our findings are robust to a battery of tests including the exclusion of distressed industries, the 2000 dot-com crash period, and the 2008 financial crisis period as well as employing an alternative proxy for conditional conservatism. The results are not significant for placebo bankruptcies 1 and 2 years before actual bankruptcies. Further analyses show that the spillover effects are more pronounced for firms in homogeneous industries, which exhibit higher leverage, with strong governance mechanisms, and in industries that experience strong market reaction following peer bankruptcy announcements. We also find that the bankruptcy filing of larger and older firms leads to stronger spillover effects.","PeriodicalId":501201,"journal":{"name":"Journal of Accounting, Auditing & Finance","volume":"55 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141776934","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Carbon Disclosure and Common Ownership 碳信息披露与共同所有权

Journal of Accounting, Auditing & Finance Pub Date : 2024-07-24 DOI: 10.1177/0148558x241264668

Bobae Choi, Doowon Lee, Le Luo

引用次数: 0

Lenders’ Environmental Monitoring: Evidence From Environmental Covenants in Private Loan Contracts 贷款人的环境监督：私人贷款合同中的环境契约证据

Journal of Accounting, Auditing & Finance Pub Date : 2024-06-25 DOI: 10.1177/0148558x241257973

Ruby Lee, Mark Zakota

引用次数: 0

The Role of Capital Expenditure Forecasts in Debt Contracting 资本支出预测在债务契约中的作用

Journal of Accounting, Auditing & Finance Pub Date : 2024-05-21 DOI: 10.1177/0148558x241250107

Ashiq Ali, Zhongwen Fan

引用次数: 0

Do Capital Asset and Labor Conditions Matter in Loan Pricing? Evidence From Capital and Labor Redeployability 资本资产和劳动力条件在贷款定价中重要吗？来自资本和劳动力可调配性的证据

Journal of Accounting, Auditing & Finance Pub Date : 2024-05-06 DOI: 10.1177/0148558x241244842

Yangyang Chen, Jeffrey Ng, Chong Wang

引用次数: 0

The Role of Internal Control Disclosure in Financial Reporting Precision and the Quality of Audited Financial Reports 内部控制披露在财务报告精确性和经审计财务报告质量中的作用

Journal of Accounting, Auditing & Finance Pub Date : 2024-04-26 DOI: 10.1177/0148558x241245171

Mingcherng Deng, Xiaoyan Wen

引用次数: 0

Do Ethnic Minority Audit Partners Face Discrimination? Evidence From the Australian Audit Market 少数族裔审计合伙人是否面临歧视？来自澳大利亚审计市场的证据

Journal of Accounting, Auditing & Finance Pub Date : 2024-03-19 DOI: 10.1177/0148558x241230117

Mara Cameran, Domenico Campa, Claudia Gabbioneta, Angela Pettinicchio

{"title":"Do Ethnic Minority Audit Partners Face Discrimination? Evidence From the Australian Audit Market","authors":"Mara Cameran, Domenico Campa, Claudia Gabbioneta, Angela Pettinicchio","doi":"10.1177/0148558x241230117","DOIUrl":"https://doi.org/10.1177/0148558x241230117","url":null,"abstract":"The professional literature has provided evidence of discrimination against ethnic minority professionals in a number of research contexts, including law, architecture, construction, and health care. However, research on ethnicity-based discrimination in the accounting profession has been sparser and has generally relied on ethnic minorities’ perceptions of discrimination rather than actual discrimination. In this study, we complement and extend this research by investigating whether ethnic minority audit partners are associated with lower audit fees than nonethnic minority audit partners. We also consider whether the association between ethnicity and audit fees depends on the status of the audit firm in which audit partners work. We find that ethnic minority audit partners are associated with lower audit fees and that this holds true only when they work in lower-status audit firms. Supplementary analyses carried out on our data suggest that discrimination is more likely to be performed by audit clients than by audit firms as we do not find evidence that audit firms systematically and selectively allocate ethnic minority audit partners to clients with specific characteristics (e.g., potentially less lucrative clients). Our study contributes to the literature on ethnicity-based discrimination in the accounting profession, to the literature on professional stereotypes, and to the audit pricing literature.JEL Classification: C33, J71, M42.","PeriodicalId":501201,"journal":{"name":"Journal of Accounting, Auditing & Finance","volume":"30 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-03-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140170354","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Can Common Institutional Investors in Supply Chains Decode the Bullwhip Effect? Evidence From Order Backlog Mispricing 供应链中的普通机构投资者能否破解牛鞭效应？订单积压错误定价的证据

Journal of Accounting, Auditing & Finance Pub Date : 2024-03-01 DOI: 10.1177/0148558x241229508

Jengfang Chen, Sungsoo Kim, Dhinu Srinivasan, Yaou Zhou

{"title":"Can Common Institutional Investors in Supply Chains Decode the Bullwhip Effect? Evidence From Order Backlog Mispricing","authors":"Jengfang Chen, Sungsoo Kim, Dhinu Srinivasan, Yaou Zhou","doi":"10.1177/0148558x241229508","DOIUrl":"https://doi.org/10.1177/0148558x241229508","url":null,"abstract":"This paper examines the role of supply chain common institutional investors (i.e., who own stocks of both upstream suppliers and their downstream customers in a supply chain) in the valuation of upstream supplier firms’ order backlog information. Based on the theory and evidence that backlog orders’ predictive power is diminished further in a supply chain due to the bullwhip effect, we hypothesize and find that the overpricing of order backlog is mainly driven by upstream rather than downstream firms. More importantly, we use both hedge portfolio methods and Fama-MacBeth regressions to show that common institutional investors in a supply chain can utilize their knowledge to better incorporate the bullwhip effect and mitigate the magnitude of order backlog mispricing. Further, we find that the overpricing of second-tier suppliers’ backlog orders and thus, the role of supply chain common institutional investors is more pronounced during expansion periods than during recession periods. Overall, we highlight the role of institutional supply chain knowledge in improving pricing efficiencies of complex supply chain dynamics.","PeriodicalId":501201,"journal":{"name":"Journal of Accounting, Auditing & Finance","volume":"15 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140019262","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0