age assessment rai et al 2009 2010 willems 2001

... then take the predicted values from the first stage as regressors in the second stage along with the same independent variables used in the first stage excluding the instrumental variables Though ... Firms with a Combined 0.90 182 J Dahya et al./The Financial Review 44 (2009) 179–212 J Dahya et al./The Financial Review 44 (2009) 179–212 183 significant) improvement in operating or stock price ... 188 J Dahya et al./The Financial Review 44 (2009) 179–212 following the issuance of the Cadbury Report.6 A similar marked increase in the percentage of outside directors (from 30% to 48%) and...

Ngày tải lên: 02/01/2015, 17:34

... standards, it will refer the case to relevant government agencies for 362 Contemporary Accounting Research CAR Vol. 26 No. 2 (Summer 2009) administrative or punitive actions, which range ... conflicts of interest between management and outside stakeholders. Due to the conflicts of inter- est and asymmetric information, financial statements prepared by management are audited by a third ... earnings management, and thus earnings quality, in the accounting literature Mandatory Audit Partner Rotation, Audit Quality, and Market Perception 363 CAR Vol. 26 No. 2 (Summer 2009) (e.g.,...

Ngày tải lên: 06/01/2015, 19:41

... percentage of total staff; INDBILL ϭ total fees per individual staff member (total fees / total staff); SEC% ϭ percentage of total fees from SEC clients / engagements; AUDIT% ϭ percentage of ... reports, but not others Firms having weaknesses related to personnel management (PERSNL) and/or engagement performance (ENGAGE) are more likely to experience audit failure (p ϭ 049 and p ϭ 014, ... percentage of total fees coming from two largest clients; CLNTRSK ϭ percentage of total fees from financial institutions or entertainment companies; OWNER% ϭ number of partners / owners as percentage...

Ngày tải lên: 06/01/2015, 19:41

... 3 years of experience as a Manager; college degree; passed the CPA exam Engagement Partner High responsibility for engagement; interaction exclusively with top management of client Works in the ... experience as a Senior Manager; college degree; passed the CPA exam Lead Partner Ultimately responsible for engagement; signs off on the engagement; interaction exclusively with top management of client ... passed the CPA exam Senior Manager Normally equivalent to Manager, with slightly more supervision and review responsibilities; interaction mainly with client’s top management Works in the office...

Ngày tải lên: 06/01/2015, 19:44

... going concern opinion (Anandarajan, La Salle & Anandarajan, 2001). In an experimental setting, Dopuch, King, and Schwartz (2001) found the auditors are less likely to impose a biased report ... reduce their audit fees in the early year of engagement to attract clients. The practice of low-balling requires audit firm to seek for longer audit engagement with their clients so that they could ... independence. Auditor’s independence was impaired only in the early year of audit engagement and not for the whole audit engagement. (Geiger & Raghunandan, 2002) Similarly, Stice (1991) found the...

Ngày tải lên: 06/01/2015, 19:44

... from the greater incentive that managers of low-value firms have to obtain protection from the risk of removal or its consequences An incentive on the part of managers of low-value firms to adopt ... Ownership, Control, and Management Affect Firm Value? Journal of Financial Economics, 80, 385–417 Bates, T., D Becher, and M Lemmon 2008 Board Classification and Managerial Entrenchment: Evidence ... Short-Term Managerial Objectives Lead to Under- or OverInvestment in Long-Term Projects? Journal of Finance, 48, 719-729 Bertrand, M and S Mullainathan 1999 Is There Discretion in Wage Setting?...

Ngày tải lên: 06/01/2015, 19:46

... data Volume 17 Number May 2009 CORPORATE GOVERNANCE 340 CORPORATE GOVERNANCE THROUGH CROSSLISTING: THE BONDING HYPOTHESIS Legal Bonding In the agency-theory literature, an agent might elect to post ... enforcement agency in the case of foreign firms trading on US exchanges The SEC relies on the cooperation of foreign law enforcement agencies in spite of the fact that many of these agencies are ... Analysis, 37: 495–521 Bancel, F and Mittoo, U (2001) European managerial perceptions of the net benefits of foreign stock listings, European Financial Management, 33: 213–36 Benos, E and Weisbach,...

Ngày tải lên: 06/01/2015, 19:49

... for Directors Manager and director fees Form of manager and director fee payment (cash, stock, stock options) Rationale of manager and director fees Information on whether manager and director ... measure of firm's leverage and closeness to debt covenant restrictions High leverage and the implied financial risk should be associated with lower dividend payout as it discourages both paying out ... and Hart (1980) point out that the dividend payouts mitigate agency conflicts by reducing the amount of free cash flow available to managers, who not necessarily act in the best interest of shareholders...

Ngày tải lên: 02/01/2015, 17:33

... factor directly restrains the degree of its earnings management The ratio of total liabilities The Liability Contract to total assets Hypothesis of earnings management The sum of management The Dividend ... percentage of independent directors on board, the more possibility the board can restrains earnings management activities in the company Companies with an independent director percentage higher ... Variable definitions and calculation 3.2.1 Appraisal of the quality of financial reporting In this paper, we used items of earnings management to appraise the quality of accounting earnings information...

Ngày tải lên: 02/01/2015, 17:34

... earnings management should reflect reliable results Discretionary Accruals as a Proxy for Earnings Management Discretionary accruals are commonly used as a proxy for earnings management, and ... desire to limit their losses on the current engagement as a result of the competitive practice of low-balling and to be able to ensure continuity of the engagement Thus, it can be argued that a client ... non-audit services in the early years of an engagement and persuade the auditor not to conduct in-depth analyses which may uncover earnings management It is also possible that the auditor may...

Ngày tải lên: 06/01/2015, 19:42

... Because age is correlated with tenure, we also considered the square of age (AGESQ) as an additional control variable in regressions involving squared tenure The inclusion of both age and age squared ... earnings management following SOX proves to be permanent, then implementation of mandatory rotation to constrain earnings management is unnecessary While we address issues of earnings management, ... management subsequent to the passage of SOX (Bartov and Cohen 2006; Cohen, et al 2007) This change is consistent with either increased audit quality or a decline in managers’ attempts to manage...

Ngày tải lên: 06/01/2015, 19:42

... for Directors Manager and director fees Form of manager and director fee payment (cash, stock, stock options) Rationale of manager and director fees Information on whether manager and director ... measure of firm's leverage and closeness to debt covenant restrictions High leverage and the implied financial risk should be associated with lower dividend payout as it discourages both paying out ... and Hart (1980) point out that the dividend payouts mitigate agency conflicts by reducing the amount of free cash flow available to managers, who not necessarily act in the best interest of shareholders...

Ngày tải lên: 06/01/2015, 19:47

... company Agency theory suggests that outsiders are important monitors of management and providers of relevant expertise central to the effective resolution of agency problems between managers and ... dominated ownership structure means that the classic agency problem stemming from the separation of ownership (shareholders) and control (managers) is rarely observed in Hong Kong However, this ... than transparent shareholding structure, potentially leading to a unique agency conflict between owners who are also managers (insiders) and minority shareholders (outsiders) This also means that...

Ngày tải lên: 02/01/2015, 17:33

... costs (e.g., costs incurred by the client in a new audit engagement, including increased risk of audit failure) and agency costs (forgone agency benefits stemming from greater auditor independence) ... chose to follow AA Agency Costs Consistent with Jensen and Meckling (1976), we define agency costs as monitoring expenditures by the principal, bonding expenditures by the agent, and loss in welfare ... experienced by the principal due to the agent not acting in the principal’s best interest Auditing is a means of reducing agency costs through the monitoring of the agent by an independent third-party...

Ngày tải lên: 06/01/2015, 19:41

... minimum to replace the Key Audit Partners of the Engagement Team (including the Engagement Partner) within seven years of appointment to the Engagement Team The replaced Key Audit Partners should ... the development of SMEs – an issue that was common to the agenda of both political parties since early 2001 ´ (Expansiondirecto, March 12, 2001) 20 For instance, the 1985 Spanish Tax Act enabled ... have not been compromised by having their work agendas dictated to or manipulated by the professional accounting firms and bodies (Mitchell et al., 2001) Regulatory reform is too significant an issue...

Ngày tải lên: 06/01/2015, 19:41

... indicating that the council-manager form of government is associated with higher report quality Growth measures the average annual growth in total revenue on a percentage basis for the period 1998-2003 ... one (zero otherwise) if the entity has council manager form of government Growth measures average annual growth in total revenue on a percentage basis for the period 1998-2003 LnRev is the natural ... assess the effects of rotation on audit quality This market has two key advantages for examining rotation The first advantage is that some jurisdictions in Florida require rotation of auditors and...

Ngày tải lên: 06/01/2015, 19:43

... company Agency theory suggests that outsiders are important monitors of management and providers of relevant expertise central to the effective resolution of agency problems between managers and ... dominated ownership structure means that the classic agency problem stemming from the separation of ownership (shareholders) and control (managers) is rarely observed in Hong Kong However, this ... than transparent shareholding structure, potentially leading to a unique agency conflict between owners who are also managers (insiders) and minority shareholders (outsiders) This also means that...

Ngày tải lên: 06/01/2015, 19:46

... with managerial equity ownership because managerial ownership brings the objectives of shareholders and managers in line with each other Unlike the United States, however, where large managerial ... highest overall rating, with an average of 4.50 There are, however, only three firms in this industry Japanese banks have the lowest governance rating, with an average rating of 2.62 Given the diversity ... table reports the number of firms in each industry sector and the average global overall ratings for each industry sector Averages are computed from the August 2004 evaluation 240 Global Home OR...

Ngày tải lên: 06/01/2015, 19:48

... obtained during ascent The advantage is of course that there is no need to deploy and maintain the moored sound sources required for acoustic navigation The disadvantage is that one loses considerable ... error is generally constrained by checking the clock just prior to deployment, and by knowing the scheduled radio transmission times after the float surfaces Since each message received at the satellite ... time we also need to know the average speed of sound In principle one can use acoustical models of the ocean, but in most cases that the author is aware of the average speed of sound is determined...

Ngày tải lên: 05/05/2014, 14:42