Comment and Response to “Do Client Characteristics Really Drive the Big N Audit Quality Effect? New Evidence from Propensity Score Matching” by Mark DeFond, David H. Erkens, and Jieying Zhang

2017 ◽  
Vol 63 (11) ◽  
pp. 3650-3653 ◽  
Keyword(s):  
Propensity Score ◽  
Propensity Score Matching ◽  
Audit Quality ◽  
Client Characteristics ◽  
New Evidence

Audit Quality and Specialist Tenure

2018 ◽  
Vol 94 (3) ◽  
pp. 113-147 ◽  
Author(s):  
Jennifer J. Gaver ◽  
Steven Utke
Keyword(s):  
Propensity Score ◽  
Propensity Score Matching ◽  
Audit Quality ◽  
Discretionary Accruals ◽  
Data Availability ◽  
Client Characteristics ◽  
Industry Specialization ◽  
Auditor Industry Specialization ◽  
Big 4 ◽  
Jel Classifications

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 discretionary accruals, income-increasing discretionary accruals, and book-tax differences. Our results, based on a sample of Big 4 audit clients from 2003–2015, indicate that auditors who have only recently gained the specialist designation 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 prior research that finds no effect of specialization after propensity score matching, we find that seasoned specialists generally produce higher-quality audits than other auditors even after matching. This suggests that the audit quality effect associated with seasoned industry specialist auditors is not due to differences in client characteristics. JEL Classifications: M42. Data Availability: Data used in this study are available from public sources identified in the text.

Do Big 4 Auditors Provide Higher Audit Quality after Controlling for the Endogenous Choice of Auditor?

2014 ◽  
Vol 33 (4) ◽  
pp. 197-219 ◽  
Author(s):  
John Daniel Eshleman ◽  
Peng Guo
Keyword(s):  
Propensity Score ◽  
Propensity Score Matching ◽  
Audit Quality ◽  
Data Availability ◽  
Accounting Restatements ◽  
Big 4 ◽  
Audit Firms ◽  
Weak Evidence ◽  
Matching Procedure ◽  
Jel Classifications

SUMMARY: Recent research suggests that Big 4 auditors do not provide higher audit quality than other auditors, after controlling for the endogenous choice of auditor. We re-examine this issue using the incidence of accounting restatements as a measure of audit quality. Using a propensity-score matching procedure similar to that used by recent research to control for clients' endogenous choice of auditor, we find that clients of Big 4 audit firms are less likely to subsequently issue an accounting restatement than are clients of other auditors. In additional tests, we find weak evidence that clients of Big 4 auditors are less likely to issue accounting restatements than are clients of Mid-tier auditors (Grant Thornton and BDO Seidman). Taken together, the evidence suggests that Big 4 auditors do perform higher quality audits. JEL Classifications: M41, M42 Data Availability: All data are publicly available from sources identified in the text.

L’impatto della laurea magistrale sui redditi da lavoro

Sinappsi ◽  
2021 ◽  
Vol 11 (1) ◽  
pp. 50
Author(s):  
Valentina Ferri ◽  
Giuliana Tesauro
Keyword(s):  
Sensitivity Analysis ◽  
Propensity Score ◽  
Propensity Score Matching ◽  
Selection Bias ◽  
Master's Degree ◽  
Bachelor's Degree ◽  
Sulla Base ◽  
Average Treatment ◽  
New Evidence ◽  
Italian National Institute

L’articolo è finalizzato a valutare l’impatto del conseguimento della laurea magistrale sui redditi da lavoro. Sulla base dei dati dell’indagine sull’inserimento professionale dei laureati (Istat), effettuiamo anzitutto la stima dei redditi da lavoro con correzione à la Heckman. Successivamente stimiamo l’effetto medio del Trattamento sui trattati (ATET) attraverso il propensity score matching (PSM). Concludiamo con i test di sensitività basati sulla simulazione con calibrated confounders. -------------------------------------------------------------------------------------------------------------------- The paper provides new evidence on Italian graduates’ earnings in their early careers comparing wages for workers who had a master’s degree with those for workers who had a bachelor’s degree four years after graduation. The data used in this article come from the Italian National Institute of Statistics. In order to mitigate a potential selection bias into treatment (master degrees), we conducted a propensity score matching (PSM) analysis and we estimate the Average Treatment on the Treated. Further we perform a sensitivity analysis based on the simulation with calibrated confounders.

scholarly journals Drivers of green bond issuance and new evidence on the “greenium”

2021 ◽  
Vol 11 (1) ◽  
pp. 1-24
Author(s):  
Kristin Ulrike Löffler ◽  
Aleksandar Petreski ◽  
Andreas Stephan
Keyword(s):  
Propensity Score ◽  
Propensity Score Matching ◽  
Bond Markets ◽  
Exact Matching ◽  
Secondary Markets ◽  
Coarsened Exact Matching ◽  
Secondary Bond ◽  
New Evidence

AbstractThis paper examines whether a premium for green bonds, called “greenium”, found in previous studies, exists in primary and secondary bond markets. Using a universe of about 2000 green and 180,000 non-green bonds from 650 international issuers, we apply both propensity score matching and coarsened exact matching to determine a sample of conventional bonds that is most similar to the sample of green bonds. We find that green bonds have larger issue sizes and lower rated issuers, on average, compared to conventional bonds. The estimates show that the yield for green bonds is, on average, 15–20 basis points lower than that of conventional bonds, both on primary and secondary markets, thus a “greenium” exists.

Besondere Förderung von Kern- kompetenzen an Spezialgymnasien?

2010 ◽  
Vol 24 (1) ◽  
pp. 5-22 ◽  
Author(s):  
Jürgen Baumert ◽  
Michael Becker ◽  
Marko Neumann ◽  
Roumiana Nikolova
Keyword(s):  
Propensity Score ◽  
Propensity Score Matching

Der vorliegende Beitrag geht der Frage nach, ob Schülerinnen und Schüler, die nach der vierten Klasse in Berlin in ein grundständiges Gymnasium wechseln, in Abhängigkeit vom Profil des besuchten Gymnasiums im Vergleich zu Grundschülern mit vergleichbaren Lernvoraussetzungen unterschiedliche Lernzuwächse im Leseverständnis, in Mathematik und Englisch erreichen. Auf der Datengrundlage der ELEMENT-Studie wurde die Leistungsentwicklung von Schülerinnen und Schülern an grundständigen Gymnasien (N = 1758) und Grundschulen (N = 3169) während der 5. und 6. Jahrgangsstufe mithilfe von Propensity Score Matching-Analysen (PSM) modelliert. Nach Kontrolle von leistungsrelevanten Unterschieden zwischen den Schülergruppen am Ende der 4. Jahrgangsstufe zeigten sich für das Leseverständnis am Ende der 6. Klasse keine statistisch signifikanten Unterschiede. Für die Mathematikleistung ließen sich Unterschiede lediglich zugunsten eines grundständigen Gymnasiums, das zum Untersuchungszeitpunkt noch kein spezifisches Profil entwickelt hatte, nachweisen. In der Domäne Englisch, in der die curricularen Unterschiede zwischen den Schulzweigen stärker akzentuiert sind, wurden positive Ergebnisse im Vergleich zu den Grundschulen für die so genannten Schnellläuferzüge, die englisch-bilingualen Klassen und das grundständige Gymnasium ohne spezifisches Profil ermittelt. Die Lernstände am Ende der 6. Klasse in den altsprachlichen Gymnasien fielen dagegen im Vergleich zu den Grundschulen geringer aus. Die Befunde widersprechen der Annahme, dass mit dem frühen Übergang auf ein grundständiges Gymnasium automatisch eine besondere Förderung der Lesefähigkeit und des mathematischen Verständnisses besonders leistungsfähiger Schülerinnen und Schüler erreicht werde. Die Ergebnisse zu den Englischleistungen weisen hingegen darauf hin, dass Unterschiede in der Leistungsentwicklung auftreten können, sofern die Aufteilung auf Schulen mit unterschiedlichen Bildungsprogrammen mit curricularen Unterschieden im Unterricht einhergeht. Methodische und inhaltliche Implikationen der Befunde und Grenzen ihrer Generalisierbarkeit werden diskutiert.

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