Hardening Soft Information: Analyst Conservative Bias

2017 ◽  
Author(s):  
Kerry Xiao ◽  
Amy Zang
Keyword(s):  
Soft Information ◽  
Conservative Bias

Fusion of Hard and Soft Information in Nonparametric Density Estimation

2015 ◽  
Author(s):  
Johannes O. Royset ◽  
Roger J-B. Wets
Keyword(s):  
Density Estimation ◽  
Nonparametric Density Estimation ◽  
Soft Information

Soft Information in the Subprime Mortgage Market

2012 ◽  
Author(s):  
Kanis Saengchote
Keyword(s):  
Mortgage Market ◽  
Soft Information ◽  
Subprime Mortgage

Making Sense of Soft Information: Interpretation Bias and Ex-Post Lending Outcomes

2017 ◽  
Author(s):  
Dennis Campbell ◽  
Maria Loumioti ◽  
Regina Wittenberg Moerman
Keyword(s):  
Interpretation Bias ◽  
Soft Information ◽  
Making Sense ◽  
Ex Post ◽  
Information Interpretation

Seasoned Equity Issues With 'Soft' Information: Theory and Empirical Evidence

2005 ◽  
Author(s):  
Yawen Jiao ◽  
Thomas J. Chemmanur
Keyword(s):  
Information Theory ◽  
Empirical Evidence ◽  
Soft Information ◽  
Equity Issues

Earnings Management, Litigation Risk, and Asymmetric Audit Fee Responses

2006 ◽  
Vol 25 (1) ◽  
pp. 85-98 ◽  
Author(s):  
Lawrence J. Abbott ◽  
Susan Parker ◽  
Gary F. Peters
Keyword(s):  
Earnings Management ◽  
High Growth ◽  
Audit Fees ◽  
Discretionary Accruals ◽  
Litigation Risk ◽  
Audit Fee ◽  
Growth Firms ◽  
Price Earnings Ratio ◽  
Year 2000 ◽  
Conservative Bias

This study examines the association between audit fees and earnings management, using publicly available fee data. We hypothesize that, due to asymmetric litigation effects, audit fees decrease (increase) with a client's risk of income-decreasing (increasing) earnings management risk. We also hypothesize that the positive relation between income-increasing earnings management risk and audit fees is heightened for clients that are high-growth firms. We test our hypotheses with a sample of 429 public, non-regulated, Big 5 audited companies, using fee data for the year 2000. We find that downward earnings management risk, as estimated by negative (i.e., income-decreasing) discretionary accruals, is associated with lower audit fees. We also document that upward earnings management risk, as estimated by positive discretionary accruals, is associated with higher audit fees and that the interaction of this risk with an industry-adjusted price-earnings ratio has an incrementally significant, positive effect on fees. We interpret our findings as consistent with a conservative bias on the part of auditors. The conservative bias arises from asymmetric litigation risk in which income-increasing discretionary accruals exhibit greater expected litigation costs than income-decreasing discretionary accruals (Simunic and Stein 1996; Palmrose and Scholz 2004; Palmrose et al. 2004; Richardson et al. 2002; Heninger 2001).

scholarly journals The impact of soft information and institutional quality on foreign bank efficiency – Evidence from ASEAN-5 countries

2021 ◽  
Vol 74 ◽  
pp. 23-32
Author(s):  
Sok-Gee Chan ◽  
Bora Aktan ◽  
Bruce Burton ◽  
Eric H.Y. Koh
Keyword(s):  
Institutional Quality ◽  
Foreign Bank ◽  
Soft Information ◽  
Bank Efficiency ◽  
The Impact
Sign in / Sign up

Export Citation Format

Share Document