scholarly journals Do Audit Firms Care about Media Coverage? An Investigation of Audit Firm Response to News Coverage

2020 ◽  
Author(s):  
Elizabeth N. Cowle ◽  
Caleb Rawson ◽  
Stephen P. Rowe
Keyword(s):  
Media Coverage ◽  
News Coverage ◽  
Audit Firm ◽  
Audit Firms ◽  
Firm Response

How a Shared Auditor Affects Firm-Pair Comparability: Implications of Both Firm and Individual Audit Styles

2020 ◽  
Vol 39 (3) ◽  
pp. 133-160
Author(s):  
Lili Jiu ◽  
Bin Liu ◽  
Yuanyuan Liu
Keyword(s):  
Accounting Standards ◽  
Financial Statement ◽  
Professional Judgment ◽  
Audit Process ◽  
Personal Style ◽  
Audit Firm ◽  
Market Participants ◽  
Audit Firms ◽  
Audit Reports ◽  
Practical Implications

SUMMARY In this study, we examine the roles of audit firms and individual auditors in improving financial statement comparability. We conduct the study in the Chinese setting, in which the identities of signing auditors are revealed in audit reports and accounting standards are principle based. After controlling for audit firm style, we find that firm pairs with shared signing auditors have incrementally greater comparability. Our results indicate that individual auditors exhibit their own personal style in implementing accounting standards and exercising professional judgment in the audit process. Overall, our study underscores the association between individual auditors and comparability, with practical implications for market participants and policymakers.

An Empirical Investigation of IPO Underpricing and the Change to the LLP Organization of Audit Firms

2004 ◽  
Vol 23 (1) ◽  
pp. 53-67 ◽  
Author(s):  
Steven R. Muzatko ◽  
Karla M. Johnstone ◽  
Brian W. Mayhew ◽  
Larry E. Rittenberg
Keyword(s):  
Initial Public Offering ◽  
Audit Quality ◽  
Limited Liability ◽  
Litigation Risk ◽  
Ipo Underpricing ◽  
Audit Firm ◽  
Legal Structure ◽  
Audit Firms ◽  
Public Offering

This paper examines the relationship between the 1994 change in audit firm legal structure from general partnerships to limited liability partnerships (LLPs) on underpricing in the initial public offering (IPO) market. The change in legal structure of audit firms reduces an audit firm's wealth at risk from litigation damages and reduces the incentives for intrafirm monitoring by partners within an audit firm. Prior research suggests that underpricing protects underwriters from litigation damages, and that the level of underpricing varies inversely with both the amount of implicit insurance provided by the audit firm and the quality of the audit services provided. We hypothesize the change in audit firm legal structure reduced the assets available from audit firms in IPO-related litigation and indirectly reduced audit quality by lowering intrafirm monitoring. As a result, underwriters have incentives as a joint and several defendant with the audit firms to increase IPO underpricing, particularly for high-litigation-risk IPOs, following audit firms' shifts to LLP status. Our findings are consistent with this hypothesis.

The Effect of Office Changes within Audit Firms on Clients' Audit Quality and Audit Fees

2020 ◽  
Vol 39 (1) ◽  
pp. 71-99
Author(s):  
Carl W. Hollingsworth ◽  
Terry L. Neal ◽  
Colin D. Reid
Keyword(s):  
Audit Quality ◽  
Audit Fees ◽  
Additional Analysis ◽  
Audit Firm ◽  
Audit Firms ◽  
Audit Fee ◽  
The Impact ◽  
Audit Partner Rotation

SUMMARY While prior research has examined audit firm and audit partner rotation, we have little evidence on the impact of within-firm engagement team disruptions on the audit. To examine these disruptions, we identify a unique sample of companies where the audit firm issuing office changed but the audit firm did not change and investigate the effect of these changes on the audit. Our results indicate that companies that have a change in their audit firm's issuing office exhibit a decrease in audit quality and an increase in audit fees. In additional analysis, we partition office changes into two groups—client driven changes and audit firm driven changes. This analysis reveals that client driven changes are more likely to result in a higher audit fee while audit quality is unchanged. Conversely, audit firm driven changes do not result in a higher audit fee but do experience a decrease in audit quality.

Welcome to the Party

2018 ◽  
Author(s):  
Khadijah Costley White
Keyword(s):  
Social Movement ◽  
Political Communication ◽  
News Media ◽  
Media Coverage ◽  
News Coverage ◽  
Tea Party ◽  
Audience Appeal

This chapter lays out the Tea Party’s history as a mass-mediated construction in the context of journalism, political communication, and social movement studies. It argues that the news coverage of the Tea Party primarily chronicled its meaning, appeal, motivations, influence, and circulation—an emphasis on its persona more than its policies. In particular, the news media tracked the Tea Party as a brand, highlighting its profits, marketability, brand leaders, and audience appeal. The Tea Party became a brand through news media coverage; in defining it as a brand, the Tea Party was a story, message, and cognitive shortcut that built a lasting relationship with citizen-consumers through strong emotional connections, self-expression, consumption, and differentiation.

Media Malaise and the Decline of Legitimacy

2017 ◽  
Author(s):  
Peter Van Aelst
Keyword(s):  
Systematic Review ◽  
Empirical Evidence ◽  
Media Coverage ◽  
News Coverage ◽  
Political Support ◽  
Level Of Education ◽  
Political News ◽  
Negative Tone ◽  
Election News ◽  
Over Time

This chapter analyzes media malaise theories and their consequences for legitimacy. These theories argue that the increasing availability of information through new and old media and increasingly negative tone of media are to blame for declining legitimacy. The chapter examines these claims by providing a systematic review of empirical research on media and political support. It first investigates whether news coverage has become more negative over time, and then examines the micro process that might explain the link between media coverage and political support. Empirical evidence suggests that where coverage has become more negative, this occurred before the 1990s and has levelled off since, and is concentrated primarily in election news. Negative political news does have a modest impact on political support once controlled for level of education, but that effect can be positive and negative, depending on the medium, the receiver, and the indicator of political support.

Just Like Leaves in the Wind? Exploring the Effect of the Interplay of Media Coverage and Personal Characteristics on Issue Salience

2017 ◽  
Author(s):  
Agatha Kratz ◽  
Harald Schoen
Keyword(s):  
Individual Differences ◽  
Panel Data ◽  
Financial Crisis ◽  
Media Coverage ◽  
News Coverage ◽  
Personal Characteristics ◽  
Election Campaign ◽  
Issue Salience ◽  
Cross Sectional ◽  
The Impact

This chapter explores the effect of the interplay of personal characteristics and news coverage on issue salience during the 2009 to 2015 period and during the election campaign in 2013. We selected four topics that played a considerable role during this period: the labor market, pensions and healthcare, immigration, and the financial crisis. The evidence from pooled cross-sectional data and panel data supports the notion that news coverage affects citizens’ issue salience. For obtrusive issues, news coverage does not play as large a role as for rather remote topics like the financial crisis and immigration. The results also lend credence to the idea that political predilections and other individual differences are related to issue salience and constrain the impact of news coverage on voters’ issue salience. However, the evidence for the interplay of individual differences and media coverage proved mild at best.

Understanding Fatal Crash Reporting Patterns in Bangladeshi Online Media using Text Mining

2021 ◽  
pp. 036119812110142
Author(s):  
Subasish Das
Keyword(s):  
Media Coverage ◽  
News Coverage ◽  
Strong Support ◽  
Online News ◽  
World Health ◽  
Health Concern ◽  
Traffic Fatalities ◽  
Traffic Crashes ◽  
News Agency ◽  
Fatal Crash

Traffic crashes are a major public health concern. In 2016, traffic crashes resulted in over 1.35 million deaths worldwide. In Bangladesh alone, the number of reported traffic fatalities was 2,376 in 2016. However, the World Health Organization estimated that the true number of traffic fatalities in Bangladesh ranges between 20,730 and 29,177. Editorial traffic crash reports in Bangladesh, and the number of crashes that are reported, vary widely among different media outlets. This study employed a Google News Alert to collect fatal crash reports from online English daily newspapers. The current study compiled a database of 419 fatal crash-related reports over a six-month period (November 2018–April 2019). The reports contain a total of 81,019 words. The results of this study reveal that online news coverage of traffic fatalities tends to vary from news agency to news agency. Furthermore, these reports do not usually cover key contributing factors of crash occurrences; the geometric features of crash occurrence sites are rarely reported. The findings demonstrate the importance of deciphering media coverage to develop potential safety risk measures in Bangladesh. The current findings provide strong support for the need for guidelines to help media outlets adequately document fatal crash reports.

Media coverage of the unfolding crisis of domestic terrorism in the United States, 1990–2020

2021 ◽  
pp. 2046147X2199601
Author(s):  
Diana Zulli ◽  
Kevin Coe ◽  
Zachary Isaacs ◽  
Ian Summers
Keyword(s):  
United States ◽  
Public Relations ◽  
Crisis Management ◽  
Media Coverage ◽  
Television News ◽  
News Coverage ◽  
The United States ◽  
Theory And Practice ◽  
Domestic Terrorism ◽  
Definitional Uncertainty

Public relations research has paid considerable attention to foreign terrorist crises but relatively little attention to domestic ones—despite the growing salience of domestic terrorism in the United States. This study content analyzes 30 years of network television news coverage of domestic terrorism to gain insight into four theoretical issues of enduring interest within the literature on news framing and crisis management: sourcing, contextualization, ideological labeling, and definitional uncertainty. Results indicate that the sources called upon to contextualize domestic terrorism have shifted over time, that ideological labels are more often applied on the right than the left, and that definitional uncertainty has increased markedly in recent years. Implications for the theory and practice of public relations and crisis management are discussed.

Leaving a joint audit system: conditional fee reductions

2014 ◽  
Vol 29 (2) ◽  
pp. 131-152 ◽  
Author(s):  
Claus Holm ◽  
Frank Thinggaard
Keyword(s):  
Audit Quality ◽  
Theory Development ◽  
Future Research ◽  
Research Approach ◽  
Content Type ◽  
Audit Firm ◽  
Audit System ◽  
Interaction Terms ◽  
Audit Firms ◽  
Audit Fee

Purpose – The authors aim to exploit a natural experiment in which voluntary replace mandatory joint audits for Danish listed companies and analyse audit fee implications of using one or two audit firms. Design/methodology/approach – Regression analysis is used. The authors apply both a core audit fee determinants model and an audit fee change model and include interaction terms. Findings – The authors find short-term fee reductions in companies switching to single audits, but only where the former joint audit contained a dominant auditor. The authors argue that in this situation bargaining power is more with the auditors than in an equally shared joint audit, and that the auditors' incentives to offer an initial fee discount are bigger. Research limitations/implications – The number of observations is constrained by the small Danish capital market. Future research could take a more qualitative research approach, to examine whether the use of a single audit firm rather than two has an effect on audit quality. The area calls for further theory development covering audit fee and audit quality in joint audit settings. Practical implications – Companies should consider their relationship with their auditors before deciding to switch to single auditors. Fee discounts do not seem to reflect long-lasting efficiency gains on the part of the audit firm. Originality/value – Denmark is the first country to leave a mandatory joint audit system, so this is the first time that it is possible to study fee effects related to this.

Looking over the channel: The balance of media coverage about the “refugee crisis” in Germany and the UK

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Marcus Maurer ◽  
Jörg Haßler ◽  
Simon Kruschinski ◽  
Pablo Jost
Keyword(s):  
News Media ◽  
Media Coverage ◽  
Television News ◽  
News Coverage ◽  
Value Theory ◽  
Political Elites ◽  
Refugee Crisis ◽  
British Government ◽  
News Value ◽  
The Uk

Abstract This study compares the balance of newspaper and television news coverage about migration in two countries that were differently affected by the so-called “refugee crisis” in 2015 in terms of the geopolitical involvement and numbers of migrants being admitted. Based on a broad consensus among political elites, Germany left its borders open and received about one million migrants mainly from Syria during 2015. In contrast, the conservative British government was heavily attacked by oppositional parties for closing Britain’s borders and, thus, restricting immigration. These different initial situations led to remarkable differences between the news coverage in both countries. In line with news value theory, German media outlets reported much more on migration than did their British counterparts. In line with indexing theory, German news coverage consonantly reflected the consensual view of German political elites, while British news media reported along their general editorial lines.

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