scholarly journals Auditor Independence in a Private Firm and Low Litigation Risk Setting

2010 ◽  
Vol 85 (2) ◽  
pp. 573-605 ◽  
Author(s):  
Ole-Kristian Hope ◽  
John Christian Langli
Keyword(s):  
Auditor Independence ◽  
Private Firm ◽  
Sensitivity Analyses ◽  
Litigation Risk ◽  
Publicly Traded ◽  
Large Sample ◽  
Empirical Results ◽  
Reputation Risk ◽  
Publicly Traded Firms ◽  
Auditor Reputation

ABSTRACT: We examine the issue of auditor independence in a unique setting. Specifically, we test for auditor independence impairment among (1) private client firms, for which the risk of auditor reputation loss is lower than for publicly traded firms, and (2) in a low litigation environment (i.e., Norway) that further reduces the expected costs to the auditor associated with independence impairment. We have thus chosen a setting that gives independence impairment its best chance of being detected if it exists. Using a large sample of private Norwegian firms, we analyze whether auditors who receive higher fees are less likely to issue modified opinions. Despite the low litigation risk and the reduced reputation risk, our empirical results provide no evidence that auditors compromise their independence through fee dependence. These results are robust to controlling for the expected portion of fees, to different sample specifications, to the use of both levels and changes specifications, and to a number of sensitivity analyses.

Economic Network of Publicly-Traded Firms

2012 ◽  
Author(s):  
Gennaro Bernile ◽  
George M. Korniotis ◽  
Alok Kumar
Keyword(s):  
Publicly Traded ◽  
Publicly Traded Firms

scholarly journals The Composition Of Corporate Boards Of Directors: Does Industry Matter?

2012 ◽  
Vol 10 (3) ◽  
pp. 157 ◽  
Author(s):  
Dan Marlin ◽  
Scott W. Geiger
Keyword(s):  
Boards Of Directors ◽  
Retail Trade ◽  
Future Research ◽  
Corporate Boards ◽  
Font Size ◽  
Corporate Board ◽  
Publicly Traded ◽  
Trade Finance ◽  
Board Characteristics ◽  
Publicly Traded Firms

<span style="font-family: Times New Roman; font-size: small;"> </span><p style="margin: 0in 0.5in 0pt; text-align: justify; mso-pagination: none; mso-add-space: auto;" class="MsoNormalCxSpFirst"><span style="color: black; font-size: 10pt;"><span style="font-family: Times New Roman;">The purpose of this study is to identify and examine differences in corporate board characteristics across four industries.<span style="mso-spacerun: yes;"> </span>Using a sample of 2592 US publicly traded firms, eleven board characteristics were identified and then examined across manufacturing, retail trade, finance/insurance, and services industries.<span style="mso-spacerun: yes;"> </span>Our analyses revealed significant differences in each of the eleven board characteristics examined.<span style="mso-spacerun: yes;"> </span>Implications and areas for future research are discussed.</span></span></p><span style="font-family: Times New Roman; font-size: small;"> </span>

scholarly journals On the estimation of the value of voting rights: Evidence from Taiwan

2006 ◽  
Vol 3 (2) ◽  
pp. 15-22 ◽  
Author(s):  
I-Hsiang Huang
Keyword(s):  
Stock Market ◽  
Abnormal Return ◽  
Market Value ◽  
Voting Rights ◽  
Publicly Traded ◽  
Private Benefit ◽  
Expected Return ◽  
Equity Ownership ◽  
Publicly Traded Firms

This paper proposes that the value of voting rights can be measured as the abnormal return of the date after the ex-voting rights date. The merit of this method is that it is applicable to all publicly traded firms. Whatever the expected return model is adopted, the vote value hypothesis of Manne (1962) is hold by using a sample of firms listed on Taiwan Stock Market whose annual shareholder meetings have a board election. Moreover, the result shows that the value of voting rights is negatively related to prior year’s market value of equity, managerial equity ownership, and return on asset. It is consistent with the hypothesis that the source of vote value comes from private benefit of control and improved management

scholarly journals Anteseden dari Pengungkapan Enterprise Risk Management pada Perusahaan yang Terdaftar di Indeks LQ45

2020 ◽  
Vol 5 (1) ◽  
pp. 90
Author(s):  
Keny Prasetyo Rini ◽  
Tuti Zakiyah
Keyword(s):  
Risk Management ◽  
Regression Analysis ◽  
Firm Size ◽  
Enterprise Risk Management ◽  
Management Committee ◽  
Positive Effects ◽  
Enterprise Risk ◽  
Reputation Risk ◽  
Risk Management Committee ◽  
Auditor Reputation

The purpose of this research is to determine te influences of independent commissioners, auditor reputation, risk management committee, leverage and firm size on enterprise risk management disclosure in index LQ45 companies listed in the 2016-2018. The samplimg method in this research is purposive sampling with 81 companies as population and 27 companies as samples. The ERM practice is measured based on ERM index, which considers the eight dimension of ERM by COSO framework. The results of simultaneous regression analysis show that the variables of independent commissioner, auditor reoutation, risk manegement committee, leverage and firm size have positif effects on the enterprise risk management disclosure. Partial testing shows that variabel of independent commissioner, risk management commite and firm size does not effect enterprise risk management disclosure. Auditor reputation and risk management committee have positive effects on enterprise risk management.

Financial Nexus

2019 ◽  
pp. 70-129
Keyword(s):  
Developing Countries ◽  
Capital Markets ◽  
Banking Sector ◽  
High Impact ◽  
Estimation Techniques ◽  
Large Sample ◽  
Empirical Results ◽  
Time Period ◽  
Bank Soundness

This book chapter investigates the financial nexus generated by bank soundness, concentration, and efficiency in the banking sector, as well as the development of the capital markets. The selected databases includes the time period between 1997 and 2010 for a large sample of 63 developed and developing countries. The empirical findings suggested that bank performance has a high impact on the relation between soundness, structural and functional characteristics of the banking sector. The econometric framework is complex and the empirical results appear to be robust for various measures of the selected variables and for distinct estimation techniques.

scholarly journals The Impact of the H3C on Auditor Independence in French Context

2017 ◽  
Vol 7 (2) ◽  
pp. 105
Author(s):  
Jamel Azibi ◽  
Hubert Tondeur ◽  
Hamza Azibi
Keyword(s):  
Auditor Independence ◽  
Financial Data ◽  
External Control ◽  
Empirical Results ◽  
Inspection Process ◽  
Control Authority ◽  
The Creation ◽  
The Impact

The H3C was created by the LSF Act of 2003 (LSF) to regulate the auditing profession in France. It is considered as an external control authority. The auditor independence is considered as the first preoccupation of this new authority. This paper focuses on the impact of the H3C on auditor independence in France context from 2002 to 2007. The first hypothesis is related to the establishment of the H3C and auditor independence and the second deals with the relation between the start of the inspection program and the auditor independence. Our data was obtained from Thomson Financial Data for 140 enterprises. The empirical results show that the auditor independence increases only after the creation of the H3C. Contrary to this result, the auditors' independence did not increase significantly after the announcement of the inspection process because the inspection process started in 2007. 

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