The Relationship between Audit Market Competition and Conservatism

2019 ◽  
Vol 37 (2) ◽  
pp. 165-187
Author(s):  
Hyun Jae Park ◽  
Khee Su Bae
Keyword(s):  
Market Competition ◽  
Audit Market ◽  
The Relationship

The Relationship between Audit Market Competition and Audit Fee

2017 ◽  
Vol 35 (1) ◽  
pp. 185-215
Author(s):  
Hyun Jae Park ◽  
Jaewan Park ◽  
Hye Jeong Nam
Keyword(s):  
Market Competition ◽  
Audit Market ◽  
Audit Fee ◽  
The Relationship

scholarly journals Does a Lack of Choice Lead to Lower Quality? Evidence from Auditor Competition and Client Restatements

2013 ◽  
Vol 32 (3) ◽  
pp. 31-67 ◽  
Author(s):  
Nathan J. Newton ◽  
Dechun Wang ◽  
Michael S. Wilkins
Keyword(s):  
Audit Quality ◽  
Negative Impact ◽  
Market Competition ◽  
Ongoing Debate ◽  
Policy Makers ◽  
Generally Accepted Accounting Principles ◽  
Market Participants ◽  
Audit Market ◽  
Financial Restatements ◽  
The Relationship

SUMMARY: We examine the relationship between auditor competition and the likelihood of financial restatements that occur as a result of failures in the application of generally accepted accounting principles (GAAP). Policy makers and audit market participants have expressed concern that the current level of auditor competition is low, resulting in a negative impact on audit quality. However, we find that restatements are more likely to occur in metropolitan statistical areas (MSAs) that have higher auditor competition. The association between audit market competition and restatements is statistically and economically significant. Our finding of a positive relationship between the likelihood of restatement and audit market competition is relevant to the ongoing debate regarding audit quality and the concentration of audit markets.

scholarly journals Economic Distress and Support for Radical Right Parties—Evidence From Sweden

2021 ◽  
pp. 001041402110243
Author(s):  
Sirus H. Dehdari
Keyword(s):  
Market Competition ◽  
Radical Right ◽  
Aggregate Level ◽  
Individual Level ◽  
Skilled Immigrants ◽  
Economic Distress ◽  
Radical Right Parties ◽  
Unemployment Risk ◽  
The Relationship ◽  
High Share

This paper studies the effects of economic distress on support for radical right parties. Using Swedish election data, I show that one layoff notice among low-skilled native-born workers increases, on average, support for the Swedish radical right party the Sweden Democrats by 0.17–0.45 votes. The relationship between layoff notices and support for the Sweden Democrats is stronger in areas with a high share of low-skilled immigrants and in areas with a low share of high-skilled immigrants. These findings are in line with theories suggesting that economically distressed voters oppose immigration as they fear increased labor market competition. In addition, I use individual-level survey data to show that self-reported unemployment risk is positively associated with voting for the Sweden Democrats among low-skilled respondents while the opposite is true for high-skilled respondents, echoing the aggregate-level findings.

The effect of auditor narcissism on audit market competition

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hojat Mohammadi ◽  
Mahdi Salehi ◽  
Meysam Arabzadeh ◽  
Hassan Ghodrati
Keyword(s):  
Financial Markets ◽  
Significant Relationship ◽  
Design Methodology ◽  
Audit Quality ◽  
Stock Exchange ◽  
Market Competition ◽  
Competitive Pressure ◽  
Content Type ◽  
Listed Firms ◽  
Audit Market

Purpose This paper aims to assess auditor narcissism’s effect on audit market competition (auditor concentration, clients’ concentration and competitive pressure). Design/methodology/approach This paper’s method is descriptive-correlational based on published information from listed firms on the Tehran Stock Exchange from 2012 to 2018 using a sample of 188 firms (1,310 observations). The method used for hypothesis testing is linear regression using panel data. Findings The results show a negative and significant relationship between auditor narcissism and audit market competition and its indices, including auditor concentration, clients’ concentration and competitive pressure. Moreover, a positive and significant relationship was observed between audit quality and audit market competition and its indices, including auditor concentration, client concentration and competitive pressure. Originality/value To analyzes competition indices in the audit market (auditor concentration, clients’ concentration and competitive pressure). The variable is assessed once more using the exploratory factor analysis of the so-called three variables single variable, named audit market competition. So the central question of the study is investigated within a broader sense. Moreover, as the present study is carried out in the emergent financial markets with extremely competitive audit markets to figure out the effect of auditors’ intrinsic characteristics on such markets’ competitiveness, it can provide useful information in this field.

The relationship between banking market competition and risk-taking: Do size and capitalization matter?

2012 ◽  
Vol 36 (12) ◽  
pp. 3366-3381 ◽  
Author(s):  
Benjamin M. Tabak ◽  
Dimas M. Fazio ◽  
Daniel O. Cajueiro
Keyword(s):  
Risk Taking ◽  
Market Competition ◽  
Banking Market ◽  
The Relationship

scholarly journals Malpractice Environment vs Direct Litigation: What Drives Nursing Home Exit?

2018 ◽  
Vol 55 ◽  
pp. 004695801878799
Author(s):  
R. Tamara Konetzka ◽  
Hari Sharma ◽  
Jeongyoung Park
Keyword(s):  
Nursing Home ◽  
Nursing Homes ◽  
Fixed Effects ◽  
Online Survey ◽  
Market Competition ◽  
Consumer Welfare ◽  
Data Sets ◽  
For Profit ◽  
The Impact ◽  
The Relationship

An ongoing concern about medical malpractice litigation is that it may induce provider exit, potentially affecting consumer welfare. The nursing home sector is subject to substantial litigation activity but remains generally understudied in terms of the effects of litigation, due perhaps to a paucity of readily available data. In this article, we estimate the association between litigation and nursing home exit (closure or change in ownership), separating the impact of malpractice environment from direct litigation. We use 2 main data sources for this study: Westlaw’s Adverse Filings database (1997-2005) and Online Survey, Certification and Reporting data sets (1997-2005). We use probit models with state and year fixed effects to examine the relationship between litigation and the probability of nursing home closure or change in ownership with and without adjustment for malpractice environment. We examine the relationship on average and also stratify by profit status, chain membership, and market competition. We find that direct litigation against a nursing home has a nonsignificant effect on the probability of closure or change in ownership within the subsequent 2 years. In contrast, the broader malpractice environment has a significant effect on change in ownership, even for nursing homes that have not been sued, but not on closure. Effects are stronger among for-profit and chain facilities and those in more competitive markets. A high-risk malpractice environment is associated with change of ownership of nursing homes regardless of whether they have been directly sued, indicating that it is too blunt an instrument for weeding out low-quality nursing homes.

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