The Association between Auditor Litigation and Abnormal Accruals

By William G. Heninger. 2001

414 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/51ede7c288e191ebbfb8538242922791a0bc8303

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Juan Manuel García Lara
2. Beatriz García Osma
3. Fernando Penalva
4. Aloke Ghosh
5. J. P. Boone
6. Inder K. Khurana
7. Katherine Schipper
8. Charles Tang

In Strategy and Management

1. Juan Manuel García Lara
2. Beatriz García Osma
3. Fernando Penalva
4. Katherine Schipper
5. Aloke Ghosh
6. Inder K. Khurana
7. J. P. Boone
8. Jennifer Francis

Citations in the corpus

• Accounting conservatism and corporate governance (2009, background): “…(Demsetz and Lehn 1985); leverage (Cremers and Nair 2005); industry concentration and geographic concentration (Bushman et al. 2004); CEO tenure (Hermalin 2005); firm performance (Hermalin and Weisbach 1988; Demsetz and Lehn 1985); auditor size (Basu et al. 2001); regulated industry (Demsetz…”
• Investor Psychology in Capital Markets: Evidence and Policy Implications (2001, neutral): “The use of high abnormal accruals to increase earnings is positively associated with subsequent lawsuits against the firm’s auditor (Heninger (2001)).”
• Ethics, Diversity Management, and Financial Reporting Quality (2010, background): “Several studies have shown a strong association between EM and the risk of litigation (DuCharme et al., 2004; Heninger, 2001; Kasznik, 1999) and the loss of corporate reputation (Kaplan and Ravenscroft, 2004; Hunton et al.”
• The impact of audit quality on real and accrual earnings management around IPOs (2017, background): “Confirming the previous view on the probability of litigation risk due to accruals manipulation, Heninger (2001) examines the relation between abnormal accruals and auditor litigation risk.”
• Audit Fees and Book-Tax Differences (2012, neutral): “Overall, our signed results for book-tax differences are consistent with audit literature (St. Pierre and Anderson 1984; Heninger 2001; and Abbott et al. 2006) that argues that the risk of litigation is greater when earnings are overstated than understated.”
• The Economic Determinants of Conditional Conservatism (2009, neutral): “…research on auditor litigation shows that lawsuits against auditors are almost always related to situations where earnings or net assets have been overstated (Kellogg, 1984; St. Pierre and Anderson, 1984) or where the firm reports significant income-increasing abnormal accruals (Heninger, 2001).”