Audit Firm Portfolio Management Decisions

By Karla M. Johnstone, Jean C. Bedard. 2004

290 citations recorded by the source corpus.

Subfields: Accounting, Finance

View Paper: https://www.semanticscholar.org/paper/85a7b4f7c2c180829b2c5faea85f9d78d12e86e8

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. Paul N. Michas
2. Xi Wu
3. Clive Lennox
4. Joël Branson
5. Diane Breesch
6. Kris Hardies
7. Tianyu Zhang
8. Jere R. Francis

In Finance

1. Paul N. Michas
2. Clive Lennox
3. Joël Branson
4. Diane Breesch
5. Kris Hardies
6. Xi Wu
7. Tianyu Zhang
8. Jere R. Francis

Citations in the corpus

• Aggregate Quasi Rents and Auditor Independence: Evidence from Audit Firm Mergers in China (2011, unknown): “public companies choose audit firms that also audit their competitors (Krishnan 2005). Similarly, for our sample firms, the market share per audit firm measured by total client assets audited remains basically unchanged immediately after the mergers. 11 Ideally, the comparison should be between 1999”
• Do Investors Value a Firm’s Commitment to Social Activities? (2013, unknown): “10 Numerous accounting studies have used Zmijewski score for the recognition of financial distressed firms (e.g., Pava and Krausz, 1996; Ruiz-Barbadillo et al., 2004; Johnstone and Bedard, 2004; Carcello and Nagy, 2004).”
• Does Mandatory Rotation of Audit Partners Improve Audit Quality (2014, background): “Audit firms tend to resign from clients that pose a high risk of misreporting and litigation; moreover, investors perceive auditor resignations as being negative signals of corporate value (Shu 2000; Johnstone and Bedard 2004; Whisenant, Raghunandan, and Sankaraguruswamy 2003).”
• Do (Fe)Male Auditors Impair Audit Quality? Evidence from Going-Concern Opinions (2016, methodology): “Following previous research (e.g. Johnstone & Bedard, 2004; O’Keefe, Simunic, & Stein, 1994), we measure risk as (1) total liabilities divided by total assets (LEVERAGE), (2) net income divided by total assets (ROA), or (3) inventory and receivables divided by total assets (INHRISK).”
• Auditor Choice in Politically Connected Firms (2014, unknown): “First, a Big Four auditor can protect its valuable reputation and avoid litigation by refusing to accept engagements from clients that are more apt to resort to manipulating their financial statements to hide underlying performance, or resign from engagements when the ensuing risk reaches an intoler”
• The Contagion Effect of Low-Quality Audits (2013, methodology): “Further, Johnstone and Bedard (2004) do not include client assets as a risk variable, although they do include it as a control variable in their analyses.”