The Joint Effect of Investor Protection and Big 4 Audits on Earnings Quality around the World

By Jere R. Francis, Dechun Wang. 2008

1,120 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/d805b71e125e95c944a34d3860640a64df53c84a

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Citations in the corpus

The digital transformation of external audit and its impact on corporate governance (2020, background): “…the new law on economic regulation (Sarbanes-Oxley act of 2002 in USA) which strengthened auditors' controls, particularly through the PCAOB 1 and the audit committees, audit quality remains the main concern of the stakeholders (Beisland et al., 2015; Hope et al., 2008; Francis and Wang, 2008).”
Auditor Choice in Politically Connected Firms (2014, positive): “In recent cross-country research, Guedhami et al. (2009) examine auditor choice in stateowned enterprises and during their transition to private ownership.”
Understanding Earnings Quality: A Review of the Proxies, Their Determinants and Their Consequences (2010, background): “The third study is that of Francis and Wang (2008), who find that earnings quality (measured by the magnitude of discretionary accruals, the likelihood of reporting a loss, and timely loss recognition) is positively related to country-level investor protection, but only for firms with Big-four…”
Mandatory IFRS adoption: the trade-off between accrual-based and real earnings management (2017, background): “We control for operating cash flows (OCF) deflated by total assets because of the well-documented inverse relationship between operating cash flows and accruals (Cheng and Thomas 2006, Francis and Wang 2008).”
The Role of International Financial Reporting Standards in Accounting Quality: Evidence from the European Union (2010, neutral): “Consistent with previous studies (e.g., Hung, 2001; Leuz et al., 2003; Francis and Wang, 2008), financial institutions (i.e., those with four-digit Standard Industrial Classification [SIC] codes between 6000 and 6999) were excluded from the sample of the main tests due to their particular…”
Compliance with IFRS 3- and IAS 36-required disclosures across 17 European countries: company- and country-level determinants (2013, methodology): “…work and the empirical research discussed above (Ball et al. 2000, 2003, Hope 2003b, Leuz et al. 2003, Bushman et al. 2004, Francis et al. 2005, Francis and Wang 2008) which provides evidence that the quality of financial reporting is jointly determined by reporting standards, incentives faced…”
Earnings Management and Audit Quality in Europe: Evidence from the Private Client Segment Market (2008, background): “…have shown that audit quality differentiation is weak or absent for public companies in countries with weak investor protection, as the probability of reputational damage due to a low quality audit is much lower in these countries (e.g. Maijoor and Vanstraelen, 2006; Francis and Wang, 2008).”
Does PCAOB Inspection Access Improve Audit Quality? An Examination of Foreign Firms Listed in the United States (2016, methodology): “27 Another benefit of this measure is that “it implicitly controls for cross-country differences in accounting standards by using a firm as its own control to compute abnormal accruals” (Francis and Wang, 2008, p. 168). Similarly, this method also controls for differences in interpretation of accoun”