Do Client Characteristics Really Drive the Big N Audit Quality Effect? New Evidence from Propensity Score Matching

By Mark L. Defond, David H. Erkens, Jieying Zhang. Management Sciences, 2017

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A review of the IFRS adoption literature (2016, methodology): “They attribute this to the greater transparency accorded by IFRS reporting, as implied by Demerjian (2012) and conclude that a lower likelihood of restrictive covenants is an important benefit of IFRS adoption.”
The impact of audit quality on real and accrual earnings management around IPOs (2017, methodology): “…suitable exogenous variables and the sensitivity of the Heckman two-step approach, many papers have applied a propensity-score matching approach to control for auditor self-selection bias e.g., Boone et al. (2010), Lawrence et al. 23 (2011), Eshleman and Guo (2014), and DeFond et al. (2014).”
The Impact of Audit Committee Financial Expertise on Management Discussion and Analysis (MD&A) Tone (2019, background): “4In a similar vein, DeFond et al. (2005) examine the stock market reaction to the appointment of audit committee experts.”