Fees Paid to Audit Firms, Accrual Choices, and Corporate Governance

By David F. Larcker, Scott A. Richardson. 2004

893 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/f727aa44ab2d362ec25d09f5179f026bfa108020

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Citations in the corpus

Do Financial Restatements Lead to Auditor Changes (2013, background): “However, Larcker et al. (2007) document that accounting restatements are not related to governance proxies that include board characteristics, stock ownership of insiders, institutional ownership, activist stockownership, executive compensation, and anti-takeover variables.”
Corporate Governance Quality, Audit Fees and Non-Audit Services Fees (2011, background): “…it is not surprising to find an abundance of studies on corporate governance and auditor remuneration in the highly regulated environment of the US (see for example, Ashbaugh et al., 2003; Carcello et al., 2002; Krishnan and Visvanathan, 2009; Larcker and Richardson, 2004; and Zhang et al., 2007).”
Seasoned Equity Offerings: Quality of Accounting Information and Expected Flotation Costs (2009, positive): “For robustness, we also estimate equation (2) after adding a firm’s book-to-market equity ratio as an additional regressor, following Larcker and Richardson (2004). 13 The main results are qualitatively similar to the results reported in the tables.”
Business Strategy, Financial Reporting Irregularities, and Audit Effort (2013, methodology): “DAP = Discretionary accruals, which is the residual of the following performance-adjusted modified Jones model (based on Larcker and Richardson 2004), estimated by 2-digit SIC industry every year: where Total Accruals = a + b1(ΔSALES - ΔREC) +b2PPE + b3BTM +b4CFO + e. BIGN = Indicator variable…”
How has the financial crisis affected earnings management? A European study (2015, methodology): “With respect to the model used by Larcker and Richardson (2004) and Callao and Jarne (2010), we include the constant term and we control for the expected growth in the firm’s operations using its market capitalization.”
Nonaudit Services and Earnings Conservatism: Is Auditor Independence Impaired?* (2006, background): “ Larcker and Richardson (2004) further show that any association between unexpected accruals and either audit or NAS fees is concentrated among a small (less than 10 percent) proportion of their sample firms where corporate governance is unusually weak.”
Corporate Governance and Firm Valuation (2006, neutral): “Our second finding is similar to Ashbaugh et al. (2003) and Larcker and Richardson (2004) who found the magnitude of nonaudit versus audit services to be unrelated to earnings management.30”
Do Rating Agencies Cater? Evidence from Rating-Based Contracts (2015, neutral): “Recent empirical evidence on the relation between non-audit fees and auditor independence is mixed (Larcker and Richardson (2004)).”
Accounting Anomalies and Fundamental Analysis: A Review of Recent Research Advances (2010, methodology): “Research in areas other than fundamental analysis has made some use of these techniques (see e.g., Bushee and Goodman, 2007; Larcker and Richardson, 2004; and Larcker et al. 2007).”