Disclosure of fees paid to auditors and the market valuation of earnings surprises

By Jere R. Francis, Bin Ke. 2006

321 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/fce0debbeabbeb7fff97f1ae0a8a926c1180431a

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Citations in the corpus

The Changing Role of Auditors in Corporate Tax Planning (2005, background): “…papers study the market for auditors (e.g., Antle et al., 2002; Whisenant, 2003), auditing and the capital markets (e.g., Francis et al., 1999; Francis and Ke, 2004) and auditor independence (e.g., Antle, 1984; Ashbaugh et al., 2003; DeFond et al., 2002; Frankel et al., 2002; Kinney et al.,…”
Non-audit Services and Audit Quality: Evidence from Private Firms (2013, background): “Most of those studies find no support for an association between NAS fees and (i) indicators of earnings management (see Ashbaugh et al., 2003; Chung and Kallapur, 2003; Larcker and Richardson, 2004; Reynolds et al., 2004; Francis and Ke, 2006; Ruddock et al., 2006; Huang et al., 2007) or (ii) going”
Audit and non-audit fees and capital market perceptions of auditor independence (2009, methodology): “…that provide evidence on whether audit and non-audit fees influence independence-in-appearance (Higgs and Skantz, 2006; Krishnan et al., 2005; Francis and Ke, 2006) examine audit fees, non-audit fees, or non-audit fee ratio (non-audit to total fees from a client), but not client importance…”
Nonaudit Fees, Auditor Independence, and Bond Ratings (2004, background): “Francis and Ke (2003) report that the market valuation of earnings surprises is significantly lower for firms that exceed $500,000 in non-audit fees and also pay more for non-audit services than the audit.”
Understanding Earnings Quality: A Review of the Proxies, Their Determinants and Their Consequences (2010, background): “…(e.g., audit versus nonaudit), sample firms, and specific measure of accruals quality (Frankel et al., 2002; Ashbaugh et al., 2003; Chung and Kallapur, 2003; Gul et al., 2003; Ferguson et al., 2004; Larcker and Richardson, 2004; Francis and Ke, 2006; Ruddock et al., 2006; Gul and Srinidhi, 2007).”
Auditor Independence and Audit Quality (2015, background): “the fee disclosure date (Frankel, Johnson and Nelson, 2002), quarterly earnings announcement (Francis and Ke, 2006), key events leading up to the passage of Sarbanes-Oxley Act (Jain and Rezaee, 2006; Zhang, 2007), Arthur Andersen’s clients around the indictment period (Krishnamurthy, Zhou, and Zhou,”
The Demand for Audit in Private Firms: Recent Large-Sample Evidence from the UK (2014, unknown): “For example, the market response to quarterly earnings surprises has been found to be lower for companies which report higher levels of NAS purchases from their auditor (Krishnan et al., 2005; Francis and Ke, 2006).”
The market reaction to Arthur Andersen's role in the Enron scandal: Loss of reputation or confounding effects? (2008, background): “ERCs are significantly greater for companies with more reputable auditors (Teoh and Wong, 1993; Francis and Ke, 2006 ) but decline following a loss of auditor reputation (Moreland, 1995).”