Download or read book Common Individual Auditors and Analyst Forecast Performance written by Junxiong Fang and published by . This book was released on 2020 with total page 63 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the importance of analysts covering firms with common audit partners to analyst earnings forecast performance (hereafter, we term the analyst, auditor, and the firm as being “common”). We find that analysts issue more accurate and less optimistically biased earnings forecasts for firms with common audit partners than other analysts following the same firm without common audit partners. Consistent with expectations, we identify auditors' style in making audit judgments as the channel through which analysts accumulate better information from covering firms with common audit partners. In a series of cross-sectional analyses, we find that this result is stronger when: (1) analysts suffer from poor direct access to firm-specific information from managers; (2) the information value from common auditors is higher, evident in their clients having more opaque operations, more difficult-to-forecast earnings, and greater stock price synchronicity; and (3) the quality of information that analysts elicit from auditors is higher, evident in auditors belonging to a large audit firm. Our results are robust to different approaches for addressing the potential endogeneity of analysts' coverage decisions.
Download or read book Audit Firm Industry Specialisation and Analyst Forecast Accuracy written by Yi Wu and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: My thesis examines whether the extent to which audit firms concentrate their business in particular industries ('audit firm industry specialisation') improves the usefulness of published financial reports for analysts' predictions of future earnings, and whether the strength of any observed association varies in a manner consistent with the existence of a causal relationship between audit quality and analyst forecast accuracy. Prior research presents diametrically opposite predictions and results regarding the directional relationship between audit firm industry specialisation and analyst forecast accuracy. My thesis shows that the conflicting results in the literature arise largely from prior studies' focus on short-horizon (end-of-year) forecast accuracy, which is subject to competing effects related to audit quality, and which in turn renders the resulting empirical models highly sensitive to model specification. I argue that analyst long-horizon (beginning-of-year) forecast accuracy is a more direct measure of the usefulness of published earnings for the prediction of future performance, and demonstrate that regressions using this metric consistently report a significant positive relation between audit firm industry specialisation and forecast accuracy. I then examine whether the observed positive association between audit firm industry specialisation and forecast accuracy varies with factors argued to reflect the relative importance of audit quality to the predictability of earnings. First, I show that the impact of audit firm industry specialisation on forecast accuracy increases with the underlying riskiness of clients' operations (proxied by cash flow volatility and innate accrual quality). I then argue that audit firm industry specialisation should have a greater impact on the forecast accuracy of lower-quality analysts (where quality is proxied by experience, employer size, 'All-Star' status and composite measures), who rely relatively heavily on published earnings when generating forecasts. To this end, I present evidence that audit firm industry specialisation has a greater impact on forecast accuracy for: (1) firm-years where the average 'quality' of analysts covering the firm is lower, and (2) for forecasts issued by individual analysts of lower quality. My results are robust to the use of controls for the endogenous selection of industry specialist auditors. In sum, my study presents evidence that greater audit quality does improve the usefulness of financial statements for the prediction of future earnings.
Download or read book Audit Quality and Properties of Analyst Earnings Forecasts written by Bruce K. Behn and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Under the assumption that audit quality relates positively to unobservable financial reporting reliability, we investigate whether audit quality is associated with the predictability of accounting earnings by focusing on analyst earnings forecast properties. The evidence shows that analysts' earnings forecast accuracy is higher and the forecast dispersion is smaller for firms audited by a Big Five auditor. We further find that auditor industry specialization is associated with higher forecast accuracy and less forecast dispersion in the non-Big Five auditor sample but not in the Big Five auditor sample. Overall, our results suggest that high quality audit provided by Big Five auditors and industry specialist non-Big Five auditors is associated with better forecasting performance by analysts.
Download or read book Auditors Response to Analysts Forecast Properties written by Yin Yen William Foo and published by . This book was released on 2014 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study draws on information asymmetry theory and audit pricing theory to examine the linkage between analysts' earnings forecast properties and audit pricing in the US. To test these associations information asymmetry is measured by (1) analysts' forecast accuracy, and (2) analysts' forecast dispersion. This study provides evidence that higher analyst earnings forecast accuracy (dispersion) are associated with lower (higher) audit fee pricing. Our interpretation of these results are that analysts, as important financial intermediaries, provide useful information to other third parties, including auditors. We find that these relationships are stronger for small firms and younger firms in line with these firms having higher informational problems, and that audit firm industry specialization plays a significant role in reducing information asymmetry.
Download or read book Earnings Management Pressure on Audit Clients written by Nathan J. Newton and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study investigates whether auditors respond to earnings management pressure created by analyst forecasts. Analyst forecasts create an important earnings target for management, and professional standards direct auditors to consider how this pressure could affect their clients. Using annual analyst forecasts available during the planning phase of the audit, I examine whether this form of earnings management pressure affects clients' financial statement misstatements. Next, I investigate whether auditors respond to earnings forecast pressure through audit fees and reporting delay. I find that higher levels of analyst forecast pressure increase the likelihood of client restatement. I also find that auditors charge higher audit fees and delay the issuance of the audit report in response to pressure from analyst expectations. Finally, I find that when audit clients are subject to high analyst forecast pressure, a high audit fee response by auditors mitigates the likelihood of client misstatements. The electronic version of this dissertation is accessible from http://hdl.handle.net/1969.1/151105
Download or read book Old English Cookery written by and published by . This book was released on 1894 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book THE AUDITOR S ROLE IN FINANCIAL FORECASTS written by PAUL DANOS and published by . This book was released on 1979 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Auditor Changes by the Firms Just Missing Analysts Forecasts written by Yaou Zhou and published by . This book was released on 2018 with total page 78 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study explores a unique setting to examine whether firms tend to change their auditors when their annually reported EPS "just misses" the most recent consensus analysts' forecasts (i.e., within one cent). I find that firms just missing the consensus analysts' forecasts are more likely to switch their auditors than their peer firms. Furthermore, these just-missing firms tend to switch to a more flexible auditor and have lower earnings quality than their peer firms after making the auditor switch, suggesting some opportunism in their switching behavior. In contrast with most opinion shopping literature, this "just-miss" setting allows me to test an implicit form of opportunistic auditor switching behavior -- the shopping of auditors' styles rather than their opinions. The results taken together indicate that firms can successfully shop for a more lenient auditor when the incumbent possibly constrains their ability to meet or beat the earnings target. This also provides empirical evidence in support of DeFond and Zhang (2014)'s argument that opinion shopping may occur in forms other than the reduction of going-concern opinions and still reflect an impairment of auditor independence/quality.
Download or read book The Routledge Companion to Auditing written by David Hay and published by Routledge. This book was released on 2014-09-15 with total page 504 pages. Available in PDF, EPUB and Kindle. Book excerpt: Auditing has been a subject of some controversy, and there have been repeated attempts at reforming its practice globally. This comprehensive companion surveys the state of the discipline, including emerging and cutting-edge trends. It covers the most important and controversial issues, including auditing ethics, auditor independence, social and environmental accounting as well as the future of the field. This handbook is vital reading for legislators, regulators, professionals, commentators, students and researchers involved with auditing and accounting. The collection will also prove an ideal starting place for researchers from other fields looking to break into this vital subject.
Download or read book Advances in Accounting Behavioral Research written by Khondkar E. Karim and published by Emerald Group Publishing. This book was released on 2022-08-25 with total page 205 pages. Available in PDF, EPUB and Kindle. Book excerpt: Focusing on research that examines both individual and organizational behavior relative to accounting, Volume 25 of Advances in Accounting Behavioral Research uncovers emerging theories, methods and applications.
Download or read book Cost and Management Accounting Fundamentals and its Applications written by Gill Suveera and published by Vikas Publishing House. This book was released on with total page 801 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Third edition is the updated version of the book as per the latest CBCS syllabus.
Download or read book Fundamentals of Risk Management for Accountants and Managers written by Paul M. Collier and published by Routledge. This book was released on 2009-10-26 with total page 276 pages. Available in PDF, EPUB and Kindle. Book excerpt: Both financial and non-financial managers with accountability for performance at either a strategic level or for a business unit have responsibility for risk management, in terms of failing to achieve organisational objectives. Fundamentals of Enterprise Risk management is structured around four parts and 26 self-contained chapters. Each chapter will have ample practical examples and illustrations/mini-case studies from retail, manufacturing and service industries and from the public and not-for-profit sectors to enable the reader to understand and apply the concepts in the book.
Download or read book Financial Reporting in the 1990s and Beyond written by Peter H. Knutson and published by CFA Institute. This book was released on 1993 with total page 114 pages. Available in PDF, EPUB and Kindle. Book excerpt: Sets forth the position of investment advisors and financial analysts who want to see certain things changed.
Download or read book Financial Planning Analysis and Performance Management written by Jack Alexander and published by John Wiley & Sons. This book was released on 2018-06-13 with total page 647 pages. Available in PDF, EPUB and Kindle. Book excerpt: Critical insights for savvy financial analysts Financial Planning & Analysis and Performance Management is the essential desk reference for CFOs, FP&A professionals, investment banking professionals, and equity research analysts. With thought-provoking discussion and refreshing perspective, this book provides insightful reference for critical areas that directly impact an organization’s effectiveness. From budgeting and forecasting, analysis, and performance management, to financial communication, metrics, and benchmarking, these insights delve into the cornerstones of business and value drivers. Dashboards, graphs, and other visual aids illustrate complex concepts and provide reference at a glance, while the author’s experience as a CFO, educator, and general manager leads to comprehensive and practical analytical techniques for real world application. Financial analysts are under constant pressure to perform at higher and higher levels within the realm of this consistently challenging function. Though areas ripe for improvement abound, true resources are scarce—until now. This book provides real-world guidance for analysts ready to: Assess performance of FP&A function and develop improvement program Improve planning and forecasting with new and provocative thinking Step up your game with leading edge analytical tools and practical solutions Plan, analyze and improve critical business and value drivers Build analytical capability and effective presentation of financial information Effectively evaluate capital investments in uncertain times The most effective analysts are those who are constantly striving for improvement, always seeking new solutions, and forever in pursuit of enlightening resources with real, useful information. Packed with examples, practical solutions, models, and novel approaches, Financial Planning & Analysis and Performance Management is an invaluable addition to the analyst’s professional library. Access to a website with many of the tools introduced are included with the purchase of the book.
Download or read book Valuation Techniques written by David T. Larrabee and published by John Wiley & Sons. This book was released on 2012-11-06 with total page 628 pages. Available in PDF, EPUB and Kindle. Book excerpt: Analysis and insights from top thought leaders on a pivotal topic in investing and asset management Valuation is the cornerstone for investment analysis, and a thorough understanding and correct application of valuation methodologies are critical for long-term investing success. Edited by two leading valuation experts from CFA Institute, this book brings together the insights and expertise of some of the most astute and successful investment minds of the past 50 years. From Benjamin Graham, the “father of value investing,” to Aswath Damodaran, you’ll learn what these investment luminaries have to say about investment valuation techniques, including earnings and cash flow analysis. Features the best thinking on valuation from the industry’s masters on the topic, supplemented with dozens of fascinating and instructive real-world examples Comprehensively discusses special valuation situations, such as real options, employee stock options, highly leveraged firms, corporate takeovers, and more Supplies you with the tools you need to successfully navigate and thrive in the ever-changing financial markets Is being produced with the full support and input of CFA Institute, the world’s leading association of investment professionals
Download or read book American Doctoral Dissertations written by and published by . This book was released on 2000 with total page 816 pages. Available in PDF, EPUB and Kindle. Book excerpt:
