Audit pricing puzzle: Do audit firm industry specialization and audit report lag matter?

Yeboah, Ebenezer Nana; Addai, Bismark; Appiah, Kingsley Opoku

doi:10.1080/23311975.2023.2172013

Cited by 10 publications

(3 citation statements)

References 63 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…As the supplier of services, features of audit firms like size, tenure, turnover, and reputation premium exhibit a positive effect on audit fees [5]. Subsequent research also suggests that auditor's industry expertise and independence contribute to economies of scale within homogeneous industries, thereby diminishing audit pricing [8].…”

Section: Audit Feesmentioning

confidence: 98%

Managerial myopia and audit fees: Evidence from China

Wang

2024

HBEM

View full text Add to dashboard Cite

Following the upper echelons and time orientation theoretical frameworks, this study meticulously examines the effects of managerial myopia on audit fees utilizing data of Chinese A-share listed companies spanning from 2007 to 2022. Employing textual analysis and machine learning techniques on MD&A, we find that managerial myopia can significantly increase audit fees by intensifying financial constraints, diminishing accounting information comparability, and compromising internal control quality. However, this relationship is accentuated by analyst coverage but attenuated by digital transformation. Cross-sectionally, we document a particularly pronounced positive association between managerial myopia and audit fees within firms exhibiting higher corporate risk tolerance, diminished industrial competition and a lower degree of marketization. Collectively, this study further enriches corporate governance and audit fees literature, advancing valuable insights for regulators, accountants and auditors.

show abstract

Section: Audit Feesmentioning

confidence: 98%

Managerial myopia and audit fees: Evidence from China

Wang

2024

HBEM

View full text Add to dashboard Cite

show abstract

“…Knowledge supports informed decision-making, drives innovation, provides a competitive advantage and contributes to long-term sustainability for business enterprises. In the present business environment, knowledge often differentiates successful companies from their competitors (Yeboah, 2023). Companies with unique insights, proprietary information, or specialized expertise have a distinct advantage.…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of HR Practices on Innovative Work Behaviour: The Mediating Role of Organizational Support, Knowledge-sharing and Employee Creativity

Jishnu,

Hareendrakumar

2024

Paradigm: A Management Research Journal

View full text Add to dashboard Cite

Employee performance, supported by creativity and innovative work behaviour (IWB), is one significant predictor of organizational success. Creative employees with IWBs are crucial for an organization to achieve sustainable and competitive advantage over its rivals. Human resource (HR) management practices are critical in fostering employee creativity (EC) and IWB. Organizational support and knowledge-sharing (KS) are other factors that largely contribute to EC and work behaviour. Organizations must understand these variables and their interactions to develop an environment of creativity and innovative work practices. This article explores the mediating role of perceived organizational support, KS and EC between HR practices and employees’ innovative work practices. For this purpose, a theoretical model has been developed, and six hypotheses were set for statistical testing. Data collected from 404 employees working in various IT companies in Kerala are analysed using structural equation modelling. The results showed significant direct and indirect effects of the variables in predicting employees’ work behaviour. The study’s insights provide valid information for strategy formation that fosters IWBs supported by HR practices, organizational support, KS and EC.

show abstract

“…Industry expertise means the auditor has in-depth knowledge, understanding, and extensive experience of the company's business, industry, and operations. In addition to having a deep understanding of how to apply the general and specific accounting standards and practices of the client's industry and extensive knowledge of auditing standards are necessary to perform a highquality audit where the industry and nature of the client's business affect the risks of material misstatement in the client's financial statements (Yeboah et al, 2023). Several previous studies, including (Garcia-Blandon andArgiles-Bosch, 2018 andBoubaker et al, 2018), provided evidence that industry expertise and knowledge are among the main factors influencing the level of audit quality.…”

Section: Industry Expertise and Earnings Managementmentioning

confidence: 99%

A comparative study of the relationship between audit quality and earnings management in the markets of Iraq and Oman

Wahab,

Velashani,

Salehi

2023

J. Infras. Policy. Dev.

View full text Add to dashboard Cite

The present study investigates the relationship between audit quality and earnings management in banks listed on the Stock Exchange of Iraq and Oman. This paper used audit firm size, auditors’ industry expertise, audit report timeliness, auditor change, and auditors’ opinions to measure audit quality. Financial statements, notes attached to financial statements, and reports of independent auditors of 28 banks listed on the Iraqi Stock Exchange and 8 banks listed on the Oman Stock Exchange during the financial period of 7 years (2015 to 2021), and hypotheses were tested using EViews software and panel data. The results of the hypothesis testing showed no significant relationship between the firm size and the auditors’ change and earnings management for both countries (Iraq and Oman). This is while the relationship between the auditor’s industry expertise, the timely presentation of the audit report, and the auditor’s opinion and earnings management for both countries (Iraq and Oman) is negative.

show abstract

Audit pricing puzzle: Do audit firm industry specialization and audit report lag matter?

Cited by 10 publications

References 63 publications

Managerial myopia and audit fees: Evidence from China

Managerial myopia and audit fees: Evidence from China

Impact of HR Practices on Innovative Work Behaviour: The Mediating Role of Organizational Support, Knowledge-sharing and Employee Creativity

A comparative study of the relationship between audit quality and earnings management in the markets of Iraq and Oman

Contact Info

Product

Resources

About