Access the full text.
Sign up today, get DeepDyve free for 14 days.
J. Payne, Sean Robb (2000)
Earnings Management: The Effect of Ex Ante Earnings ExpectationsJournal of Accounting, Auditing & Finance, 15
Watkins Watkins, Hillison Hillison, Morecroft Morecroft (2004)
‘Audit quality: A synthesis of theory and empirical evidence’Journal of Accounting Literature, 23
L. Brown (2001)
How Important Is Past Analyst Forecast Accuracy?Financial Analysts Journal, 57
Kimberly Dunn, Brian Mayhew (2004)
Audit Firm Industry Specialization and Client Disclosure QualityReview of Accounting Studies, 9
Payne Payne, Robb Robb (2000)
‘Earnings management: The effect of ex ante earnings uncertainty’Journal of Accounting, Auditing & Finance, 15
Gopal Krishnan (2003)
Does Big 6 Auditor Industry Expertise Constrain Earnings ManagementAccounting Horizons, 17
Jere Francis, Donald Stokes, Don Anderson (1999)
City Markets as a Unit of Analysis in Audit Research and the Re‐Examination of Big 6 Market SharesAbacus, 35
S. Balsam, J. Krishnan, J. Yang (2003)
Auditor Industry Specialization and Earnings QualityEar and Hearing, 22
Connie Becker, Mark Defond, J. Jiambalvo, K. Subramanyam (1998)
The Effect of Audit Quality on Earnings ManagementContemporary Accounting Research, 15
Vincent Owhoso, William Messier, John Lynch (2002)
Error Detection by Industry‐Specialized Teams during Sequential Audit ReviewJournal of Accounting Research, 40
Hwang Hwang, Jan Jan, Basu Basu (1996)
‘Loss firms and analysts' earnings forecast errors’Journal of Financial Statement Analysis, 1
Kimberly Dunn, Brian Mayhew, Suzanne Morsfield (2000)
Auditor Industry Specialization and Client Disclosure QualitySPGMI: Compustat Fundamentals (Topic)
J. Heckman (1979)
Sample selection bias as a specification errorApplied Econometrics, 31
G. Kleinman, Beixin Lin, Dan Palmon (2013)
Audit QualityJournal of Accounting, Auditing & Finance, 29
J. Francis, Donna Philbrick, K. Schipper (1994)
SHAREHOLDER LITIGATION AND CORPORATE DISCLOSURESJournal of Accounting Research, 32
Kenneth Reichelt, Dechun Wang (2010)
National and Office-Specific Measures of Auditor Industry Expertise and Effects on Audit QualityJournal of Accounting Research, 48
Bruce Behn, Jong-Hag Choi, Tony Kang (2007)
Audit Quality and Properties of Analyst Earnings ForecastsAuditing
Jensen Jensen, Meckling Meckling (1976)
‘Theory of the firm: managerial behavior, agency costs and ownership structure’Journal of Financial Economics, 3
Chan Li, Yuan Xie, J. Zhou (2010)
National Level, City Level Auditor Industry Specialization and Cost of DebtAccounting Horizons, 24
V. Narayanan (1995)
Moral Hazard in Repeated Professional PartnershipsContemporary Accounting Research, 11
Payne Payne, Thomas Thomas (2003)
‘The implications of using stock‐split adjusted I/B/E/S data in empirical research’The Accounting Review, 78
A. Craswell, Jere Francis, Stephen Taylor (1995)
Auditor brand name reputations and industry specializationsJournal of Accounting and Economics, 20
Lee-Seok Hwang, C. Jan, Sudipta Basu (1996)
Loss Firms and Analysts' Earnings Forecast ErrorsFox School of Business
C. Lim, H. Tan (2007)
Non-Audit Service Fees and Audit Quality: The Impact of Auditor SpecializationAuditing
R. Atiase (1985)
Predisclosure Information, Firm Capitalization, And Security Price Behavior Around Earnings AnnouncementsJournal of Accounting Research, 23
Michael Jensen, W. Meckling (1976)
Theory of the Firm
Don Herrmann, W. Thomas (2005)
Rounding of Analyst ForecastsAccounting review: A quarterly journal of the American Accounting Association, 80
Gerald Lobo, Jian Zhou (2006)
Did Conservatism in Financial Reporting Increase after the Sarbanes-Oxley Act? Initial EvidenceAccounting Horizons, 20
Jeffery Abarbanell, Brian Bushee (1997)
Fundamental Analysis Future Earnings, and Stock PricesJournal of Accounting Research, 35
Andrew Ferguson, Jere Francis, Donald Stokes (2003)
The Effects of Firm‐Wide and Office‐Level Industry Expertise on Audit PricingThe Accounting Review, 78
Schipper Schipper (1991)
‘Commentary on analysts' forecasts’Accounting Horizons, 5
J. Payne, W. Thomas (2003)
The Implications of Using Stock-Split Adjusted I/B/E/S Data in Empirical ResearchCapital Markets: Asset Pricing & Valuation
(1991)
Commentary on analysts
D. Cohen, Aiyesha Dey, Thomas Lys (2004)
Real and Accrual-Based Earnings Management in the Pre- and Post-Sarbanes Oxley PeriodsSPGMI: Compustat Fundamentals (Topic)
W. Rogers (1994)
Regression standard errors in clustered samplesStata Technical Bulletin, 3
Jere Francis, Kenneth Reichelt, Dechun Wang (2005)
The Pricing of National and City‐Specific Reputations for Industry Expertise in the U.S. Audit MarketAccounting review: A quarterly journal of the American Accounting Association, 80
Mark Lang, Russell Lundholm (1998)
Corporate Disclosure Policy and Analyst Behavior
Brian Bushee, Christopher Noe (2000)
Corporate Disclosure Practices, Institutional Investors, and Stock Return VolatilityJournal of Accounting Research, 38
(1990)
‘ Earnings expectations : the analysts ’ information advantage
Imhoff Imhoff, Lobo Lobo (1992)
‘The effect of ex ante earnings uncertainty on earnings response coefficients’The Accounting Review, 67
J. Payne (2008)
The Influence of Audit Firm Specialization on Analysts’ Forecast ErrorsEar and Hearing, 27
R. Atiase (1980)
Predisclosure informational asymmetries, firm capitalization, financial reports, and security price behavior
We examine the relation between Big N industry specialist auditors and analyst forecast properties using a national and city level industry specialist framework. Consistent with the assumption that audit quality is positively related to financial reporting quality and predictability of accounting earnings, our results show that firms audited by joint city and national leaders have more accurate analyst forecasts. We also find that firms audited by city level industry leaders, either alone or jointly with national leaders, have lower analyst forecast dispersion. In addition, our results are more pronounced for small firms that suffer from higher information asymmetry. Finally, we find some evidence that firms that switch their auditors to joint or city industry specialist auditors experience a decrease in forecast error. However, we do not find that firms that switch their auditors away from industry specialist auditors experience an increase in forecast error, neither do we find that auditor switch between industry specialist auditors and non‐specialists affects forecast dispersion.
International Journal of Auditing – Wiley
Published: Nov 1, 2012
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.