Are large auditors more accurate than small auditors?

Accounting and Business Research

Volumn 29, Issue 3, 1999, Pages 217-227

  Lennox, Clive ^a  

^a UNIVERSITY OF BRISTOL   (United Kingdom)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0008409715     PISSN: 00014788     EISSN: None     Source Type: Journal    
DOI: 10.1080/00014788.1999.9729582     Document Type: Article

References (24)

1. Altman, E. (1986). 'Financial ratios, discriminant analysis and the prediction of corporate bankruptcy', in Johnson, R. (ed.), Issues and readings in managerial finance. New York: Dryden Press.
2. Altman, E. and McGough, T. (1974). 'Evaluation of a company as a going concern'. Journal of Accountancy: 51-57.
3. Anderson, J. (1972). 'Separate sample logistic discrimination'. Biometrika 59: 19-35.
4. Balvers, R., McDonald, B. and Miller, R. (1988). 'Underpricing of new issues and the choice of auditor as a signal of investment banker reputation'. The Accounting Review, 63: 605-621.
5. Beatty, R. (1989). 'Auditor reputation and the pricing of initial public offerings'. The Accounting Review, 64: 693-709.
6. Datar, S., Feltham, G. and Hughes, J. (1991). 'The role of audits and audit quality in valuing new issues'. Journal of Accounting and Economics, 14: 3-49.
7. DeAngelo, L. (1981). 'Auditor size and audit quality'. Journal of Accounting and Economics, 3: 183-199.
8. DeFond, M. (1992). 'The association between changes in client firm agency costs and auditor switching'. Auditing: A Journal of Theory and Practice, 11: 16-31.
9. Dye, R. (1993). 'Auditing standards, legal liability and auditor wealth'. Journal of Political Economy, 101: 887-914.
10. Eichenseher, J., Hagigi, M. and Shields, D. (1989). 'Market reaction to auditor changes by OTC companies'. Auditing: A Journal of Practice and Theory, 9: 29-40.
11. Firth, M. and Smith, A. (1992). 'Selection of auditor firms by companies in the new issue market'. Applied Economics, 24: 247-255.
12. Francis, J. and Wilson, E. (1988). 'Auditor changes: A joint test of theories relating to agency costs and auditor differentiation'. The Accounting Review, 63: 663-682.
13. Grout, P., Jewitt, L, Pong, C. and Whittington, G. (1994). 'Auditor professional judgement: Implications for regulation and the law'. Economic Policy, 19: 307-344.
14. Hopwood, W., McKeown, J. and Mutchler, J. (1989). 'A test of the incremental explanatory power of opinions qualified for consistency and uncertainty'. The Accounting Review, 64: 28-48.
15. Huber, P. (1967). 'The behaviour of maximum likelihood estimates under non-standard conditions'. Proceedings of the Fifth Berkeley Symposium on Mathematical Statistics and Probability, 1: 221-233.
16. Johnson, W. and Lys, T. (1990). 'The market for audit services: Evidence from voluntary auditor changes'. Journal of Accounting and Economics, 12: 281-308.
17. Koh, H. (1991). 'Model predictions and auditor assessments of going concern status'. Accounting and Business Research, 21: 331-338.
18. Lennox, C. (1999). 'Identifying failing companies: A re-evaluation of the logit, probit and DA approaches'. Journal of Economics and Business (forthcoming).
19. Menon, K. and Williams, D. (1991). 'Auditor credibility and initial public offerings'. The Accounting Review, 66: 313-332.
20. Morris, R. (1997). Early warning indicators of corporate failure: A critical review of previous research and further empirical evidence. Ashgate Publishing in association with the ICAEW.
21. Nichols, D. and Smith, D. (1983). 'Auditor credibility and auditor changes'. Journal of Accounting Research, 21: 534-544.
22. Schwartz, K. and Soo, B. (1995). 'An analysis of form 8-K disclosures of auditor changes by firms approaching bankruptcy'. Auditing: A Journal of Practice and Theory, 14: 125-136.
23. Simunic, D. and Stein, M. (1987). 'Production differentiation in auditing: A study of auditor choice in the market for new issues'. Canadian Certified General Accountants' Research Foundation.
24. Titman, S. and Trueman, B. (1986). 'Information quality and the valuation of new issues'. Journal of Accounting and Economics, 8: 159-172.