Who cares about auditor reputation?

Contemporary Accounting Research

Volumn 22, Issue 3, 2005, Pages 549-586

  Barton, Jan ^a  

^a EMORY UNIVERSITY   (United States)

Author keywords

Audit quality; Capital markets visibility; Financial reporting credibility; Reputation

Indexed keywords

EID: 25444498358     PISSN: 08239150     EISSN: None     Source Type: Journal    
DOI: 10.1506/C27U-23K8-E1VL-20R0     Document Type: Review

References (64)

1. Aboody, D., M. E. Barth, and R. Kasznik. 2004. Firms' voluntary recognitions of stock-based compensation expense. Journal of Accounting Research 42 (2): 123-50.
2. Altman, E. 1983. Corporate financial distress. New York: John Wiley.
3. Association for Investment Management and Research (AIMR). 2000. AIMR corporate disclosure survey: A report to AIMR. St. Louis, MO: Fleishman-Hillard Research.
4. Asthama, S. C., S. Balsam, and J. Krishnan. 2003. Audit firm reputation and client stock price reactions: Evidence from the Enron experience. Working paper, Temple University.
5. Beatty, R. P., and J. R. Ritter. 1986. Investment banking, reputation, and underpricing of initial public offerings. Journal of Financial Economics 15 (1-2): 213-32.
6. Benston, G. J. 1985. The market for public accounting services: Demand, supply and regulation. Journal of Accounting and Public Policy 4 (1): 33-79.
7. First published in The Accounting Journal 2 (1): 2-46 (1979-80).
8. Benston, G. J., and A. L. Hartgraves. 2002. Enron: What happened and what we can learn from it. Journal of Accounting and Public Policy 21 (2): 105-27.
9. Brannigan, M., and J. D. Opdyke. 2002. Delta Air begins search for new auditor as it considers ending ties to Andersen. Wall Street Journal, January 29, A3.
10. Bushee, B. J. 1998. The influence of institutional investors on myopic R&D investment behavior. The Accounting Review 73 (3): 305-33.
11. Butler, M., A. J. Leone, and M. Willenborg. 2004. An empirical analysis of auditor reporting and its association with abnormal accruals. Journal of Accounting and Economics 37 (2): 139-65.
12. Chaney, P. K., and K. L. Philipich. 2002. Shredded reputation: The cost of audit failure. Journal of Accounting Research 40 (4): 1221-45.
13. Chen, J., H. Hong, and J. C. Stein. 2001. Forecasting crashes: Trading volume, past returns, and conditional skewness in stock prices. Journal of Financial Economics 61 (3): 345-81.
14. Copley, P. A., J. J. Gaver, and K. M. Gaver. 1995. Simultaneous estimation of the supply and demand of differentiated audits: Evidence from the municipal audit market. Journal of Accounting Research 33 (1): 137-55.
15. Cragg, J. G., and R. Uhler. 1970. The demand for automobiles. Canadian Journal of Economics 3 (3): 386-406.
16. Data Financial Press. 2001. Who audits America, 46th ed. Menlo Park, CA: Data Financial Press.
17. De Angelo, L. E. 1981. Auditor size and audit quality. Journal of Accounting and Economics 3 (3): 183-99.
18. DeFond, M. 1992. The association between changes in client firm agency costs and auditor switching. Auditing: A Journal of Practice & Theory 11 (1): 16-31.
19. Dopuch, N., and D. Simunic. 1980. The nature of competition in the auditing profession: A descriptive and normative view. In Regulation and the Accounting Profession, eds. J. W. Buckley and J. F. Weston, 77-94. Belmont, CA: Lifetime Learning.
20. Financial Accounting Standards Board (FASB). 1978. Statement of Financial Accounting Concepts No. 1: Objectives of financial reporting by business enterprises. Stamford, CT: FASB.
21. Firth, M. 1990. Auditor reputation: The impact of critical reports issued by government inspectors. RAND Journal of Economics 21 (3): 374-87.
22. Fombrun, C. 1996. Reputation: Realizing value from the corporate image. Boston: Harvard Business School Press.
23. Fombrun, C., and M. Shanley. 1990. What's in a name? Reputation building and corporate strategy. Academy of Management Journal 33 (2): 233-58.
24. Francis, J. R., and E. R. Wilson. 1988. Auditor changes: A joint test of theories relating to agency costs and auditor differentiation. The Accounting Review 63 (4): 663-82.
25. Gebhardt, W., C. Lee, and B. Swaminathan. 2001. Toward an implied cost of capital. Journal of Accounting Research 39 (1): 135-76.
26. Harris, N., and C. Bryan-Low. 2002. Questioning the books: Delta Air drops Andersen as its auditor. Wall Street Journal, March 8, A4.
27. Healy, P., and T. Lys. 1986. Auditor changes following Big Eight mergers with non-Big Eight audit firms. Journal of Accounting and Public Policy 5 (4): 251-65.
28. Healy, P. M., and K. G. Palepu. 2001. Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of Accounting and Economics 31 (1-3): 405-40.
29. Healy, P. M., and K. G. Palepu. 2003. The fall of Enron. The Journal of Economic Perspectives 17 (2): 3-26.
30. Hensley, S., and J. Weil. 2002. Questioning the books: In another blow, Andersen is sacked as Merck's auditor. Wall Street Journal, March 4, A10.
31. Hosmer, D. W., Jr., and S. Lemeshow. 1999. Applied survival analysis: Regression modeling of time to event data. New York: John Wiley.
32. Jensen, M. C., and W. H. Meckling. 1976. Theory of the firm: Management behavior, agency costs, and ownership structure. Journal of Financial Economics 3 (4): 305-60.
33. Johnson, W. B., and T. Lys. 1990. The market for audit services: Evidence from voluntary auditor changes. Journal of Accounting and Economics 12 (1-3): 281-308.
34. Karpoff, J. 1986. A theory of trading volume. The Journal of Finance 41 (5): 1069-87.
35. Kim, O., and R. Verrecchia. 1991. Trading volume and price reactions to public announcements. Journal of Accounting Research 29 (2): 302-21.
36. Klein, B., and K. Leffler. 1981. The role of market forces in assuming contractual performance. Journal of Political Economy 89 (4): 615-41.
37. Kreps, D., and R. Wilson. 1982. Reputation and imperfect information. Journal of Economic Theory 27: 253-79.
38. Lang, M. H., and R. Lundholm. 1996. Corporate disclosure policy and analyst behavior. The Accounting Review 71 (4): 467-92.
39. Lennox, C. S. 1999. Audit quality and auditor size: An evaluation of reputation and deep pockets hypotheses. Journal of Business Finance & Accounting 26 (7-8): 779-805.
40. Lennox, C. 2000. Do companies successfully engage in opinion-shopping? Evidence from the UK. Journal of Accounting and Economics 29 (3): 321-37.
41. Lunn, M., and D. McNeil. 1995. Applying Cox regression to competing risks. Biometrics 51 (2): 524-32.
42. Lys, T., and R. L. Watts. 1994. Lawsuits against auditors. Journal of Accounting Research 32 (Supplement): 65-93.
43. Milgrom, P., and J. Roberts. 1986. Relying on the information of interested parties. RAND Journal of Economics 17 (1): 18-32.
44. Mollenkamp, C. 2002. SunTrust replaces Arthur Andersen, ends 60-year link. Wall Street Journal, February 13, B7.
45. Palepu, K. 1985. Diversification strategy, profit performance and the entropy measure. Strategic Management Journal 6 (3): 239-55.
46. Podolny, J. M. 1994. Market uncertainty and the social character of economic exchange. Administrative Science Quarterly 39 (3): 458-83.
47. Prentice, R. L., J. D. Kalbfleisch, A. V. Peterson Jr., N. Flournoy, V. T. Farewell, and N. E. Breslow. 1978. The analysis of failure times in the presence of competing risks. Biometrics 34 (4): 541-54.
48. Public Accounting Report (PAR). 2001a. Andersen bails water as Enron ship sinks. December 15, 1.
49. Public Accounting Report (PAR). 2001b. Public Accounting Report's top 100 for 2001: America's 100 largest public accounting firms. August 31, S2-S3.
50. Public Accounting Report (PAR). 2002a. Enron debacle creates media frenzy. January 31, 3.
51. Public Accounting Report (PAR). 2002b. Public Accounting Report's annual survey of national accounting firms - 2002. February 28, 4-5.
52. Reed, B. J., M. A. Trombley, and D. S. Dhaliwal. 2000. Demand for audit quality: The case of Laventhol and Horwath's auditees. Journal of Accounting, Auditing & Finance 15 (2): 183-98.
53. Roberts, P. W., and G. R. Dowling. 2002. Corporate reputation and sustained superior financial performance. Strategic Management Journal 23 (12): 1077-93.
54. Schwartz, K. B., and K. Menon. 1985. Auditor switches by failing firms. The Accounting Review 60 (2): 248-61.
55. Shapiro, C. 1983. Premiums for high quality products as returns to reputations. Quarterly Journal of Economics 98 (4): 659-79.
56. Shu, S. Z. 2000. Auditor resignations: Clientele effects and legal liability. Journal of Accounting and Economics 29 (2): 173-205.
57. Skinner, D. J., and R. G. Sloan. 2002. Earnings surprises, growth expectations, and stock returns or don't let an earnings torpedo sink your portfolio. Review of Accounting Studies 7 (2-3): 289-312.
58. Stigler, G. J. 1962. Information in the labor markets. Journal of Political Economy 70 (5, part 2): 49-73.
59. U.S. General Accounting Office (GAO). 2003. Accounting firm consolidation: Selected large public company views on audit fees, quality, independence, and choice. GAO-03-1158. Washington, DC: GAO.
60. Wartick, S. L. 1992. The relationship between intense media exposure and change in corporate reputation. Business and Society 31 (1): 33-49.
61. Watts, R. L., and J. L. Zimmerman. 1983. Agency problems, auditing, and the theory of the firm: Some evidence. Journal of Law and Economics 26 (2): 613-33.
62. Watts, R. L., and J. L. Zimmerman. 1986. Positive accounting theory. Englewood Cliffs, NJ: Prentice Hall.
63. Weigelt, K., and C. Camerer. 1988. Reputation and corporate strategy: A review of recent theory and application. Strategic Management Journal 9 (5): 443-54.
64. Wilson, T. E., Jr., and R. A. Grimlund. 1990. An examination of the importance of an auditor's reputation. Auditing: A Journal of Practice & Theory 9 (Spring): 43-59.