عنوان انگلیسی مقاله:

Abnormal audit delays, earnings quality and firm value in the USA

ترجمه عنوان مقاله: تاخیر حسابرسی، کیفیت درآمد در ارزش شرکت در ایالات متحده آمریکا

رشته: مالی و حسابداری،حسابرسی

سال انتشار: 2016

تعداد صفحات مقاله انگلیسی: 26 صفحه

منبع: Emerald

نوع فایل: pdf

دانلود اصل مقاله

چکیده مقاله

Abstract Abnormal audit delays, earnings quality and firm value in the USA

Purpose: This paper aims to address three questions: Does the abnormal delay in the audit processsignal poor earnings quality? Is this information about earnings quality incremental to that contained in earnings report delay? Does the market use this information about earnings quality in valuing the firm?

Design/methodology/approach: Data are obtained from four databases: Compustat, Audit Analytics, Compact-Disclosure and I/B/E/S. Complete data are available for 5,298 firms for 22,492 firm-years. The paper uses a two-stage model. In the first stage, a detailed model using determinants from extant research tries to explain the audit delay. In the second stage, the unexplained delay from the first stage is used in the association tests with earnings quality.

Findings: The paper presents evidence that abnormal delays in the audit process are inversely associated with earnings quality. When the market values a dollar of reported earnings, it appears to discount the valuation by the extent of abnormal audit delay.

Originality/value: The current paper contributes to existing research in several ways. First, it establishes a comprehensive model to explain audit delays and provides a tool to measure abnormal audit delays. Second, it provides evidence of inverse association between abnormal audit delay and seven proxies of earnings quality. Finally, the paper shows that abnormal audit delay creates skepticism among investors about earnings quality and they value the disclosed earnings after discounting for such delay.

Keywords: Firm value, Earnings quality, Audit delay, Earnings disclosure

Paper: type Research paper

مقدمه مقاله

The purpose of this paper is to examine the association between abnormal auditde lays and earnings quality and its effect on the earnings valuation coefficient for firms in the USA[1]. Prior research (discussed in the next section) has examined the determinants of audit delays. Audit delays can cause delay in annual accounting disclosures. Delayed earnings announcements generally cause less market reaction than early announcements due to lack of timeliness or even negative reactions, as they are likely to contain bad news.

However, the research question that abnormal audit delay, that may be caused by material disagreement between the auditor and client regarding accounting practices and/or calculation of accounting numbers, may contain information about quality of earnings beyond that conveyed by earnings report delay has not been investigated by extant research. A recent paper by Salterio (2012) suggests that positive abnormal audit delays indicate auditor– client management negotiations took place. Moreover, the market may use this incremental information about earnings quality in the firm’s valuation process.

http://modir3-3.ir/images/%D8%B3%D9%81%D8%A7%D8%B1%D8%B4%20%D8%AA%D8%B1%D8%AC%D9%85%D9%87%20%D9%BE%D8%A7%DB%8C%D8%A7%D9%86%20%D9%86%D8%A7%D9%85%D9%87.png

مطالب مرتبط