Publications

Detailed Information

Do Auditors Change their Behavior after Litigation? - Evidence from Audit Fee and Audit Quality - : 감사인은 소송을 당한 이후에 감사보수와 감사품질을 어떻게 변화시키는가?

Cited 0 time in Web of Science Cited 0 time in Scopus
Authors

하원석

Advisor
곽수근
Major
경영대학 경영학과
Issue Date
2016-02
Publisher
서울대학교 대학원
Keywords
litigationaudit qualityaudit feeearnings response coefficientsagency costs
Description
학위논문 (석사)-- 서울대학교 대학원 : 경영학과 회계학, 2016. 2. 곽수근.
Abstract
This study examines whether auditors change their behavior in terms of audit quality and audit fees after litigation. The findings in this paper are summarized as follows. First, auditors increase audit efforts to improve audit quality after litigation against them, as suggested by Lennox and Li(2014). Second, auditors charge higher audit fees for both continuing and new clients after litigation against them. These results support the hypothesis that auditors adjust audit pricing mechanism to reflect increased audit efforts and/or expected legal liability. In addition, this paper investigates how litigation against auditors affects the way investors evaluate audit quality in the capital market. It is found that earnings response coefficients decrease with auditors exposure to litigation. In particular, the decreases in earnings response coefficients are more pronounced for firms with higher agency costs, supporting the role of auditors in reducing agency costs.
Language
English
URI
https://hdl.handle.net/10371/124640
Files in This Item:
Appears in Collections:

Altmetrics

Item View & Download Count

  • mendeley

Items in S-Space are protected by copyright, with all rights reserved, unless otherwise indicated.

Share