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hal.structure.identifierDauphine Recherches en Management [DRM]
dc.contributor.authorCasta, Jean-François*
hal.structure.identifier
dc.contributor.authorLobo, Gerald J.*
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dc.contributor.authorPaugam, Luc*
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dc.contributor.authorZhang, Dana*
dc.date.accessioned2013-06-26T08:56:16Z
dc.date.available2013-06-26T08:56:16Z
dc.date.issued2013
dc.identifier.urihttps://basepub.dauphine.fr/handle/123456789/11491
dc.language.isoenen
dc.subjectVérification comptable
dc.subject.ddc657en
dc.subject.classificationjelM.M4.M42en
dc.titleThe Effect of Joint Auditor Pair On Timely Loss Recognition: Evidence From Impairment Tests
dc.typeCommunication / Conférence
dc.contributor.editoruniversityotherUniversity of Houston;États-Unis
dc.description.abstractenAs some regulators view joint audit as a way to enhance audit quality, French law already requires two (joint) auditors. We examine the impact of auditor pairs on a key mechanism ensuring timely loss recognition: impairment tests. Impairment tests rely on unverifiable fair value estimates and are oftenmanipulated by managers. In a simple game theory model, we assume that Big 4 auditors face higher reputation and litigation costs than non-Big 4. We demonstrate that pairs of Big 4 auditors are likely to lead to the prisoner’s dilemma solution, according to which no auditor takes corrective actions.Conversely, pairs of Big 4 and non-Big 4 auditors increase Big 4’s incentives to force firms to book timely impairments. From a sample of French listed firms(SBF 120) from 2006 to 2009, we provide evidence that: (1) Big 4–Big 4 auditor pairs book more untimely impairments than othercombinations; (2) Big4–Big 4 auditor pairs manage more impairment tests’ transparency ; (3) Big 4–Big 4 auditor pairs do not significantly improve earnings quality as compared to Big 4–non-Big 4 pairs.
dc.subject.ddclabelContrôle de gestion Comptabilitéen
dc.relation.conftitle36th European Accounting Association annual congress
dc.relation.confcityParis
dc.relation.confcountryFRANCE
dc.relation.forthcomingnonen
dc.description.ssrncandidatenon
dc.description.halcandidateoui
dc.description.readershiprecherche
dc.description.audienceInternational
dc.date.updated2019-06-12T10:52:50Z
hal.identifierhal-01637689*
hal.version1*
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