Auditor Choice: After Enron

Information Quality, Auditor Reputation and Capitalization Effects: The Legacy of Enron

The purpose of this paper is to investigate the change in quality of the information environment preand postEnron. We test whether the reputations of all auditors declined as a result of Enron. The impact on the market risk premium is also examined. An information processing model is developed to show that a structural break in information quality can produce a variety of outcomes for the repon...

The Effect of Auditor Choice on Financing Decisions

We provide evidence that the financing decisions of companies that are audited by a Big Six auditor are less affected by information asymmetry. Specifically, these companies enjoy greater financial flexibility and depend less on favorable market conditions for their equity issuance decisions than those not audited by a Big Six firm. As a consequence, their debt ratios are less affected either b...

Auditor Choice and Cost of Debt Financing for Private SMEs

This study examines relation of the auditor choice and cost of debt financing for private SMEs (small and medium sized enterprises). In particular, it examines whether choice of a certified auditor or reputable international audit firm provides economic value to private SMEs as a factor lowering firms' information problems and cost of debt financing in the capital markets. Using time-series cro...

Corporate governance after Enron: recommendation and legal responses

Management Demographic Characteristics, Auditor Choice and Earnings Quality: Empirical Evidence from Iran

Recent accounting and management literature shows that demographic character-istics of top management and corporate performance are related. Accordingly, using a two-stage least squares regression model (2SLS), this study examines the relationship between some management demographic characteristics including CEO tenure, gender and level of education with earnings quality and auditor choice. Sam...