This study examines the effect of audit quality （AQ） on the earnings response coefficient （ERC） based on a sample of 1,884 firm-year observations comprising 471 firms listed on the Bursa Malaysia from 2007 to 2010...This study examines the effect of audit quality （AQ） on the earnings response coefficient （ERC） based on a sample of 1,884 firm-year observations comprising 471 firms listed on the Bursa Malaysia from 2007 to 2010. This study tests whether AQ affects ERC after controlling the established determinants of ERC： beta, growth, earnings persistence, and size. Using reverse regression, the study confirms that Big 4 is significant and positive to ERC. Auditor switching from non-Big 4 to Big 4 indicates the same results; however, the switching of auditors among Big 4 is not significant. The study thus provides systematic and comprehensive additional evidence on the effect of AQ via the measurement of Big 4; and auditor switching from non-Big 4 to Big 4 and switching among Big 4 on ERC. This is an important contribution to the literature but especially so given that the evidence comes from Malaysia, an emerging economy, whereas the existing empirical literature relates mainly to the developed countries.展开更多
Dysfunctional audit behavior （DAB） is an accepted problem, associated with decreased audit quality. This study develops and tests a theoretical model that identifies factors contributing to DAB. Budget emphasis, lea...Dysfunctional audit behavior （DAB） is an accepted problem, associated with decreased audit quality. This study develops and tests a theoretical model that identifies factors contributing to DAB. Budget emphasis, leadership behavior structure and consideration, and effectiveness of audit review were examined as antecedents of attitudes toward DAB. The findings produced consistent evidence in support of the theoretical model. It is not an emphasis on meeting budgets that leads to undesirable behavior, but contextual variables, such as leadership behavior structure and effectiveness of audit review.展开更多
文摘This study examines the effect of audit quality （AQ） on the earnings response coefficient （ERC） based on a sample of 1,884 firm-year observations comprising 471 firms listed on the Bursa Malaysia from 2007 to 2010. This study tests whether AQ affects ERC after controlling the established determinants of ERC： beta, growth, earnings persistence, and size. Using reverse regression, the study confirms that Big 4 is significant and positive to ERC. Auditor switching from non-Big 4 to Big 4 indicates the same results; however, the switching of auditors among Big 4 is not significant. The study thus provides systematic and comprehensive additional evidence on the effect of AQ via the measurement of Big 4; and auditor switching from non-Big 4 to Big 4 and switching among Big 4 on ERC. This is an important contribution to the literature but especially so given that the evidence comes from Malaysia, an emerging economy, whereas the existing empirical literature relates mainly to the developed countries.
文摘Dysfunctional audit behavior （DAB） is an accepted problem, associated with decreased audit quality. This study develops and tests a theoretical model that identifies factors contributing to DAB. Budget emphasis, leadership behavior structure and consideration, and effectiveness of audit review were examined as antecedents of attitudes toward DAB. The findings produced consistent evidence in support of the theoretical model. It is not an emphasis on meeting budgets that leads to undesirable behavior, but contextual variables, such as leadership behavior structure and effectiveness of audit review.
