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Author: Daniel Aobdia
Publisher:
ISBN:
Category :
Languages : en
Pages : 100
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Book Description
This dissertation provides empirical evidence consistent with auditors transferring some information from one client to another and, as a consequence, with same industry rivals being reluctant to share the same auditor due to information spillover concerns. In the first essay, using exogenous shocks to the auditing industry, including large auditor mergers and the collapse of Arthur Andersen, I document a reluctance of rivals to engage the same auditor due to information spillover concerns. This reluctance is more evident in concentrated industries where barriers to mobility, proxied by differentiation and capital expenditure levels, are low. More secretive manufacturing firms are also more reluctant to share their auditor with a rival. I also find weak evidence that the concern for information spillovers is lessened when rivals are dissimilar in terms of sales or when they are headquartered in the same state, where other conduits for information spillover, including employee turnover, are present. Last, I find some evidence that auditors extract rents from clients concerned about information spillovers. In the second essay, I present evidence consistent with auditors being a conduit for information spillovers. My results indicate that firms sharing the same auditor are more alike in their investment, research and development, advertising and SG&A decisions compared to firms not sharing the same auditor. Causality is established using the collapse of Arthur Andersen as a natural experiment that broke channels for information spillovers for former clients of the auditing firm. Results are still valid after the enactment of Sarbanes-Oxley (SOX), indicating that the core auditing practice of auditors is a conduit for information spillovers. I also find some evidence that information spillovers are more prominent at the auditor office level. Last, additional evidence from patent citations indicates that information spillovers through sharing the same auditor may lead to dissemination of technological innovations among client firms.
Author: Daniel Aobdia
Publisher:
ISBN:
Category :
Languages : en
Pages : 100
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Book Description
This dissertation provides empirical evidence consistent with auditors transferring some information from one client to another and, as a consequence, with same industry rivals being reluctant to share the same auditor due to information spillover concerns. In the first essay, using exogenous shocks to the auditing industry, including large auditor mergers and the collapse of Arthur Andersen, I document a reluctance of rivals to engage the same auditor due to information spillover concerns. This reluctance is more evident in concentrated industries where barriers to mobility, proxied by differentiation and capital expenditure levels, are low. More secretive manufacturing firms are also more reluctant to share their auditor with a rival. I also find weak evidence that the concern for information spillovers is lessened when rivals are dissimilar in terms of sales or when they are headquartered in the same state, where other conduits for information spillover, including employee turnover, are present. Last, I find some evidence that auditors extract rents from clients concerned about information spillovers. In the second essay, I present evidence consistent with auditors being a conduit for information spillovers. My results indicate that firms sharing the same auditor are more alike in their investment, research and development, advertising and SG&A decisions compared to firms not sharing the same auditor. Causality is established using the collapse of Arthur Andersen as a natural experiment that broke channels for information spillovers for former clients of the auditing firm. Results are still valid after the enactment of Sarbanes-Oxley (SOX), indicating that the core auditing practice of auditors is a conduit for information spillovers. I also find some evidence that information spillovers are more prominent at the auditor office level. Last, additional evidence from patent citations indicates that information spillovers through sharing the same auditor may lead to dissemination of technological innovations among client firms.
Author: Tyler Kleppe
Publisher:
ISBN:
Category :
Languages : en
Pages : 136
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Book Description
In this study, I examine whether companies realize operational benefits from making "targeted auditor switches" (i.e., engaging a new auditor recently dismissed by a competitor company). While prior work provides evidence consistent with companies perceiving that auditor information spillovers are costly, there is sparse extant evidence as to whether auditors actually do transfer operational information across companies. I find that companies that switch to a competitor's former auditor realize significant subsequent improvements in operating performance, and I provide evidence that the association between targeted auditor switches and improvements in operating performance varies predictably with several across- and within-market factors. In addition, I find that the operational improvements associated with targeted switches are driven by reductions in operating expenditures as opposed to increases in revenues. Collectively, my findings suggest that operational information can be transferred across companies via external auditors and that companies' concerns over sharing an auditor with a competitor are based on real information spillover costs.
Author: Sheng Liu
Publisher:
ISBN:
Category : Accounting
Languages : en
Pages : 0
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Book Description
This study examines whether the strategic fit between supply chain participants is associated with supplier audit fees. I posit that strategic fit should enhance the trust and information sharing between trading partners and mitigate the business risk and inherent risk of suppliers, thereby leading to lower audit fees. I utilize regulation-mandated major customer disclosure to construct a dataset consisting of supplier-customer dyads to investigate this proposition. The empirical results support my hypothesis. In addition, the results indicate that if auditors are industry specialists or have long tenures, they are more likely to recognize the benefits of strategic fit and lower the audit fees. Moreover, the results also show that when both parties are prospectors, strategic fit can help reduce audit fees for suppliers, more than when both follow defender strategies.
Author: Mr. Matthieu Bellon
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 40
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Book Description
Our study uses administrative data on firm-to-firm transactions and quasi- experimental variation in the rollout of electronic invoicing reforms in Peru to study the diffusion of e-invoicing through firm networks and its effect on tax compliance. We find that voluntary e-invoicing adoption is higher amongst firms with partners who are mandated to adopt e-invoicing, implying positive technology adoption spillovers. Spillovers are stronger from downstream partners and from export-oriented firms. Firms are less likely to continue transacting with a partner who has been mandated into e-invoicing, with the effect only partially reversed if both firms adopt e-invoicing, suggesting that network segmentation may occur. Smaller firms who transact with partners mandated into e-invoicing report 11 percent more sales and pay 17 more VAT in the year that their partner is mandated to adopt e-invoicing, suggesting positive spillovers in tax compliance behavior for this subset of firms.
Author: Stijn Claessens
Publisher:
ISBN:
Category : Capital market
Languages : en
Pages : 36
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Book Description
This paper investigates the benefits and associated agency costs of using internal capital markets through affiliating with groups using data of two thousand firms from nine East Asian economies between 1994-96. We find that mature and slow-growing firms with ownership structures more likely to create agency problems gain more from group affiliation, while young and high-growth firms more likely lose. Agency problems are important explanatory factors of firm value in economies outside Japan, but less so in Japan. Consistent with the literature, financially-constrained firms benefit from group affiliation. Our results are robust to different time periods and estimation techniques.
Author: Great Britain: Parliament: House of Commons: Environmental Audit Committee
Publisher: The Stationery Office
ISBN: 9780215036896
Category : Political Science
Languages : en
Pages : 146
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Book Description
The Committee's report finds that, over the past decade, the Government has failed to rise fully to the domestic challenge of climate change, and its likely failure to reach its domestic target on reducing carbon dioxide emissions will have a damaging impact on the UK's international leadership role in reaching a post-Kyoto agreement. Although the Government has introduced some new arrangements for co-ordinating climate change policy more effectively across Whitehall, the scale of the challenge and the complexity involved in radically restructuring the economy to bring about the needed emission reduction targets requires further changes. There is a need for a strategic review of Government action to ensure that the leadership and responsibility for the development and delivery of climate change mitigation and adaptation policies is clear, as well as a new long-term policy framework to ensure that policies introduced today do not undermine our ability to reduce emissions in the future. The Committee also recommends that a new and authoritative body be established within the Cabinet Office to drive forward policy and to diminish the potential for a conflict of objectives between departments.
Author: Jonathan Haskel
Publisher: Princeton University Press
ISBN: 0691183295
Category : Business & Economics
Languages : en
Pages : 292
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Book Description
Early in the twenty-first century, a quiet revolution occurred. For the first time, the major developed economies began to invest more in intangible assets, like design, branding, and software, than in tangible assets, like machinery, buildings, and computers. For all sorts of businesses, the ability to deploy assets that one can neither see nor touch is increasingly the main source of long-term success. But this is not just a familiar story of the so-called new economy. Capitalism without Capital shows that the growing importance of intangible assets has also played a role in some of the larger economic changes of the past decade, including the growth in economic inequality and the stagnation of productivity. Jonathan Haskel and Stian Westlake explore the unusual economic characteristics of intangible investment and discuss how an economy rich in intangibles is fundamentally different from one based on tangibles. Capitalism without Capital concludes by outlining how managers, investors, and policymakers can exploit the characteristics of an intangible age to grow their businesses, portfolios, and economies.
Author: World Bank
Publisher: World Bank Publications
ISBN: 1464814953
Category : Business & Economics
Languages : en
Pages : 511
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Book Description
Global value chains (GVCs) powered the surge of international trade after 1990 and now account for almost half of all trade. This shift enabled an unprecedented economic convergence: poor countries grew rapidly and began to catch up with richer countries. Since the 2008 global financial crisis, however, the growth of trade has been sluggish and the expansion of GVCs has stalled. Meanwhile, serious threats have emerged to the model of trade-led growth. New technologies could draw production closer to the consumer and reduce the demand for labor. And trade conflicts among large countries could lead to a retrenchment or a segmentation of GVCs. World Development Report 2020: Trading for Development in the Age of Global Value Chains examines whether there is still a path to development through GVCs and trade. It concludes that technological change is, at this stage, more a boon than a curse. GVCs can continue to boost growth, create better jobs, and reduce poverty provided that developing countries implement deeper reforms to promote GVC participation; industrial countries pursue open, predictable policies; and all countries revive multilateral cooperation.
Author: Yushi Jiang
Publisher: Springer Nature
ISBN: 9464630361
Category : Business & Economics
Languages : en
Pages : 1906
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Book Description
This is an open access book. With the support of universities and the research of AEIC Academic Exchange Center, The 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022) will be held in Dali from June 24th to 26th. Compared with previous conferences, it will discuss more in-depth economic independent innovation, open cooperation and innovative business culture under the background of the new development stage, new situation and new journey era. There will be a broad exchange environment. Well-known experts, scholars or entrepreneurs in the field will be invited to make keynote reports. Contributing authors are also very welcome to actively participate in the conference and build an academic exchange ceremony.
Author: Andrea Ciani
Publisher: World Bank Publications
ISBN: 1464815585
Category : Business & Economics
Languages : en
Pages : 178
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Book Description
Economic and social progress requires a diverse ecosystem of firms that play complementary roles. Making It Big: Why Developing Countries Need More Large Firms constitutes one of the most up-to-date assessments of how large firms are created in low- and middle-income countries and their role in development. It argues that large firms advance a range of development objectives in ways that other firms do not: large firms are more likely to innovate, export, and offer training and are more likely to adopt international standards of quality, among other contributions. Their particularities are closely associated with productivity advantages and translate into improved outcomes not only for their owners but also for their workers and for smaller enterprises in their value chains. The challenge for economic development, however, is that production does not reach economic scale in low- and middle-income countries. Why are large firms scarcer in developing countries? Drawing on a rare set of data from public and private sources, as well as proprietary data from the International Finance Corporation and case studies, this book shows that large firms are often born large—or with the attributes of largeness. In other words, what is distinct about them is often in place from day one of their operations. To fill the “missing top†? of the firm-size distribution with additional large firms, governments should support the creation of such firms by opening markets to greater competition. In low-income countries, this objective can be achieved through simple policy reorientation, such as breaking oligopolies, removing unnecessary restrictions to international trade and investment, and establishing strong rules to prevent the abuse of market power. Governments should also strive to ensure that private actors have the skills, technology, intelligence, infrastructure, and finance they need to create large ventures. Additionally, they should actively work to spread the benefits from production at scale across the largest possible number of market participants. This book seeks to bring frontier thinking and evidence on the role and origins of large firms to a wide range of readers, including academics, development practitioners and policy makers.
