Journal article
A new measure of accounting quality
Review of accounting studies, Vol.19(1), pp.506-538
03/01/2014
DOI: 10.1007/s11142-013-9253-8
Abstract
This study develops a measure of accounting quality based on audit fees. Adopting a neoclassical view of the audit market, we argue that unexplained audit fees should contain information about accounting quality. We find that our measure of unexplained audit fees correlates positively with other empirical measures of quality. We further show that our measure of accounting quality is incrementally predictive of fraud, restatements, and SEC comment letters, controlling for other measures of quality. Overall, we believe that the information in audit fees can be used to provide an alternative measure of a firm's accounting quality.
Details
- Title: Subtitle
- A new measure of accounting quality
- Creators
- Paul Hribar - University of IowaTodd Kravet - The University of Texas at DallasRyan Wilson - University of Oregon
- Resource Type
- Journal article
- Publication Details
- Review of accounting studies, Vol.19(1), pp.506-538
- Publisher
- Springer Nature
- DOI
- 10.1007/s11142-013-9253-8
- ISSN
- 1380-6653
- eISSN
- 1573-7136
- Number of pages
- 33
- Language
- English
- Date published
- 03/01/2014
- Academic Unit
- Accounting
- Record Identifier
- 9984380480202771
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