Essays on the quality of audited financial statements / vorgelegt von Ulf Mohrmann.

Format:

Book

Thesis/Dissertation

Author/Creator:

Mohrmann, Ulf, author.

Language:

English

Subjects (All):

Financial statements.

Auditing.

Physical Description:

1 online resource (vii, 285 pages)

Edition:

1st ed.

Place of Publication:

Berlin : Logos Verlag, [2016]

Summary:

Long description: The dissertation consists of four essays on the quality of audited financial statements. The first analysis investigates the association between several regulations of the audit market and earnings characteristics. The second essay differentiates between different drivers of audit quality after an auditor change by comparing the effects of voluntary and mandatory auditor changes. The third study analyses the different strategies of Big4 and non-Big4 auditors in dealing with Level 3 fair values. The fourth part examines banks' valuation behavior concerning Level 3 fair values.

Contents:

Intro

Summary

Zusammenfassung

1 Audit Market Regulation and Earnings Characteristics: Cross-Country Evidence on the Role of the Audit Market Structure

1.1 Introduction

1.2 Background

1.2.1 Restricted Auditor Liability

1.2.2 The Joint Provision of Audit and Non-Audit Services

1.2.3 The Disclosure of Auditor Fees

1.2.4 Fee Caps

1.2.5 Joint Audits

1.2.6 The Mandatory Rotation of the Audit Firm

1.2.7 The Mandatory Rotation of the Audit Partner

1.2.8 The Market Structure

1.3 Earnings Characteristics

1.3.1 Discretionary Accruals

1.3.2 Loss Avoidance

1.3.3 Asymmetric Timeliness

1.4 Data and Research Design

1.4.1 Research Design

1.4.2 Sample Selection and Descriptive Statistics

1.5 Results

1.5.1 Unconditional Analysis

1.5.2 Analysis in Changes

1.5.3 Placebo Test

1.6 Analysis conditional on the market structure

1.7 Robustness Checks

1.8 Conclusion

References

2 What are the Drivers of Audit Quality after an Auditor Change? European Evidence from Voluntary and Mandatory Auditor Switches

2.1 Introduction

2.2 Background and Hypotheses Development

2.2.1 The Relation between Auditor Changes and Audit Quality

2.2.2 Hypotheses Development

2.3 Research Design and Sample Description

2.3.1 Estimation of Discretionary Accruals

2.3.2 Empirical Models

2.3.3 Sample Description

2.4 Empirical Results

2.5 Robustness Checks

2.6 Conclusion

3 Fool's Gold or Value for Money? The Link between Abnormal Audit Fees, Audit Firm Size, Fair Value Disclosures, and Market Valuation

3.1 Introduction

3.2 Background and Hypotheses Development

3.2.1 The Fair Value Hierarchy and its Relation to Auditing

3.2.2 Hypotheses Development

3.3 Empirical Method

3.3.1 Research Design

3.3.2 Sample Description

3.4 Empirical Results.

3.4.1 Descriptive Statistics

3.4.2 The Differences between the Big 4 and the non-Big 4 Audit Firms in the Association between Fair Value Assets and Tobin's Q

3.4.3 The Differences between the Big 4 and the non-Big 4 Audit Firms in the Association between Abnormal Audit Fees and Tobin's Q

3.4.4 The Effect of Abnormal Audit Fees on the Association between the Level 3 Assets and the Market Value, given Audit Firm Size

3.4.5 Differentiation between Positive and Negative Abnormal Audit Fees

3.5 Sensitivity Analyses

3.5.1 The Definition of the Abnormal Audit Fees

3.5.2 Analysis for the Fair Value Liabilities

3.5.3 The Effect of the 2008 US Banking Crisis

3.6 Conclusion

4 The Link between Level 3 Assets of Banks and their Default Risk and Default Costs

4.1 Introduction

4.2 Background and Hypotheses Development

4.2.1 Fair Value Accounting and Related Literature

4.2.2 Hypotheses Development

4.3 Research Design and Sample Description

4.3.1 Determinants of the Share of Level 3 Assets

4.3.2 The Link between Level 3 Assets and Default Risk

4.3.3 The Link between Level 3 Assets and Default Risk over Time

4.3.4 The Level 3 Assets and the Costs of Default

4.3.5 The Sample Composition

4.4 Results

4.4.1 Determinants of the Share of Level 3 Assets

4.4.2 The Link between Level 3 Assets and Default Risk

4.4.3 The Link between Level 3 Assets and Default Risk over Time

4.4.4 The Level 3 Assets and Costs of Default

4.5 Endogeneity and Analysis in Changes

4.6 Conclusion

Complete References

Appendix Chapter 1

Appendix Chapter 2

Appendix Chapter 3

Appendix Chapter 4

Abgrenzung.

Notes:

Description based on print version record.

PublicationDate: 20160215

Dissertation Universität Konstanz [2016]

ISBN:

3-8325-9425-6