UM  > Faculty of Business Administration
Positive externality of analyst coverage upon audit services: evidence from China
Junxiong Fang1; In-Mu Haw2; Veicheng Yu3; Xu Zhang4
2014-04-03
Source PublicationAsia-Pacific Journal of Accounting & Economics
ABS Journal Level2
ISSN1608-1625
Volume21Issue:2Pages:186-206
Abstract

Using China’s data, we find that analyst coverage helps reduce audit fees, and such effect is more pronounced for small firms, less-educated auditors, and small auditors. Our findings reveal positive externality of analyst coverage upon audit services in China, especially for those auditors weak in professional expertise, or hard to resist the pressure from their clients. Such evidence implies that the reputation protection hypothesis seems less applicable in an emerging market where the market share of big auditors is low. Our findings also provide alternative evidence justifying exchange-sponsored analyst coverage in practice intended to improve information environment of small firms.

KeywordAnalyst Coverage Audit Fees Audit Risk Audit Effort
DOIhttps://doi.org/10.1080/16081625.2013.854949
Indexed BySSCI
Language英语
WOS Research AreaBusiness & Economics
WOS SubjectBusiness, Finance ; Economics
WOS IDWOS:000332168500004
Fulltext Access
Citation statistics
Cited Times [WOS]:3   [WOS Record]     [Related Records in WOS]
Document TypeJournal article
CollectionFaculty of Business Administration
DEPARTMENT OF ACCOUNTING AND INFORMATION MANAGEMENT
Corresponding AuthorVeicheng Yu
Affiliation1.Department of Accounting, Fudan University, Shanghai, China
2.Department of Accounting, Texas Christian University, Fort Worth, TX, USA
3.Asian Institute of Management, Makati City, Philippines
4.Department of Accounting and Information Management, University of Macau, Macau
Recommended Citation
GB/T 7714
Junxiong Fang,In-Mu Haw,Veicheng Yu,et al. Positive externality of analyst coverage upon audit services: evidence from China[J]. Asia-Pacific Journal of Accounting & Economics,2014,21(2):186-206.
APA Junxiong Fang,In-Mu Haw,Veicheng Yu,&Xu Zhang.(2014).Positive externality of analyst coverage upon audit services: evidence from China.Asia-Pacific Journal of Accounting & Economics,21(2),186-206.
MLA Junxiong Fang,et al."Positive externality of analyst coverage upon audit services: evidence from China".Asia-Pacific Journal of Accounting & Economics 21.2(2014):186-206.
Files in This Item:
There are no files associated with this item.
Related Services
Recommend this item
Bookmark
Usage statistics
Export to Endnote
Google Scholar
Similar articles in Google Scholar
[Junxiong Fang]'s Articles
[In-Mu Haw]'s Articles
[Veicheng Yu]'s Articles
Baidu academic
Similar articles in Baidu academic
[Junxiong Fang]'s Articles
[In-Mu Haw]'s Articles
[Veicheng Yu]'s Articles
Bing Scholar
Similar articles in Bing Scholar
[Junxiong Fang]'s Articles
[In-Mu Haw]'s Articles
[Veicheng Yu]'s Articles
Terms of Use
No data!
Social Bookmark/Share
All comments (0)
No comment.
 

Items in the repository are protected by copyright, with all rights reserved, unless otherwise indicated.