The analytical model of Matsumura and Tucker (1995) provides a rigorous economic rationale for the value of second-partner reviews. The model examines the review's role in promoting accurate, unbiased decisions by an engagement partner who possesses imperfect information and is subject to...

This research investigates the relationship between reputation and two types of agency costs, namely those associated with auditing and those associated with value-reducing activities of management resulting from their capitalizing on asymmetric information by misreporting income. A...