This paper provides the first evidence that state-level liability standards affect auditor behavior. We hypothesize that auditors demand more conservative reporting when their insurance clients are domiciled in states with more stringent standards for third party claims against the auditor for...

This paper examines the association between external monitoring and earnings management by property-casualty insurers. We extend previous work by Petroni and Beasley [1996] by expanding the set of external monitors to include both auditors and actuaries. The issue that we address is whether...

This study investigates the extent to which property-casualty insurers during the 1990-1995 period select levels of loss reserves, net capital gains and net stock transactions to meet solvency and tax reporting goals. We use simultaneous equations to model the three discretionary choices...