Understanding and the interpretation of financial statements is an important factor for economic entities, for making the right decisions. Nowadays, more and more is noticed the general tendency of the harmonization of the Directive IV of the European Committee with International Financial...

While inputs into analysts' valuation models have been documented (Brown et al. 2015), analysts' prior perceptions of reported financial statement items have not yet been studied. It is important to be aware of analysts' perceptions of the current accounting standards because they are, to some...

We analyze whether information asymmetry affects three major aspects of the audit process using an instrumental variables research design that exploits exogenous increases in information asymmetry stemming from brokerage house mergers and closures. Consistent with our predictions, we find that a...

We investigate whether firms' tax planning affects the accuracy of analysts' forecasts. Tax planning can exacerbate the complexity of firms' operations through strategic choices to exploit tax laws. Because of its effect on firms' operations, tax planning can influence analysts' efforts to...

We study the relation between audit committee accounting expertise, analyst following, and market liquidity. Our main results indicate that analyst following increases subsequent to the appointment of an accounting expert to the audit committee. We also provide evidence that accrual quality, as...

We examine auditor independence in the banking industry by analyzing the relation between fees paid to the auditors and the extent of earnings management through loan loss provisions (LLP). We also examine whether this relation differs across large banks whose managements are required under the...

This paper examines the association between auditor's independence and financial analysts' forecast revisions in the specific case of goodwill impairment testing. Using a sample of 1,247 firm-year observations representing 177 firms listed on the CAC All-Tradable (the former SBF 250) over the...

Prior studies examining the interactions of auditors and analysts have generally focused on how auditors influence analysts' forecasts or audit clients' behavior relative to those forecasts without considering how analysts might influence auditors. However, auditing standards encourage auditors...

Differences in countries' institutional settings are believed to impact on the extent to which benefits can be achieved from the adoption of International Financial Reporting Standards (IFRS). We investigate seven proxies that have been used to distinguish between institutional settings,...

We examine whether financial analysts’ questions during earnings conference calls can help auditors assess the quality of firms’ internal control over financial reporting. We argue that financial analysts’ expertise on firm external factors complements auditors’ private knowledge on firm...