The Japanese Institute of Certified Public Accountants (JICPA) formerly issued a standard audit fees table in accordance with the Certified Public Accountants Law. This table was intended to serve as a reference for the determination of audit fees, but in practice, the standard fees were applied...

We examine the effect of managerial ownership on the demand for accounting conservatism as measured by the asymmetric timeliness of earnings (Basu, 1997). The separation of ownership and control as reflected by the levels of managerial ownership induce two agency problems between managers and...

This study examines the association among abnormal accruals, long-term stock returns, and probability of informed trading. Some analytical and empirical research for postearnings announcement drift provide evidence that a high arrival rate of informed traders helps stock prices become more...

We examine the relationship between accuracy in management forecasts and the effectiveness of internal controls by using the unique setting in Japan, where disclosing management forecasts is effectively mandated. Feng et al. (2009) posit and find that managers of firms reporting internal control...

This study investigates the Big 4 auditors' conservatism using Japanese firms' abnormal accruals. We focus on two types of auditors' conservatism, namely, the preference for income decreasing accounting choices and having lower thresholds for issuing going concern opinions. We find that the Big...

We examine the effect of managerial ownership on the demand for accounting conservatism in Japan. We find that within the low and high levels of managerial ownership, managerial ownership is significantly negatively related to the asymmetric timeliness of earnings, which is consistent with the...

We investigate the Japanese Big 4 auditors' conservatism. Recent increasing litigation risks and scrutiny from the public are likely to make the Japanese Big 4 auditors conservative. Our results indicate that the Big 4 are effective in deterring income-decreasing earnings management by clients....