Big Auditors, Private Firms and Accounting Conservatism: Spanish Evidence

References

• Ball , R. and Shivakumar , L. 2005 . Earnings quality in UK private firms: comparative loss recognition timeliness . Journal of Accounting and Economics , 39 ( 1 ) : 83 – 128 .
   Web of Science ®Google Scholar
• Ball , R. and Shivakumar , L. 2006 . The role of accruals in asymmetrically timely gain and loss recognition . Journal of Accounting Research , 44 ( 2 ) : 207 – 242 .
   Web of Science ®Google Scholar
• Ball , R. , Kothari , S. P. and Robin , A. 2000 . The effect of international institutional factors on properties of accounting earnings . Journal of Accounting and Economics , 29 ( 1 ) : 1 – 51 .
   Web of Science ®Google Scholar
• Ball , R. , Robin , A. and Sadka , G. 2008 . Is financial reporting shaped by equity markets or by debt markets? An international study of timeliness and conservatism . Review of Accounting Studies , 13 ( 2/3 ) : 168 – 205 .
   Web of Science ®Google Scholar
• Basu , S. 1997 . The conservatism principle and asymmetric timeliness of earnings . Journal of Accounting and Economics , 24 ( 1 ) : 3 – 37 .
   Web of Science ®Google Scholar
• Basu , S. 2005 . Discussion of ‘Conditional and unconditional conservatism: concepts and modelling’ . Review of Accounting Studies , 10 ( 2/3 ) : 311 – 321 .
   Web of Science ®Google Scholar
• Basu , S. , Hwang , L. and Jan , C. 2001 . “ Differences in conservatism between Big Eight and non-Big Eight auditors ” . Working Paper, Baruch College
   Google Scholar
• Beaver , W. H. and Ryan , S. G. 2005 . Conditional and unconditional conservatism: concepts and modelling . Review of Accounting Studies , 10 ( 2/3 ) : 269 – 309 .
   Web of Science ®Google Scholar
• Becker , C. L. , DeFond , M. L. , Jiambalvo , J. and Subramanyam , K. R. 1998 . The effect of audit quality on earnings management . Contemporary Accounting Research , 15 ( 1 ) : 1 – 24 .
   Google Scholar
• Beekes , W. , Pope , P. F. and Young , S. 2004 . The link between earnings timeliness, earnings conservatism and board composition: evidence from the UK . Corporate Governance: An International Review , 12 ( 1 ) : 47 – 59 .
   Web of Science ®Google Scholar
• Burgstahler , D. , Hail , L. and Leuz , C. 2006 . The importance of reporting incentives: earnings management in European private and public firms . The Accounting Review , 81 ( 5 ) : 983 – 1016 .
   Web of Science ®Google Scholar
• Bushman , R. and Piotroski , J. 2006 . Financial reporting incentives for conservative accounting: the influence of legal and political institutions . Journal of Accounting and Economics , 42 ( 1/2 ) : 107 – 148 .
   Web of Science ®Google Scholar
• Chaney , P. , Jeter , D. and Shivakumar , L. 2004 . Self-selection of auditors and audit pricing in private firms . The Accounting Review , 79 ( 1 ) : 51 – 72 .
   Web of Science ®Google Scholar
• Chung , R. , Firth , M. and Kim , J.-B. 2003 . Auditor conservatism and reported earnings . Accounting and Business Research , 33 ( 1 ) : 19 – 32 .
   Google Scholar
• Coppens , L. and Peek , E. 2005 . An analysis of earnings management by European private firms . Journal of International Accounting, Auditing and Taxation , 14 ( 1 ) : 1 – 17 .
   Google Scholar
• Dechow , P. 1994 . Accounting earnings and cash flows as measures of firm performance: the role of accounting accruals . Journal of Accounting and Economics , 18 ( 1 ) : 3 – 42 .
   Web of Science ®Google Scholar
• Dechow , P. , Kothari , S. and Watts , R. 1998 . The relation between earnings and cash flow . Journal of Accounting and Economics , 25 ( 2 ) : 133 – 168 .
   Web of Science ®Google Scholar
• DeFond , M. L. and Jiambalvo , J. 1991 . Incidence and circumstances of accounting errors . The Accounting Review , 66 ( 3 ) : 643 – 655 .
   Web of Science ®Google Scholar
• Dye , R. A. 1988 . Earnings management in an overlapping generations model . Journal of Accounting Research , 26 ( 2 ) : 195 – 235 .
   Web of Science ®Google Scholar
• Eilifsen , A. 1996 . The relationship between accounting and taxation in Norway . European Accounting Review , 5 ( Suppl. ) : 835 – 844 .
   Google Scholar
• Francis , J. and Wang , D. 2008 . The joint effect of investor protection and Big 4 audits on earnings quality around the world . Contemporary Accounting Research , 25 ( 1 ) : 157 – 191 .
   Web of Science ®Google Scholar
• Francis , J. R. , Maydew , E. L. and Sparks , H. C. 1999 . The role of the Big 6 auditors in the credible reporting of accruals . Auditing: A Journal of Practice & Theory , 18 ( 2 ) : 17 – 34 .
   Web of Science ®Google Scholar
• García Lara , J. M. , García Osma , B. and Penalva , F. 2007 . Board of directors' characteristics and conditional accounting conservatism: Spanish evidence . European Accounting Review , 16 ( 4 ) : 727 – 755 .
   Web of Science ®Google Scholar
• Gassen , J. , Fülbier , R. U. and Sellhorn , T. 2006 . International differences in conditional conservatism – the role of unconditional conservatism and income smoothing . European Accounting Review , 15 ( 4 ) : 527 – 564 .
   Web of Science ®Google Scholar
• Gómez-Aguilar , N. and Ruíz-Barbadillo , E. 2003 . Do Spanish firms change auditor to avoid a qualified audit report? . International Journal of Auditing , 7 ( 1 ) : 37 – 53 .
   Google Scholar
• Gore , P. , Pope , P. and Singh , A. 2001 . “ Non-audit services, auditor independence and earnings management ” . Lancaster University . Working Paper
   Google Scholar
• Guay , W. and Verrecchia , R. 2006 . Discussion of an economic framework for conservative accounting and Bushman and Piotroski . Journal of Accounting and Economics , 42 ( 1/2 ) : 149 – 165 . (2006)
   Web of Science ®Google Scholar
• Heckman , J. J. 1979 . Sample selection bias as a specification . Econometrica , 47 ( 1 ) : 153 – 161 .
   Web of Science ®Google Scholar
• Hope , O. K. and Langli , J. C. Auditor independence in privately owned firms . Fourth European Auditing Research Network (EARNet) Symposium . Aarhus.
   Google Scholar
• Hung , M. 2000 . Accounting standards and value relevance of financial statements: an international analysis . Journal of Accounting and Economics , 30 ( 3 ) : 401 – 420 .
   Web of Science ®Google Scholar
• Jeong , S. W. and Rho , J. 2004 . Big Six auditors and audit quality: the Korean evidence . The International Journal of Accounting , 39 ( 2 ) : 175 – 196 .
   Google Scholar
• Kim , B. and Jung , K. 2007 . “ The influence of tax costs on accounting conservatism ” . Korea Advanced Institute of Science and Technology . Working Paper
   Google Scholar
• Kim , J.-B. , Chung , R. and Firth , M. 2003 . Auditor conservatism, asymmetric monitoring and earnings management . Contemporary Accounting Research , 20 ( 2 ) : 323 – 359 .
   Web of Science ®Google Scholar
• La Porta , R. , Lopez-de-Silanes , F. and Shleifer , A. 1998 . Law and finance . The Journal of Political Economy , 106 ( 6 ) : 1113 – 1155 .
   Web of Science ®Google Scholar
• Lys , T. and Watts , R. L. 1994 . Lawsuits against auditors . Journal of Accounting Research , 32 ( Suppl. ) : 65 – 93 .
   Web of Science ®Google Scholar
• Martínez-Jerez , F. A. 2008 . Governance and merger accounting: evidence from stock price reactions to purchase versus pooling . European Accounting Review , 17 ( 1 ) : 5 – 35 .
   Web of Science ®Google Scholar
• Navarro García , J. C. and Martínez Conesa , I. 2004 . Manipulación contable y calidad del auditor. Un estudio empírico de la realidad española [Earnings management and audit quality in Spain: an empirical study] . Revista Española de Financiación y Contabilidad , XXXIII ( 123 ) : 1025 – 1061 . [Spanish Journal of Finance and Accounting]
   Google Scholar
• Peek , E. , Cuijpers , R. and Buijink , W. 2007 . “ Creditors' and shareholders' reporting demands in public versus private firms: evidence from Europe ” . Maastricht University . Working Paper
   Google Scholar
• Pierre , S. and Anderson , K. 1984 . An analysis of the factors associated with lawsuits against public accountants . The Accounting Review , 59 ( 2 ) : 242 – 263 .
   Google Scholar
• Qiang , X. 2007 . The effects of contracting, litigation, regulation, and tax costs on conditional and unconditional conservatism: cross-sectional evidence at the firm level . The Accounting Review , 82 ( 3 ) : 759 – 796 .
   Web of Science ®Google Scholar
• Simunic , D. and Stein , M. 1996 . The impact of litigation risk on audit pricing: a review of the economics and the evidence . Auditing: A Journal of Practice & Theory , 15 ( Suppl. ) : 119 – 134 .
   Google Scholar
• Skinner , D. and Sloan , R. 2002 . Earnings surprises, growth expectations, and stock returns or don't let an earnings torpedo sink your portfolio . Review of Accounting Studies , 7 ( 2/3 ) : 289 – 312 .
   Google Scholar
• Teoh , S. , Welch , I. and Wong , T. 1998 . Earnings management and the long-run market performance of initial public offerings . Journal of Finance , 53 ( 6 ) : 1935 – 1974 .
   Web of Science ®Google Scholar
• Van Tendeloo , B. and Vanstraelen , A. 2008 . Earnings management and audit quality in Europe: evidence from the private client segment market . European Accounting Review , 17 ( 3 ) : 447 – 469 .
   Web of Science ®Google Scholar
• Vander Bauwhede , H. 2007 . “ The impact of conservatism on the cost of debt: conditional versus unconditional conservatism ” . Working Paper. Katholieke Universitei, Leuven
   Google Scholar
• Vander Bauwhede , H. and Willekens , M. 2004 . Evidence on (the lack of) audit-quality differentiation in the private client segment of the Belgian audit market . European Accounting Review , 13 ( 3 ) : 501 – 522 .
   Google Scholar
• Watts , R. 2003 . Conservatism in accounting. Part I: explanations and implications . Accounting Horizons , 17 ( 3 ) : 207 – 221 .
   Google Scholar