Third-Party Consequences of Changes in Managerial Fiduciary Duties: The Case of Auditors’ Going Concern Opinions

Published Online:https://doi.org/10.1287/mnsc.2020.3891

References

  • Aier J, Chen L, Pevzner M (2014) Debtholders’ demand for conservatism: Evidence from changes in directors’ fiduciary duties. J. Accounting Res. 52(5):993–1027.CrossrefGoogle Scholar
  • Altman E (1968) Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. J. Finance 23(4):589–609.CrossrefGoogle Scholar
  • Amin K, Krishnan J, Yang J (2014) Going concern opinion and cost of equity. Auditing 33(4):1–39.CrossrefGoogle Scholar
  • Becker B, Strömberg P (2012) Fiduciary duties and equity-debtholder conflicts. Rev. Financial Stud. 25(6):1931–1969.CrossrefGoogle Scholar
  • Bertrand M, Mullainathan S (2003) Enjoying the quiet life? Corporate governance and managerial preferences. J. Polit. Econom. 111:1043–1075.CrossrefGoogle Scholar
  • Bens D, Huang S, Tan L, Wongsunwai W (2020) Contracting and reporting conservatism around a change in fiduciary duties. Contemp. Accounting Res. 37(4):2472–2500.CrossrefGoogle Scholar
  • Bhagat S, Black B (2002) The non-correlation between board independence and long-term firm performance. J. Corporate Law 27:231–273.Google Scholar
  • Carcello J, Neal T (2000) Audit committee composition and auditor reporting. Accounting Rev. 75(October):453–467.CrossrefGoogle Scholar
  • Carcello J, Neal T (2003) Audit committee characteristics and auditor dismissals following “new” going-concern reports. Accounting Rev. 78(January):95–117.CrossrefGoogle Scholar
  • Carson E, Fargher N, Geiger M, Lennox C, Raghunandan K, Willekens M (2013) Audit reporting for going-concern uncertainty: A research synthesis. Auditing 32:353–384.CrossrefGoogle Scholar
  • Chen K, Church B (1992) Default on debt obligations and the issuance of going concern opinions. Auditing 11:3–49.Google Scholar
  • Chen C, Martin X, Wang X (2013) Insider trading, litigation concerns, and auditor going-concern opinions. Accounting Rev. 88(2):365–393.CrossrefGoogle Scholar
  • Chen P, He S, Ma Z, Stice D (2016) The information role of audit opinions in debt contracting. J. Accounting Econom. 61(1):121–144.CrossrefGoogle Scholar
  • DeFond ML (1992) The association between changes in client firm agency costs and auditor switching. Auditing 11:16–31.Google Scholar
  • DeFond M, Zhang J (2014) A review of archival auditing research. J. Accounting Econom. 58(2-3):275–326.CrossrefGoogle Scholar
  • DeFond M, Raghunandan K, Subramanyam K (2002) Do non-audit service fees impair auditor independence? Evidence from going-concern audit opinions. J. Accounting Res. 40(4):1247–1274.CrossrefGoogle Scholar
  • Dionne A (2007) Living on the edge: Fiduciary duties, business judgment and expensive uncertainty in the zone of insolvency. Stanford J. Law Bus. Finance 13:188–224.Google Scholar
  • Dopuch N, Holthausen R, Leftwich R (1987) Predicting audit qualifications with financial and market variables. Accounting Rev. 62(3):431–454.Google Scholar
  • Francis J (2011) A framework for understanding and researching audit quality. Auditing 30(2):125–152.CrossrefGoogle Scholar
  • Francis JR, Wilson ER (1988) Auditor changes: A joint test of theories relating to agency costs and auditor differentiation. Accounting Rev. 63(4):663–682.Google Scholar
  • Ghosh A, Tang C (2015) Assessing financial reporting quality of family firms: The auditors’ perspective. J. Accounting Econom. 60:95–116.CrossrefGoogle Scholar
  • Greene W (2012) Econometric Analysis, 7th ed. (Pearson, New York).Google Scholar
  • Gutiérrez M (2003) An economic analysis of corporate directors’ fiduciary duties. RAND J. Econom. 34(3):516–535.CrossrefGoogle Scholar
  • Hogan C, Jeter D (1999) Industry specialization by auditors. Auditing 18(1):1–17.CrossrefGoogle Scholar
  • Holder-Webb L, Wilkins M (2000) The incremental information content of SAS No. 59 going-concern opinions. J. Accounting Res. 38(1):209–219.CrossrefGoogle Scholar
  • Hopwood W, McKeown J, Mutchler J (1994) Reexamination of auditor vs. model accuracy within the context of the going-concern opinion decision. Contemp. Accounting Res. 11(2):295–310.Google Scholar
  • Hughes RL, McGee M (1995) Fiduciary duties of directors of insolvent corporations. Quittenden AM, ed. Annual Current Developments in Bankruptcy and Reorganization (Practicing Law Institute, New York), 6–10.Google Scholar
  • Lennox C (2000) Do companies successfully engage in opinion shopping? The UK experience. J. Accounting Econom. 29:321–337.CrossrefGoogle Scholar
  • Menon K, Williams D (2010) Investor reaction to going concern audit reports. Accounting Rev. 85(6):2075–2105.CrossrefGoogle Scholar
  • Merton RC (1974) On the pricing of corporate debt: The risk structure of interest rates. J. Finance 29(2):449–470.Google Scholar
  • Mutchler J (1984) Auditors’ perceptions of the going-concern opinion decision. Auditing 3(2):17–30.Google Scholar
  • Mutchler J, Hopwood W, McKeown J (1997) The influence of contrary information and mitigating factors in audit opinion decisions on bankrupt companies. J. Accounting Res. 35:295–310.CrossrefGoogle Scholar
  • Myers L, Schmidt J, Wilkins M (2014) An investigation of recent changes in going concern reporting decisions among Big N and Non-Big N auditors. Rev. Quant. Finance Accounting 43(1):155–172.CrossrefGoogle Scholar
  • Reynolds K, Francis J (2000) Does size matter? The influence of large clients on office-level auditor reporting decisions. J. Accounting Econom. 30(3):375–400.CrossrefGoogle Scholar
  • Stanley J, Zoort F, Taylor G (2009) The association between insider trading surrounding going concern audit opinions and future bankruptcy. Managerial Auditing J. 24(3):290–312.CrossrefGoogle Scholar
  • Vassalou M, Xing Y (2004) Default risk in equity returns. J. Finance 59(2):831–868.CrossrefGoogle Scholar
  • Willenborg M, McKeown J (2000) Going-concern initial public offerings. J. Accounting Econom. 30(3):279–313.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.