Estimating the value added by Big 8/6/5 auditors using earnings and cash response coefficients

Stephenson-Clarke, Peta and Hodgson, Allan (2005) Estimating the value added by Big 8/6/5 auditors using earnings and cash response coefficients. Accounting Research Journal, 18 1: 21-33. doi:10.1108/10309610580000672


Author Stephenson-Clarke, Peta
Hodgson, Allan
Title Estimating the value added by Big 8/6/5 auditors using earnings and cash response coefficients
Journal name Accounting Research Journal   Check publisher's open access policy
ISSN 1030-9616
Publication date 2005-01-01
Sub-type Article (original research)
DOI 10.1108/10309610580000672
Volume 18
Issue 1
Start page 21
End page 33
Total pages 13
Place of publication Bingley, W. Yorks., United Kingdom
Publisher Emerald Group Publishing
Language eng
Abstract This paper estimates the value added by Big 8/6/5 auditors after controlling for the permanent and non-permanent impact of earnings and cash flows using linear and nonlinear (arctan) regression models. The linear model shows significant value added for industrial firms that utilise Big 8/6/5 auditors; while an arctan model shows that large auditors value-add by attesting to the permanence of earnings for large firms. We demonstrate that refinements to the audit research can be made by using response coefficients to filter out the different timing components inherent in earnings and cash flows.
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status Unknown

Document type: Journal Article
Sub-type: Article (original research)
Collection: UQ Business School Publications
 
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Created: Wed, 02 Mar 2011, 20:02:20 EST by Karen Morgan on behalf of UQ Business School