Title

Audit Quality, Legal and Disclosure Environments, and Analysts' Forecast Accuracy: Some International Evidence

Publication Type

Conference Paper

Publication Date

8-2005

Abstract

In this study, we investigate the relation between the quality of external audit and earnings predictability of firms situated in different legal and disclosure environments around the world. In a sample of multinational firms cross-listed in U.S., we find that the association between audit quality and forecast accuracy is stronger in weak legal and disclosure environments than in strong legal and disclosure environments. We interpret these results as suggesting that audit service can serve as an alternative device to improve market participants’ information environment in weak legal and disclosure environments.

Discipline

Business Law, Public Responsibility, and Ethics | International Business | Portfolio and Security Analysis

Publication

American Accounting Association Annual Meeting

Volume

12

First Page

37-58

ISSN

1608-1625

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