Publication Type
Journal Article
Version
acceptedVersion
Publication Date
5-2005
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 the United States, 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.
Keywords
Audit quality, analysts forecasts accuracy, legal environment, diclosure, international
Discipline
Accounting | Business Law, Public Responsibility, and Ethics | Corporate Finance
Research Areas
Corporate Governance, Auditing and Risk Management
Publication
Asia-Pacific Journal of Accounting and Economics
Volume
12
Issue
1
First Page
37
Last Page
58
ISSN
1608-1625
Identifier
10.1080/16081625.2005.10510647
Publisher
Taylor and Francis
Citation
CHOI, Jong-Hag; KANG, Tony; KWON, Young Koan; and ZANG, Yoonseok.
Audit Quality, Legal and Disclosure Environments, and Analysts' Forecast Accuracy: Some International Evidence. (2005). Asia-Pacific Journal of Accounting and Economics. 12, (1), 37-58.
Available at: https://ink.library.smu.edu.sg/soa_research/124
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1080/16081625.2005.10510647
Included in
Accounting Commons, Business Law, Public Responsibility, and Ethics Commons, Corporate Finance Commons