This study investigates the relationships among industry specialist auditors, outside directors, and financial analysts. Specifically, we examine the effect of analyst coverage on the association between auditor industry specialization and outside directorship. We find that outside directors are less likely to hire industry specialist auditors for firms with high analyst coverage than for firms...

Our study investigates the causal relationship between managerial litigation risk and auditor choice decisions. Exploiting staggered adoption of universal demand (UD) laws at state level in United States, we use a stacked regression approach find lower propensity for affected firms to switch higher-quality auditors after exogenous reduction risk. This result supports entrenchment hypothesis tha...

The objective of this study is to test how the transfer of auditing knowledge, along with other variables, work together to impact the level of professional skepticism in auditors and answer the crucial question of how auditors’ competencies and expertise jointly interact with the knowledge transfer process. The study attempts to test these components in an empirical model, decomposing them and...

A SAFETY, HEALTH, ENVIRONMENTAL and risk management professionals are stakeholders in issues involving safety, health and environmental protection. The insurance industry, in particular, is a major participant in the modern safety movement. As such, it exerts substantial influence on SH&E protection and regulatory compliance in various industrial, nonindustrial and commercial areas (including b...

I analyze banks’ incentives to acquire expertise in judging the credit-worthiness of borrowers in an industry with uncertain business conditions. The optimal industrial organization of bank lending features several banks with industry expertise, as well as a competitive fringe of banks without such expertise. The analysis provides a foundation for analyzing the relative merits of focus vs. dive...

This study extends agency theory by explaining the client's understanding of audit quality. contributes to literature examining effect wedge control-ownership on industry specialist auditors that have not been researched in Turkey. The interests minority and controlling shareholders are completely compatible. research analysis method used a logistic regression model, finding firms practice larg...