Friday, January 23, 12:00 noon
Tokioka Room (Moore Hall 319)
“Business Group Importance and Audit Quality: Evidence from Chinaâ€
ZHOU Jian, School of Accountancy, UHM
This paper investigates the relationship between client importance at the business group level (business group importance) and audit quality. Business group importance is calculated as the sum of audit fees for a specific auditor from companies in a business group divided by the total revenues of the auditor. We find that business group importance is positively related to performance matched discretionary accruals. We also find that business group importance does not affect audit quality of large audit firms, while it affects audit quality of small audit firms. Furthermore, business group importance affects audit quality of non-industry specialists, while it does not affect audit quality of industry specialists. For the heterogeneity of business groups, we find that business group importance is related to audit quality only when member companies in the same business group are in different industries. In sum, we find that the more important the business group to an auditor, the lower the audit quality.
Jian Zhou is a professor of Accounting at UHM, where he holds the Lloyd Fujie/Deloitte Foundation Distinguished Professorship. His current research focuses on auditing related issues such as internal control and audit committee. He has published in many journals, such as Contemporary Accounting Research, Journal of Accounting, Auditing and Finance, Journal of Accounting and Public Policy, Auditing: A Journal of Practice and Theory and Accounting Horizons. His research has been featured in the Wall Street Journal and SmartMoney, and has been referenced in leading textbooks, such as Financial Accounting Theory; and has been cited by a SEC study and in a joint letter to the U.S. Congress from the Center for Audit Quality, the Council for Institutional Investors, and CFA Institute. Zhou has won many research grants, such as the PricewaterhouseCoopers INQuires Grant (2007, 2008, 2011). Zhou has presented papers at AAA FARS mid-year meeting, ISAR Symposium, Conference on Financial Economics and Accounting, and CRSP Forum at University of Chicago. Zhou currently sits on the Editorial Board of Auditing: A Journal of Practice and Theory, and received the journal’s 2014 Outstanding Service Award.
Event Sponsor
Center for Chinese Studies and Confucius Institute at UHM, Mānoa Campus
More Information
(808) 956-8891, china@hawaii.edu
Friday, January 23 |
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| 9:00am |
Sociology Final Oral Mānoa Campus, Saunders 515
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| 9:30am |
Supermarket Flower Design Mānoa Campus, Lyon Arboretum, 3860 Manoa Rd.
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| 10:00am |
UH Common Scholarship Application "Hands On" workshop Honolulu Campus, Computer Lab, Bldg 2, room 401
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| 10:30am |
New Student Orientation Information Session Mānoa Campus, Campus Center, Room 308
|
| 12:00pm |
Summer 2015 in Hainan, China Info Meeting Mānoa Campus, Moore 319
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| 12:00pm |
College of Education Senate Meeting Mānoa Campus, Lab School Portable 4B
|
| 12:00pm |
Chinese Studies public lecture Mānoa Campus, Tokioka Room (Moore Hall 319)
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| 1:00pm |
Summer 2015 in Seville, Spain Info Meeting Mānoa Campus, Moore 319
|
| 2:30pm |
Colloquium-Why Hawaii? The Role of the US in the Pacific Region Mānoa Campus, Saunders 624
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| 3:00pm |
Terroir is not just for wine: environment and genotype influence vegetables Mānoa Campus, St. John Building 106
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| 3:00pm |
German Club - Stammtisch Mānoa Campus, Manoa Gardens
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| 9:00pm |
Welcome Back Bash Mānoa Campus, Campus Center Courtyard
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