Abstract

The audit fee is an important indicator of the development of the audit industry, and a disproportionately low audit fee may have a negative impact on the enhancement of the accounting profession and attraction of talent. This study finds that, after controlling for company and country-specific variables, audit fees in Taiwan are lower than in most other neighboring Asian markets in the sample. Further analysis reveals that this is mainly due to the fact that the Big 4 accounting firms in Taiwan...

Abstract

This paper investigates the influence of director interlocks and auditor interlocks with fraudulent firms on financial reporting quality of a non-fraudulent firm. The empirical results find that the financial reporting quality of a fraudulent firm is worse than a non-fraudulent firm and the financial reporting quality of a non-fraudulent firm that interlocks with fraudulent firms is worse than that without such interlocks. When we consider the type of inter-firm interlock, further tests reveal t...

Abstract

This study investigates how audit quality moderates the effect of Securities and Exchange Commission (SEC) reviews on financial reporting and investors’ perceptions of annual report modifications. The SEC ensures public companies’ compliance with disclosure regulations by scrutinizing filings. Companies receiving SEC comment letters (commented firms) are mandated to incorporate essential disclosures in their current and subsequent filings. While existing literature supports the notion that SEC r...

Abstract

Using a sample of firms listed on the Taiwan Stock Exchange and Taipei Exchange from 2005 to 2022, this study investigates whether there is a difference in cost stickiness across various stages of the corporate life cycle and examines the role of business strategy in this relationship. After dividing the observations into growth, mature, and decline stages, the study further differentiates cost expenditures into selling, general and administrative (SG&A) expenses, advertising expenses, and resea...