Reputational Implications for Partners after a Major Audit Failure:

PDF打印E-mail

演讲人:中欧国际工商学院 芮萌教授

主持人:会计系主任 夏立军教授

时间:2012927日(周四),上午1000-1130

地点:安泰204

 

内容摘要:

 

We analyze whether audit partners suffered damage to their professional

reputations with the demise of Zhongtianqin (ZTQ), formerly the largest audit firm

in China, after an audit failure enabled a major client, Yinguangxia (YGX), to

fraudulently exaggerate its earnings in a highprofile scandal resembling the

Andersen-Enron events in the U.S. This involves evaluating whether the

reputational damage sustained by partners implicated in the scandal spreads to

other partners in the same audit firm. We isolate whether impaired reputation

impedes partners who were not complicit in the ZTQ-YGX events from attracting

new clients or keeping existing ones. Our evidence implies that the market shares

of these partners fell after ZTQ’s collapse, supporting that guiltless partners’

reputations were tarnished. We also find that these partners are less likely to be

employed by reputable audit firms. The clients of these partners tend to have

lower earnings response coefficients, implying that investors downgrade the

perceived quality of their audits. Moreover, compared to a matched sample, the

former ZTQ partners tend to charge lower audit fees after the firm’s collapse.

Finally, we exploit the unique structure of ZTQ to provide evidence consistent with

the prediction that the former partners from the branch that handled the YGX

audits experienced worse damage to their reputations. In a setting with minimal

auditor discipline stemming from civil litigation, our results lend support to the

intuition that partners’ reputation concerns motivate them to protect audit quality

by closely monitoring other partners in the firm.

 

演讲人简介:

 

Dr. Oliver M. Rui is Professor of Finance and Accounting at CEIBS. He is also professionally designated as Certified Financial Analyst (CFA) and Financial Risk Manager (FRM). Prior to joining CEIBS, Dr. Rui was a Professor that have taught a variety of courses at both the graduate and undergraduate levels at the Chinese University of Hong Kong, Tsinghua University, Shanghai National Institute of Accounting, and Hong Kong Polytechnic University. He was the Program Director of Executive Master of Professional Accountancy which is a joint program between the CUHK and Shanghai National Institute of Accounting. He was a deputy director of Center for Institutions and Governance and a senior research fellow of Institute of Economics and Finance. Prof. Rui is also an award winning teacher. He received the Faculty Teaching Award at the Chinese University of Hong Kong, six years in a row, from 2004 to 2009.

 

He holds a B.S. degree in International Economics (1990) from the Institute of International Relations in Beijing, a Msc. degree in Economics (1993) from Oklahoma State University and an MBA in Statistics (1995) and a Ph.D. in Finance (1997), both from the University of Houston.For much of his academic career, Dr. Rui has focused on finance. He has published over 50 papers in reputable international journals including Journal of Law and Economics, Journal of Financial and Quantitative Analysis, Review of Accounting Studies, Journal of Banking and Finance, Journal of Comparative Economics, Journal of Corporate Finance, Journal of Empirical Finance, Journal of International Money and Finance, Journal of Management Studies, Financial Review, Journal of Financial Research, European Financial Management, Journal of Accounting and Public Policy, Review of Quantitative Finance and Accounting, Journal of Behavioral Decision Making, Journal of Multinational Financial Management, Journal of International Financial Markets, Institutions and Money, Pacific Basin Finance Journal, Journal of Business Research, and Emerging Markets Review. He has also published more than 20 papers in top domestic refereed journals including Economic Research Journal, Journal of Management Sciences, Management World, China Economic Journal, World Economics, Financial Research, China Soft Science Magazine, Journal of Systems Engineering, Systems Engineering-Theory & Practice, Statistical Research. He is also the author of two textbooks: A Collection of Empirical Researches on Chinese Stock Market and Corporate Finance.  His insight and expertise on finance matters have made him a sought-after source for national media such as the Financial Times, Hong Kong Economic Journal, Singtao Daily, Hong Kong Economic Journal and the South China Morning Post.

 

Prof. Rui used to serve as a member of the Panel of Examiners of the Securities Industry Examination of the Hong Kong Stock Exchange, a Member of American Finance Association, Financial Management Association, American Accounting Association, Hong Kong Securities Institute. He is a member of the Advisory Board of the Business Valuation Forum in Hong Kong. He is a visiting financial economist at Shanghai Stock Exchange, research fellow at Hong Kong Institute for Monetary Research and research fellow at Asian Development Bank Institute. He is also a vice president of Hong Kong Financial Engineering Association. He is an adjunct professor at Tsinghua University. He has conducted in-house training for many large corporations such as China Mobile, China Construction Bank, Ericsson, R&F, Air Liquide, Odebrecht and China Gas. He also serves as an independent director for several companies.

评论

显示/隐藏 评论表单

访问统计

截至今日,来访访客达:
mod_vvisit_countermod_vvisit_countermod_vvisit_countermod_vvisit_countermod_vvisit_countermod_vvisit_countermod_vvisit_counter

联系我们

中心地址:上海市法华镇路535号上海交通大学公司财务研究中心10号楼财务研究中心      邮编(200052)
意见建议:financialresearch@126.com  电话(Tel):86-021-52302052     传真(Fax):86-021-52302052