| Summary: | 碩士 === 元智大學 === 商學碩士班(會計學程) === 101 === After the Enron and Worldcom scandals, investors have been concerning about the credibility of the financial reports of many companies. Sarbanes-Oxley Act (SOX) was promulgated by the U.S. government in 2002, requiring public firms to ensure that their financial reports are fairly presented with adequate disclosure. Analysts play an important role between investors and firms because analysts can provide useful information to investors. They are also concerned about companies’ corporate transparency and earnings quality, so the analysts’ coverage will increase if the levels of both transparency and earning quality are better. Moreover, prior literature indicated analysts’ coverage was negatively correlated to discretionary accruals quality. Therefore, this study investigates the relationship between analysts’ coverage and audit quality. Our empirical results show that analysts’ coverage is positively associated with Big4 and negatively associated with non-audit fee, which means that analysts serve as external monitors to managers.
|
|---|
