摘要:

This study reports further evidence as to the determinants of the audit fees paid by quoted companies in the UK. It outlines a framework based on the findings from semi‐structured interviews with partners in four large audit firms and the results of previous research, and tests this framework by means of multivariate analysis using 1987 data for a large sample of quoted UK companies. A model explaining 87 per cent of the variation in audit fees is constructed. The principal explanatory variables are found to be auditee size, return on shareholders equity, the number of subsidiaries, the lag between the year end and the date of the audit report, the size of the auditor, a measure of auditee diversification, the ownership structure of the auditee, and whether the auditor was based in London, with the last three being new variables introduced in this stud

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1993.tb00292.x

出版商:Blackwell Publishing Ltd    

年代:1993

数据来源: WILEY

摘要:

The effect of auditor change announcements on the dispersion of investor expectations is investigated by using two approaches. First, the consensus effect (Holthausen and Verrecchia, 1990) is measured by examining unanticipated trading volume change. We show that auditor change announcements provide information to the market, and that the consensus effect dominates the informedness effect. Second, the reduction in information asymmetry (Glosten and Milgrom, 1985) due to auditor change announcements is demonstrated by a reduction in proportional bid‐ask spread, which is not driven by increased trading volume. Thus, auditor change announcements reduce dispersion of investor beliefs in that they are both information asymmetry‐reducing and consensus‐increasing. Finally, we show that the type of auditor change (Big‐Eight to Non‐Big‐Eight, Non‐Big‐Eight to Big‐Eight, or Within‐Class) has no impact on the dispersion‐reducing effect of auditor

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1993.tb00293.x

出版商:Blackwell Publishing Ltd    

年代:1993

数据来源: WILEY

摘要:

This paper applies present value tests to the UK stock market. Using monthly data from 1965 to 1990 on real equity price and dividend indices, it is found that the restrictions imposed by the present value model on a vector autoregression comprised of the ‘spread’ between prices and dividends and the change in real dividends can be rejected both for the complete sample period and for a shorter sample which omits the early years of dividend control and the run up to and aftermath of the stock market ‘Crash’ of October 1987. These tests are supplemented by informal methods for evaluating the ‘fit’ of the present value model: the observed spread is found to move ‘too much’, so that deviations from the model are persistent a

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1993.tb00294.x

出版商:Blackwell Publishing Ltd    

年代:1993

数据来源: WILEY

摘要:

Statement of Financia1 Accounting Standards No. 87 (SFAS 87)modifies the method of accounting for pensions by requiring companies sponsoring defined benefit pension plans to (1) recognize a balance sheet liability for unfunded pension benefits and (2) disclose their obligation for pension benefits based on expected future compensation levels (the projected benefit obligation). These requirements may affect users' perceptions of a company's financial position, especially if these plans are underfunded. This research examines whether the requirements ofSFAS 87result in increased funding of corporate pension plans to counteract possible adverse perceptions of users about these plans. The results indicate that early adopters (companies adoptingSFAS 87in 1985 and 1986) increased the funding of their defined benefit pension plans in response toSFAS 87; however, later adopters did not do so. These findings provide evidence that companies may alter economic policies when faced with significant changes in financial disclosure requirements. Further analysis suggests that the effect ofSFAS 87on the pension expense recognized by the sample companies provided impetus for early adoption of this pronouncement.

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1993.tb00295.x

出版商:Blackwell Publishing Ltd    

年代:1993

数据来源: WILEY

摘要:

Many explanations have been offered for the negative Monday effect. An obvious conjecture is that the negative return might be due to firms timing the release of information after the market closes on Friday. We test this conjecture on a sample of 233 firms for 1986. Using a firm's board meeting date as a proxy for high information days we find that a firm's Monday return near a board meeting date is more likely to be negative than other Monday returns. Also the remaining days of the week tend to be more positive than similar days further away from the board meeting. Our results appear to explain part of the negative Monday effect.

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1993.tb00296.x

出版商:Blackwell Publishing Ltd    

年代:1993

数据来源: WILEY

摘要:

This paper examines for international capital market segmentation by testing for changes (both inter‐temporally and inter‐beta) in the parameters of the riskreturn pricing relationship caused by the listing of US stocks on the London Stock Exchange (LSE) between 1965 and 1987. It is hypothesized that international listings reduce the negative effects associated with barriers to international investments, help integrate world markets and therefore decrease internationally listed stock's required returns. Significant negative deviations from the Sharpe‐Lintner (SL) pre‐listing pricing relationship during the postlisting period are therefore expected, primarily caused by decreases in the intercept parameter. We find, in support of the hypothesis, significant negative deviations from the predictions of SL for our sample, although they do not appear to have an intertemporal dimension. These deviations are largely associated both with decreases in the value of the SL model's intercept parameter and with low beta firms, and point toward some integration benefits from US listings on

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1993.tb00297.x

出版商:Blackwell Publishing Ltd    

年代:1993

数据来源: WILEY

摘要:

The paper analyzes asset pricing and portfolio choice when domestic investors collectively cannot hold foreign assets beyond a maximum value. We add the constraint that foreign investors cannot hold more than a fraction of the shares of domestic assets. Consistent with Swedish stock market data, both domestic and foreign investors pay premiums for investing in the other country's assets. Some empirical observations are inconsistent with the CAPM framework.

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1993.tb00298.x

出版商:Blackwell Publishing Ltd    

年代:1993

数据来源: WILEY

摘要:

New evidence is presented on the nature of the Monday effect in stock market returns. Using stock returns for the years 1962‐1986, the Monday effect is found to be confined to periods of negative market returns. Monday's returns are no different from other weekday returns in periods of positive returns. In addition, trading volume and the Monday effect are related. Monday's volume is lower than the other weekdays. When returns are compared controlling for trading volume, we find that the Monday effect is confined to negative return periods with above normal volume, which represent only two per cent of the sample perio

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1993.tb00299.x

出版商:Blackwell Publishing Ltd    

年代:1993

数据来源: WILEY

摘要:

We examine dual classes of shares with identical dividends and liquidation treatment, but with different voting rights. We extend previous dud class studies by examining bid‐ask adjusted prices and by examining returns after controlling for bid‐ask spread and market value differences between voting classes. We establish that voting right differences, although related to price differences between superior and restricted voting shares, do not impact on average returns behavior. These findings are consistent with previously forwarded voting premium hypothe

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1993.tb00300.x

出版商:Blackwell Publishing Ltd    

年代:1993

数据来源: WILEY

摘要:

This paper investigates how the firm's investment decision is affected by uncertainties in the tax laws under an asymmetric structure of income taxation. Tax liability is modelled as a call option, and tax uncertainties are modelled as randomness in the exercise price of the call option. The effects on the investment decision are derived by evaluating the comparative statics of the optimal investment level with respect to the volatility of the exercise price. The central result is that the disincentive effects of the tax uncertainties are generally exacerbated under the tax asymmetry.

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1993.tb00301.x

出版商:Blackwell Publishing Ltd    

年代:1993

数据来源: WILEY