讲座：Big 4 Auditors, Litigation Risk, and Disclosure Tone
题 目：Big 4 Auditors, Litigation Risk, and Disclosure Tone
讲座嘉宾：Ling Lei Lisic，Associate Professor, Department of Accounting and Information Systems, Pamplin College of Business, Virginia Polytechnic Institute and State University
地 点：上海交通大学 徐汇校区包图A303室
“We examine the effect of Big 4 auditors on management’s use of optimistic language in audited financial reports. While regulators and practitioners consider the audit of disclosures to be increasingly important, empirical evidence of an auditor’s effect on management’s qualitative disclosure choices is limited. Focusing on the notes to the financial statements, which are the primary disclosure item subject to audit, we find that the tone of the qualitative footnote disclosures is significantly more reflective of bad economic news in the presence of a Big 4 auditor compared with a non-Big 4 auditor. This Big 4 effect on footnote disclosure tone is more pronounced for the subsample of companies with high litigation risks. Our inferences continue to hold for matched samples constructed using coarsened exact matching and entropy balancing to control for inherent differences between clients of Big 4 and non-Big 4 auditors. In contrast, when we examine Management’s Discussion and Analysis, which is not subject to audit, we do not find a Big 4 effect on the sensitivity of its tone to bad news. Our results are consistent with higher litigation exposure motivating Big 4 auditors to constrain management’s use of optimistic language while auditing financial reports. This research provides new evidence to the ongoing regulatory discussions regarding the value of auditing disclosures.”
Ling Lei Lisic joined the Pamplin College of Business at Virginia Tech in the fall of 2017 as an Associate Professor. Before this, she taught at George Mason University for nine years after receiving her Ph.D. from the University of Connecticut in 2008. Her research interests focus on archival tests of economic theories of auditing and financial accounting. Her research has appeared in premier business journals such as The Accounting Review,Journal of Accounting and Economics, Journal of Financial Economics,Production and Operations Management, and Contemporary Accounting Research. She has served as a guest editor for Journal of Business Researchand is currently on the editorial boards of Auditing: A Journal of Practice and Theory and Journal of International Accounting Research. She also serves as an ad hoc reviewer for many leading accounting journals such as The Accounting Review and Contemporary Accounting Research. She was a Co-Chair of the 2017 AAA Auditing Section Midyear Meeting and is the Chair of the Auditing Section Research Committee.
Her teaching interests are in auditing, financial accounting and managerial accounting, at the Ph.D., master, and undergraduate levels. She has taught Auditing and Intermediate Financial Accounting I to master and undergraduate students, Introductory Financial Accounting to master and undergraduate students, and Introductory Managerial Accounting to undergraduate students.