Firm Investment Efficiency and Auditor Perception of Dividend Initiation

• Published in: Quarterly journal of finance and accounting Vol. 56; no. 3/4; pp. 67 - 102
• Main Authors: ALSHARAIRI, MALEK, SMITH, DEBORAH DRUMMOND, GLAMBOSKY, MINA, GLEASON, KIMBERLEY
• Format: Journal Article
• Language: English
• Published: Creighton University 22.06.2018
• Subjects: Analysis; Auditing; Auditors; Dividends; Economic aspects; Legal fees; United States; China

This paper examines how auditors assign fees to dividend initiations conditional upon the investment opportunities available to the firm. We examine whether auditors perceive a positive signal arising either from managerial confidence in sustainable future cash flow or from a reduction of risk assoc...