This study investigates whether fee dependence within the audit firms’ offices jeopardises auditor independence. Fee dependence is examined at both the national audit firm level as well as the local office level and in a setting where public disclosure of fees is mandatory. We focus our tests on audit fee dependence and at the same time we control for the effects of non-audit service fee dependence post the 1989 mergers. We operationalise the exercise of independent judgement in auditing by the propensity to issue qualified audit opinions. If fee dependence affects auditors’ independent judgement, then auditors are less likely to qualify the accounts. The study's results show that the level of auditor fee dependence does not affect auditor propensity to issue unqualified audit opinions. The findings remain robust to a number of sensitivity tests including the analyses controlling for the effects of non-audit service fee dependence and other settings in which there is heightened pressure on auditors to confront the effects of fee dependence on exercising independent audit judgement.

This paper analyzes the implications for turnover of costly job-specific training. The presence of such costs in a search model implies that turnover decisions reduce the value of potential trades that are available to other market participants. There is too much turnover because of this external effect, and, therefore, too much retraining. When the investment in job training is endogenous, inefficient turnover again occurs, and the investment in specific skills is inefficiently high. The interactions between skill acquisition and turnover imply that it is essentially impossible for a brokerage institution to achieve efficiency.

Journal Article Monetary Policy in an Inside-Money, Open Economy: Reply Get access Donald J. Mathieson Donald J. Mathieson International Monetary Fund Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 96, Issue 2, May 1981, Pages 357–361, https://doi.org/10.2307/1882396 Published: 01 May 1981

Journal Article Choice of Technology in Low-Wage Countries: A Nonneoclassical Approach Get access Donald J. Lecraw Donald J. Lecraw University of Western Ontario Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 93, Issue 4, November 1979, Pages 631–654, https://doi.org/10.2307/1884473 Published: 01 November 1979

I. Introduction, 551. — II. The autocorrelation of earnings and the variance of human capital, 553. — III. Applications of the variance of present values, 559. — IV. Conclusions, 564.

Journal Article Intergenerational Wealth Transfers and the Educational Decisions of Male Youth: The Mother's Home Time Hypothesis Get access Donald O. Parsons Donald O. Parsons Ohio State University Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 92, Issue 3, August 1978, Pages 521–524, https://doi.org/10.2307/1883158 Published: 01 August 1978

Tobin's banking system model, 83. — Opening the Tobin model, 86. — Foreign sector, 86. — Stationary-state, portfolio balance, 87. — Banking sector, 89. — High-powered money, 89. — Aggregate demand and supply, 90. — Government sector, 91. — Monetary policy, 93. — Fixed exchange rate: increase in required reserve ratio, 94. — Floating exchange rate, 97. — Conclusions, 99. — Appendix I: notation, 100. — Appendix II, 100.

I. Introduction, 490. — II. A brief description of the system, 491. — III. Static welfare losses from foreign exchange pricing, 491. — IV. Revenue gains and losses, 495. — V. Other costs and offsets, 498. — Appendix A: general method: converting loss estimates to linear estimates around the regression means, 499. — Appendix B: methodology of welfare loss calculations, 500.