Journal of Accounting and Economics Vol. 18 No. 2 1994
Why do companies purchase timely quarterly reviews?
Abstract
The SEC encourages companies to have their quarterly financial information reviewed by an independent accountant prior to filing Forms 10-Q (i.e., timely review). Many companies, however, choose to have their quarterly data reviewed only at year-end. Companies contracting for timely reviews are hypothesized to be seeking a higher level of monitoring because of higher internal and external agency costs. Empirical analyses support this hypothesis. The likelihood that a company purchases timely reviews is significantly associated with several proxies for internal and external agency costs.
- DOI
- 10.1016/0165-4101(94)00364-5
- Volume
- 18
- Issue
- 2
- Pages
- 131-155
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref