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Discussion of “are related party transactions red flags?”

Jorgensen, Bjorn N. and Morley, Julia (2017) Discussion of “are related party transactions red flags?”. Contemporary Accounting Research, 34 (2). pp. 929-939. ISSN 0823-9150

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Identification Number: 10.1111/1911-3846.12304

Abstract

Kohlbeck and Mayhew (2017) create a new data set featuring two types of related party transactions. They use empirical-archival methods to investigate the effect of such transactions on the likelihood of restatements and on audit fees. Their findings suggest that related party transactions related to directors, officers and major shareholders are associated with poor “tone at the top” and that this leads management to negotiate for lower-quality audits to minimize monitoring costs. To offer avenues for future research, we focus our discussion on three aspects of their paper related to causality, definitions of variables, and generalizability to non-U.S. jurisdictions.

Item Type: Article
Official URL: http://onlinelibrary.wiley.com/journal/10.1111/(IS...
Additional Information: © 2017 The Canadian Academic Accounting Association
Divisions: Accounting
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
Sets: Departments > Accounting
Date Deposited: 09 Jun 2017 15:48
Last Modified: 20 Jan 2020 06:31
URI: http://eprints.lse.ac.uk/id/eprint/80801

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