Does Disclosure of Conflict of Interest Increase or Decrease Bias?

• Main Authors: Jamal, Karim, Marshall, Erin, Tan, Hun-Tong
• Other Authors: Nanyang Business School
• Format: Article
• Language: English
• Published: 2016
• Subjects: conflict of interest; disclosure; bias; auditor independence; valuation; client advocacy; nature of conflict
• Online Access: https://hdl.handle.net/10356/82776; http://hdl.handle.net/10220/40323
• Institution: Nanyang Technological University

Corporate governance reforms and the threat-safeguard approach to auditor independence regulations are motivated by the assumption that disclosure by an agent (e.g., auditor) of a potential conflict of interest reduces bias in professional judgment. In this study, we conduct an experiment using expe...