Does media exposure affect financial reporting quality through auditors?

• Main Authors: CAHAN, Steven F., CHEN, Chen, WANG, Rencheng
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2020
• Subjects: media; auditor; business risk; financial reporting quality; Accounting; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/1875; https://ink.library.smu.edu.sg/context/soa_research/article/2902/viewcontent/Media_Exposure_Fin_Rep_Auditors_av.pdf
• Institution: Singapore Management University

We examine whether the media has an indirect corporate governance effect on financial reporting quality (FRQ) that operates through auditors. This occurs because greater media coverage can magnify an auditor's business risk by exposing the auditor to more potential litigation and reputation dam...