Papers by Mohinder Parkash
SYNOPSIS AND INTRODUCTION: The purpose of this research is to test the effects of agency incentiv... more SYNOPSIS AND INTRODUCTION: The purpose of this research is to test the effects of agency incentives and knowledge spillovers in joint engagements for audit and nonaudit services. External parties and regulators have associated joint nonaudit purchases with beliefs about impaired auditor independence. Since reductions in perceived independence correspondingly reduce audit credibility, agency theory suggests that auditees have an incentive to limit nonaudit purchases because of the agency costs imposed when an audit's monitoring value is diminished. The frequency of nonaudit services is expected to reflect knowledge spillovers from joint engagements and the level of economic bonding between the auditor and the auditee. Hence, two categories of services are examined, recurring and nonrecurring. Agency incentives are expected to significantly influence the auditee's decision to purchase recurring nonaudit services since the auditor's revenue from a recurring service can be p...
Auditor independence in fact as well as in appearance has been one of the concerns of the Securit... more Auditor independence in fact as well as in appearance has been one of the concerns of the Securities and Exchange Commission. The debate on perceived audit quality is concentrated on short reporting periods. In this paper we study the issue of auditor independence by analyzing how investors and financial analysts perceive audit quality in the presence of auditor provided nonaudit services under different reporting regimes. We analyze the issue by focusing on three distinct disclosure periods. The first period of our analysis covers the relatively noncontroversial accounting disclosures made between 1978 and 1980. The second period of our analysis includes accounting scandals and perceived audit failures over February 2001 and July 2002. Our third period of analysis includes restrictions on provisions of certain nonaudit services and other audit related radical reforms with the enactment of the Sarbanes-Oxley Act in July 2002.
Global Review of Accounting and Finance
Global Review of Accounting and Finance
Substantial growth in consulting services provided by auditors in 1990's has been highlighted as ... more Substantial growth in consulting services provided by auditors in 1990's has been highlighted as a threat to auditor independence, which has been argued to be the cause of changes in investors' perception of auditor independence. Research based on audit and nonaudit fees disclosed in 2000's provide consistent results. This study proposes that the perceived auditor independence decreased with increase in auditor provided nonaudit services even before recent controversial environmental changes. Based on nonaudit fees from 1978-80, the evidence indicates that smaller earnings response coefficients are associated with higher auditor provided nonaudit services. These results suggest impairment of auditor independence by the provisions of nonaudit services irrespective of the time period.
The Journal of Investing, 2009
This research shows stock prices to be a function of long-term earnings forecasts, as is consiste... more This research shows stock prices to be a function of long-term earnings forecasts, as is consistent with financial theory. Stock prices reflect not only the average of the IBES long-term earnings predictions but also some superior forecasting power beyond that aggregated average prediction.
The International Journal of Accounting, 2008
The Multi-jurisdiction Disclosure System (MJDS), a treaty between Canada and the United States (U... more The Multi-jurisdiction Disclosure System (MJDS), a treaty between Canada and the United States (U.S.), was intended to facilitate the cross-listing of a firm's securities in the neighboring country. Under this system, eligible Canadian companies are allowed to use home-country documents to meet U.S. disclosure requirements and these documents are generally not reviewed by the Securities and Exchange Commission (SEC). We posit that the single-reporting requirement and lower SEC scrutiny may result in lower audit fees for MJDS firms. Based on audit-fee disclosures mandated by the SEC rule-making authority granted by the Sarbanes-Oxley Act of 2002, we find a negative association between audit fees paid by U.S. cross-listed Canadian companies and their use of the MJDS. This result suggests that the lower audit fees provide an economic incentive to use the MJDS. Thus, our study provides evidence that the implementation of the MJDS may help facilitate crossborder listings by reducing audit costs. Additionally, this study confirms, for Canadian firms, some of the audit-fee determinants reported in earlier studies.
AUDITING: A Journal of Practice & Theory, 2009
International Journal of Business Innovation and Research, 2011
Thesis (Ph. D. - Business Administration)--University of Arizona, 1987. Bibliography: leaves 101-... more Thesis (Ph. D. - Business Administration)--University of Arizona, 1987. Bibliography: leaves 101-105. Microfiche. s
Journal of Business Finance & Accounting, 1995
Auditor independence in fact as well as in appearance has been one of the concerns of the Securit... more Auditor independence in fact as well as in appearance has been one of the concerns of the Securities and Exchange Commission. The debate on perceived audit quality is concentrated on short reporting periods. In this paper we study the issue of auditor independence by analyzing how investors and financial analysts perceive audit quality in the presence of auditor provided nonaudit services under different reporting regimes. We analyze the issue by focusing on three distinct disclosure periods. The first period of our analysis covers the relatively noncontroversial accounting disclosures made between 1978 and 1980. The second period of our analysis includes accounting scandals and perceived audit failures over February 2001 and July 2002. Our third period of analysis includes restrictions on provisions of certain nonaudit services and other audit related radical reforms with the enactment of the Sarbanes-Oxley Act in July 2002.
Journal of Environmental Science and Health, Part A, 2004
Presence and survival of cultivable bacteria in drinking water can act as a vehicle to disseminat... more Presence and survival of cultivable bacteria in drinking water can act as a vehicle to disseminate virulence genes (adherence, enterotoxigenic and antibiotic resistance) to other bacteria. This can result in high morbidity and mortality, and the failure of the treatment of life threatening bacterial infections in humans and animals. In this study, antibiotic resistance (ABR) patterns and transferability of the ABR markers was investigated in Escherichia coli isolates obtained from drinking water and human urine samples. The ABR in E. coli isolates was determined against 15 antibiotics commonly used in human and veterinary medicine. A high frequency of ABR to carbenicillin (56%), tetracycline (53%) and streptomycin (49%) and a low frequency of cefizoxime (5%), amikacin (8%), cefazidine, (5%), chloramphenicol (9%), and kanamycin (18%) was found in the tested E. coli isolates. ABR to kanamycin (0% vs. 35%) and moxalactam (4% vs. 30%) was higher in drinking water isolates whereas resistance to streptomycin (92% vs. 15%), ampicillin (24% vs. 10%), and nalidixic acid (12% vs. 0%) was higher in human urine isolates. A large number of E. coli isolates (93%) exhibited resistance to two or more antibiotics. Two of E. coli isolates from drinking water showed resistances to six (Cb Cm Cx Ip Mx Tc and An Cb Km Mx Sm Tc) and one was resistant to seven antibiotics (Am An Cb Km Mx Sm Tc). A majority of the multiple antibiotic resistant E. coli isolates contained one or more plasmids (size ranged approximately 1.4 Kb to approximately 40 Kb). The ABR traits (Am and Tc) were transferable to other bacteria via conjugation. These data raise an important question about the impact of E. coli containing self-transmissible R-plasmids as a potential reservoir of virulence genes in drinking water.
Journal of Business Research, 1995
We suggest that analysts" uncertainty in predicting earnings is a function off (1) the uncertaint... more We suggest that analysts" uncertainty in predicting earnings is a function off (1) the uncertainty due to production, investment, and financing (PIF) activities, and (2) the amount of information available about the firm. We use a latent variable approach to explore this framework. Observed indicator variables are used to represent the underlying unobserved attributes. The results show that analysts' uncertainty is a positive function of business risk, financial risk, and ownership concentration, and is negatively related to the amount of information, j BUSN RES 1995. 34.161--169 E arnings forecasts are required by the investment community and academic researchers for firm valuation and to measure unexpected earnings. Research that has examined the accuracy and dispersion of analysts' earnings forecasts document that financial analysts' forecasts are generally superior to the predictions generated by time-series models (see . Yet, analysts' forecasts show significant firmand industry-specific dispersion and variation in accuracy (Elton, Gruber, and Gultekin, 1982;. Two comprehensive reviews of the forecast literature by and conclude that very little is known about the determinants of the error and dispersion of analysts' forecasts and how such determinants are related to one another. Schipper (1991) suggests the future research to investigate what information appears to be impounded in analysts' forecasts as it is close to studying analyst decision processes.
Indian Journal of Economics and …, 2010
Abstract: Substantial growth in consulting services provided by auditors in 1990's has been ... more Abstract: Substantial growth in consulting services provided by auditors in 1990's has been highlighted as a threat to auditor independence, which has been argued to be the cause of changes in investors' perception of auditor independence. Research based on audit and ...
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Papers by Mohinder Parkash