Jing Zhang's research while affiliated with University of Colorado and other places

Publications (19)

Article
While the regulatory push towards principles-based standards in the United States and elsewhere is based on the notion that principles-based standards are more informative to capital market participants relative to rules-based standards, we do not know how principles-based standards impact accounting conservatism for U.S. firms. Using a measure of...
Article
Full-text available
This study examines the voluntary disclosure of earnings forecasts by female CEOs. We find that in the backdrop of increased pressure to perform from investors and other stakeholders, female CEOs tend to issue more earnings forecasts than male CEOs, and those forecasts are more accurate. We also find that while financial analysts generally prefer t...
Article
The last two decades have witnessed a growing trend of traditional onshore banks establishing affiliates and subsidiaries offshore, along with increased globalization and competition in international financial markets. We examine whether subsidiary operations in offshore financial centers (OFCs) facilitate bank risk-taking. We construct an internat...
Article
Prior studies on auditor shopping primarily focused on the motivation to avoid unfavorable audit opinions, such as going concern and modified opinion. In this study, we show that companies that misstate their financial statements engage in auditor shopping to try to conceal the financial misstatements. In other words, their misstatements would have...
Article
The global accounting convergence and the often discussed probable adoption of International Financial Reporting Standards (IFRS) by U.S. regulators is a timely topic. We contribute to the literature by examining a more recent mandatory IFRS adoption by Canada. Canadian GAAP (CGAAP) is often considered a close substitute for U.S. GAAP. One key feat...
Article
Though Section 203 of the Sarbanes-Oxley Act (SOX) calls for the rotation of the audit partner every five years, we do not know whether investors value audit partner rotation. This is an important issue since many in the auditing profession believe that mandatory rotation of the audit partner is unnecessary and may in fact impair audit quality. We...
Article
We examine whether short sellers are interested in, and capable of, identifying firms with an upcoming revelation of internal control material weaknesses (ICMW). We show that short sellers accumulate positions in firms that are about to disclose ICMW under Section 404 of the Sarbanes–Oxley Act for the first time when internal control problems are s...
Article
Using the timeliness of misstatement discovery as a proxy for audit quality, we examine the association between audit firm tenure and audit quality in a setting that alleviates the endogeneity problem endemic to this line of research. We find that longer audit firm tenure leads to less timely discovery and correction of misstatements, which is cons...

Citations

... Currently, the biggest concern of practitioners and the motivation for many researchers spin around the mandatory capitalization of operating leases for lessees by IFRS (2016) accounting standards. The end of the operating lease accounting option by IFRS could be an excellent example of the difference between principle-based and rules-based standards (conservatism) since this option continues to exist in SFAS No.13 (Graham & Lin, 2018;Krishnan & Zhang, 2022). ...
... It can also be inferred that female CEOs are perceived as high achievers, and fear of failure can motivate their decision-making (Hunter et al., 2021). The consequence of female CEO factors affects the economic impact of the associated firms (Chen et al., 2021;Francoeur et al., 2022;Setiawan & Gestanti, 2022;Zhang et al., 2018). For example, women directors economically impact positively on firm donations leading to high performance from the associated firms (Zhang et al., 2018). ...
... They find that audit committee members who are both accounting and industry experts perform better than those with only accounting expertise. Cziffra et al. (2021) find that more active audit committees (measured using meeting frequency) improve financial information quality. ...
Reference: Earnings Quality
... Some research suggests the Big N might not signal quality or even be perceived as quality providers of governmental audits (Samelson, Lowensohn, and Johnson 2006;Cziffra, Singer, and Zhang 2021). One potential explanation for inconsistent results in governmental studies may be variation in the extent of Big N market share in sample populations. ...
... See Ansolabehere and Hersh's (2012) study for more information regarding validating Catalist data. 8. NamSor (https://v2.namsor.com/NamSorAPIv2/index.html) is a machine learning-based package and API service that employs Naïve Bayes algorithms to classify names by gender, country of origin, or ethnicity, and it has been widely used in academic research (see Krishnan et al. (2021) for a list of recent research using NamSor). 9. A full version of Tables 2 and 4, which includes regression coefficient and odds ratio of each variable, can be found in the Online Supplemental Material. ...
... Specifically, it has been argued that poor national auditing standards have partially contributed to the recent financial scandals in many countries worldwide (Haapamäki & Sihvonen, 2019;Monfardini & von Maravic, 2019). Additionally, the need for adopting ISAs has recently increased as a result of the rapid growth of financial markets, as well as the increasing pressure from multinational corporations and foreign investors to adopt good practices that improve the accuracy, comparability and reliability of the disclosed information (Boolaky & Omoteso, 2016;Boolaky & Soobaroyen, 2017;Krishnan & Zhang, 2019). Further, the adoption of ISAs can bring various economic benefits to countries and companies by integrating capital markets internationally and facilitating the work of accountants and auditors, hence reducing auditing costs (Zaidi & Huerta, 2014). ...
... Hereto, Ball et al. (2015) find evidence of a negative association between audit quality and the length of tenure between the lead audit partner and client firm management. This means that close person-to-person relationships between the auditor and client undermine auditor independence and resultant financial information reliability (Krishnan and Zhang, 2019). Conversely, Ball et al. (2015) find that conditional on audit partner rotation, audit quality increases the longer the auditor's tenure because auditor develops expertise. ...
... Cheng et al. (2019) document that short sellers are interested in firms with less comparative accounting information (a proxy for poor reporting quality) but also find that ex-ante short-selling pressure improves future accounting comparability. Singer, Wang, and Zhang (2018) find that short sellers target firms that are about to disclose first-time internal control material weaknesses (ICMWs) under Section 404 of the Sarbanes-Oxley Act, courtesy of their use of mainly private rather than public information. Furthermore, the ability of short sellers to predict ICMWs is more pronounced in firms operating in an environment with high information asymmetry. ...
... Our results also speak to the literature on audit quality, which shows that firm-, office-, and partner-level expertise and characteristics influence audit quality (Francis and Yu 2009;Choi et al. 2010;Francis et al. 2013;Bills et al. 2016;Singer and Zhang 2017;Beck et al. 2018). We build on this foundation by considering a technical characteristic that has the potential to be especially disruptive: the adoption of AI technologies. ...