Controlling for Selection Bias: The Role of Firm Size in Gains from Acquisitions

2015 ◽  
Author(s):  
Josh Austin ◽  
Jeremiah Harris
Keyword(s):  
2020 ◽  
Vol 19 (3) ◽  
pp. 3-8
Author(s):  
Tracy Ti Gu ◽  
Dan A. Simunic ◽  
Michael T. Stein ◽  
Minlei Ye ◽  
Ping Zhang

ABSTRACT The market for audit services has been the subject of extensive academic research since the 1970s. The prevailing view is that audit markets are characterized by tiers of suppliers (Big 4 versus non-Big 4, and industry specialists versus non-specialists) where the upper tier suppliers produce and sell a systematically higher level of assurance, while competition among suppliers within tiers is essentially perfect and a uniform price prevails within the submarkets. We discuss three papers that challenge this orthodoxy. These papers argue and find that the price of an audit is essentially unique to each (auditor, client) pair and that this price depends on both audit firm size and client size. Furthermore, audit firm size is linked with the firm's capital investments, which enhance auditor efficiency and market power. We conclude that audit markets are atomistic and that local market power is an important determinant of audit prices and audit fees.


2017 ◽  
Vol 42 (4) ◽  
Author(s):  
Jean-Francois Daoust ◽  
Katherine V.R. Sullivan

Background  This article aims to revisit the role of digital media in acquiring campaign-specific information.Analysis  We use datasets from the Making Electoral Democracy Work project that include campaign-specific questions to analyze six regions in three democracies (Canada, Spain, and France).Conclusion and implications  Results demonstrate that voters have a moderate level of campaign-specific knowledge and that traditional media are, at first glance, more useful to acquire political information. Nevertheless, when in interaction with partisanship, traditional media display a surprisingly greater selection bias effect and appear less useful to acquire information. We thus argue that digital media are in fact not more vulnerable to potential echo chambers that would lead to a homogenous information environment.Contexte  Cet article cherche revoir le rôle numériques des medias dans l’acquisition d’information de campagne.Analyse  Nous utilisons les données du projet Making Electoral Democracy Work qui inclut des question d’information politique spécifiques de campagnes électorales pour analyser six regions dans trois démocraties (Canada, Espagne et France).Conclusion et implications  Les résultats démontrent que les électeurs ont un niveau modéré d’information politique de campagnes électorales et que les medias traditionnels sont, à première vue, plus utiles pour en faire l’acquisition. Néanmoins, en interaction avec les individus partisans, ces médias traditionnels sont l’objet d’un biais de sélection plus important et apparaissent donc moins utiles. Nous soutenons donc que les médias numériques ne sont pas plus vulnérable aux de chambre d’écho qui mènerait à un environnement d’information homogène.


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