@article{40acec4867f24e76971b267909f29023,
title = "Why do companies purchase timely quarterly reviews?",
abstract = "The SEC encourages companies to have their quarterly financial information reviewed by an independent accountant prior to filing Forms 10-Q (i.e., timely review). Many companies, however, choose to have their quarterly data reviewed only at year-end. Companies contracting for timely reviews are hypothesized to be seeking a higher level of monitoring because of higher internal and external agency costs. Empirical analyses support this hypothesis. The likelihood that a company purchases timely reviews is significantly associated with several proxies for internal and external agency costs.",
keywords = "Agency costs, Auditor, Contracting, Monitoring, Quarterly financial data",
author = "Mike Ettredge and Dan Simon and David Smith and Mary Stone",
note = "Funding Information: The financial support of the College of Commerce and Business Administration of the University of Albama, of Ernst and Young, and of an Arthur Andersen Summer Faculty Fellowship are gratefully acknowledged. Helpful suggestions were provided by Ross Watts (the editor) and John Eichenseher (the referee). We also thank James Barth, Hamid Beladi, Paul Copley, Bob Dean, Ken Gaver, Al Johnson, Kurt Pany, Lew Silver, Wanda Wallace, Ray Whittington, Earl Wilson, and participants at workshops at the University of Albama, the University of Arkansas, Florida State University, the University of Tennessee, VPI, and Washington State University. Paul Copley, Mary Doucet, and Ken Gaver provided us with a copy of their statistical software to conduct one portion of this study. We are grateful for their help.",
year = "1994",
month = sep,
doi = "10.1016/0165-4101(94)00364-5",
language = "English",
volume = "18",
pages = "131--155",
journal = "Journal of Accounting and Economics",
issn = "0165-4101",
number = "2",
}