2016 Fiscal Year Annual Research Report
| Project/Area Number |
16J01119
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| Research Institution | Nagoya University |
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Principal Investigator |
顧 俊堅 名古屋大学, 経済学研究科, 特別研究員(DC2)
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| Project Period (FY) |
2016-04-22 – 2018-03-31
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| Keywords | FDI / audit fees / earnings quality / litigation environment |
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| Outline of Annual Research Achievements |
We test several hypotheses with different regression models. Firstly, we find that firms with lower ad, quick ratio, higher capital ratio, R&D, interest, assets, and ROA, have a higher tendency to FDI. Secondly, we find that firms investing in a relatively high number of common-law countries exhibit relatively high audit fees. Thirdly, we also find that firms under greater influence of common law countries have higher level of earnings quality.
These results provide suggestions to firms, what kind of countries they may invest, whether it will improve earnings quality or not. These also provide suggestions to auditors and law makers, what auditors should concern when they make decision on audit fees. How law makers can improve the firms’ performance by changing the litigation environment.
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| Current Status of Research Progress |
Current Status of Research Progress
2: Research has progressed on the whole more than it was originally planned.
Reason
There are mainly three research questions of the research proposal. Q1: What kind of local Japanese firms have tendency to expand the global markets by overseas direct investing? Q2: When auditors make decision on the audit fees, how they consider the firms’ earnings qualities, and the litigation environments where the firms belong to? Q3: Whether the litigation environments, which consist of different law makers, have different impact on the firms’ earnings quality?
During the first year, three of working papers have made, and one paper have been published on the international Journal (JDA). The three research questions (Q1, Q2, and Q3) could been answered partially based on the results of those working papers and published paper, which all focused on the Japanese firms' FDI.
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| Strategy for Future Research Activity |
Apr 2017: Begin to learn about the submission process of target journal. May 2017: a) Revise the paper for the 2017 Annual Meeting of AAA, and JAA; b) Register the 2017 Annual Convention of JAA. Jun 2017: Register for the 2017 Annual Meeting of AAA; Jul 2017: Improve the content of the research and prepare for the 2017 Annual Meeting of AAA. Aug 2017: a) Attend the 2017 Annual Meeting of AAA. b) Improving on each part of the paper. c) Prepare for the 2017 Annual Convention of JAA. Sep 2017: a) Attend the 2017 Annual Convention of JAA; b) Improve on each part of the paper. Oct 2017: Find conference information about the JIAR. Nov 2017 - Dec 2017: Against the style of the JIAR revise the paper. Jan 2018-Feb 2018: Submission for the JIAR. Mar 2018: Wait for the result about submission.
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