This page has only limited features, please log in for full access.

Unclaimed
Ho-Young Lee
Yonsei University, School of Business, 50 Yonsei-ro, Seoul, South Korea

Honors and Awards

The user has no records in this section


Career Timeline

The user has no records in this section.


Short Biography

The user biography is not available.
Following
Followers
Co Authors
The list of users this user is following is empty.
Following: 0 users

Feed

Journal article
Published: 07 July 2021 in Finance Research Letters
Reads 0
Downloads 0

This study examines the association between the social ties among board members and investment efficiency and whether managerial overconfidence aggravates this association. We find that social ties among directors are negatively associated with investment efficiency and managerial overconfidence aggravates this association. These results suggest that social ties between inside and outside directors weaken board independence, which ultimately has a negative impact on optimal investment decision-making. In addition, stakeholders must effectively monitor managers who are overconfident when board members are socially tied.

ACS Style

Yong Joo Kang; Ho-Young Lee; Hyun-Young Park; Ju Hyoung Park. Social ties, managerial overconfidence, and investment efficiency. Finance Research Letters 2021, 102300 .

AMA Style

Yong Joo Kang, Ho-Young Lee, Hyun-Young Park, Ju Hyoung Park. Social ties, managerial overconfidence, and investment efficiency. Finance Research Letters. 2021; ():102300.

Chicago/Turabian Style

Yong Joo Kang; Ho-Young Lee; Hyun-Young Park; Ju Hyoung Park. 2021. "Social ties, managerial overconfidence, and investment efficiency." Finance Research Letters , no. : 102300.

Journal article
Published: 27 December 2019 in Asian Journal of Business and Accounting
Reads 0
Downloads 0
ACS Style

Jung-Wha Suh; Ho-Young Lee; Arnold Edward Kuk; Hyunsoo Ryu Ryu. Effect of the Trusted Taxpayer Designation on Corporate Tax Avoidance Behavior: Evidence from Korea. Asian Journal of Business and Accounting 2019, 12, 121 -146.

AMA Style

Jung-Wha Suh, Ho-Young Lee, Arnold Edward Kuk, Hyunsoo Ryu Ryu. Effect of the Trusted Taxpayer Designation on Corporate Tax Avoidance Behavior: Evidence from Korea. Asian Journal of Business and Accounting. 2019; 12 (2):121-146.

Chicago/Turabian Style

Jung-Wha Suh; Ho-Young Lee; Arnold Edward Kuk; Hyunsoo Ryu Ryu. 2019. "Effect of the Trusted Taxpayer Designation on Corporate Tax Avoidance Behavior: Evidence from Korea." Asian Journal of Business and Accounting 12, no. 2: 121-146.

Original article
Published: 18 September 2019 in Abacus
Reads 0
Downloads 0

This study examines the association between auditors' litigation risk and audit firm attributes. Using professional liability insurance premiums as a proxy for auditors' litigation risk, we present evidence that the risk is lower in audit firms having: (1) separate non‐audit and audit divisions; (2) a higher proportion of partners; and (3) a higher annual growth in number of CPAs employed. Additionally, we find that the risk is higher in audit firms having: (1) operating losses; and (2) high revenue growth. Our results are consistent with the idea that audit firms' financial condition and organizational structure affect their independence/ expertise, and, in turn, their litigation risk. Our results are broadly supportive of the PCAOB's (2015) and US Department of Treasury's (2008) views that investors, audit committees, management, and other regulators could benefit from having access to financial and organizational information about audit firms.

ACS Style

Minjung Kang; Ho‐Young Lee; Vivek Mande; Yong‐Sang Woo. Audit Firm Attributes and Auditor Litigation Risk. Abacus 2019, 55, 639 -675.

AMA Style

Minjung Kang, Ho‐Young Lee, Vivek Mande, Yong‐Sang Woo. Audit Firm Attributes and Auditor Litigation Risk. Abacus. 2019; 55 (4):639-675.

Chicago/Turabian Style

Minjung Kang; Ho‐Young Lee; Vivek Mande; Yong‐Sang Woo. 2019. "Audit Firm Attributes and Auditor Litigation Risk." Abacus 55, no. 4: 639-675.

Journal article
Published: 08 May 2019 in Sustainability
Reads 0
Downloads 0

This study investigates how the presence and power of labor unions are associated with auditor replacement, more specifically, external auditor tenure and the direction of auditor change. External auditor tenure and direction have been of great interest to stakeholders, as they are very likely associated with the financial reporting quality and corporate transparency, crucial factors for sustainable business. We are focusing on the role of the labor union, one of the key stakeholders involved in corporate governance and transparent operations, in external auditor selection processes. During the annual wage bargaining process, labor unions that rely on financial information face information asymmetry because financial statements are provided by the management. Therefore, labor unions have a high demand for independent and capable external auditors. This demand is likely to shorten auditor tenure and/or prompt changes to higher-quality auditors. Using a sample of 4568 firm-years listed in the Korean stock markets for the period of 2005 to 2008, we find evidence that the presence and power of labor unions significantly decrease external auditor tenure. We also find that the direction of auditor changes with the presence and power of labor unions is likely from non-industry specialist auditors to industry specialist auditors. This study contributes to the extant literature by extending the previous research on auditor selection and the governance role of labor unions.

ACS Style

Eun Jung Cho; Ju Ryum Chung; Ho-Young Lee. The Role of Labor Unions in Corporate Transparency: Focusing on the Role of Governance in Auditor Change Process. Sustainability 2019, 11, 2643 .

AMA Style

Eun Jung Cho, Ju Ryum Chung, Ho-Young Lee. The Role of Labor Unions in Corporate Transparency: Focusing on the Role of Governance in Auditor Change Process. Sustainability. 2019; 11 (9):2643.

Chicago/Turabian Style

Eun Jung Cho; Ju Ryum Chung; Ho-Young Lee. 2019. "The Role of Labor Unions in Corporate Transparency: Focusing on the Role of Governance in Auditor Change Process." Sustainability 11, no. 9: 2643.

Journal article
Published: 07 May 2019 in Managerial Auditing Journal
Reads 0
Downloads 0

Purpose Based on 3,775 firm-year observations from 2009 to 2013 using publicly available disclosure data for Korean listed firms, this study examines whether and how firm-level governance characteristics are associated with investment in internal auditing proxied by compensation and the number of statutory internal auditors. Design/methodology/approach The authors investigate the association between governance characteristics and investment in internal auditing proxied by compensation and the number of statutory internal auditors. Findings The authors find that firms with greater ownership of the largest shareholders and with a higher proportion of outside directors invest more in internal auditing. These results indicate that firms with higher incentive and demand for monitoring are more likely to invest more in internal auditing. The authors further find that the positive effect of the largest shareholder ownership (board independence) on investment in internal auditing is attenuated in firms with greater board independence (ownership of the largest shareholders) suggesting that the complementary effect of the two governance mechanisms associated with internal auditing weakens as they function simultaneously. Research limitations/implications The results provide regulators and investors with a clear picture of the governance characteristics of firms associated with investment in internal auditing. The results imply that both the largest shareholders and the outside board of directors play a significant role in resource allocation in internal auditing within a firm. The effect of allocation, however, can be attenuated contingent upon the combined characteristics of governance mechanisms. Originality/value Using large amounts of public archival data, this study adds to the extant literature on firm characteristics associated with investment in internal auditing. This study also contributes to the literature by expanding the scope of research on executive compensation to the locus of statutory internal auditors.

ACS Style

Hyun-Young Park; Ho-Young Lee; Jin Wook Kim. Investment in internal auditing and governance characteristics. Managerial Auditing Journal 2019, 34, 627 -652.

AMA Style

Hyun-Young Park, Ho-Young Lee, Jin Wook Kim. Investment in internal auditing and governance characteristics. Managerial Auditing Journal. 2019; 34 (5):627-652.

Chicago/Turabian Style

Hyun-Young Park; Ho-Young Lee; Jin Wook Kim. 2019. "Investment in internal auditing and governance characteristics." Managerial Auditing Journal 34, no. 5: 627-652.

Journal article
Published: 08 November 2018 in Investment Management and Financial Innovations
Reads 0
Downloads 0

This study examines the effect of foreign directors in the board of directors on the monitoring function by analyzing the association between foreign directors and opportunistic financial reporting. The authors address this question by examining the effect of the foreign directors in the board on firms’ discretionary accruals and book-tax difference. The researchers analyze by using Korean firm data for the years 2001–2014 as Korea is one of the few countries that nepotism is strong within the board, providing the ideal setting to analyze the effect of foreign directors on the monitoring function of the board. The authors find that foreign directors have a positive effect on the monitoring function of the board, as discretionary accruals and book-tax differences of firms with foreign directors are lower than those without foreign directors. Further, the researchers find that the positive effect of foreign directors on the monitoring function is more pronounced if foreign directors are independent directors or expertise in accounting or finance. Overall, the findings support the view that foreign directors in the board increase the board diversity, which increases the independence of the board and so the monitoring function.

ACS Style

Junghwa Suh; Ho-Young Lee; Hansol Lee. The association between foreign directors and opportunistic financial reporting. Investment Management and Financial Innovations 2018, 15, 98 -112.

AMA Style

Junghwa Suh, Ho-Young Lee, Hansol Lee. The association between foreign directors and opportunistic financial reporting. Investment Management and Financial Innovations. 2018; 15 (4):98-112.

Chicago/Turabian Style

Junghwa Suh; Ho-Young Lee; Hansol Lee. 2018. "The association between foreign directors and opportunistic financial reporting." Investment Management and Financial Innovations 15, no. 4: 98-112.

Journal article
Published: 23 October 2018 in Sustainability
Reads 0
Downloads 0

The purpose of this paper is to examine the association between activities related to corporate social responsibility (C81SR) and firm value, and whether social ties between outside and inside directors within the board (social ties) affect this association. We analyzed a sample of non-financial firms with fiscal year-end in December listed in the Korea Stock Exchange market for the period of 2012–2017, measuring the intensity of social ties based on region and school relations using the concept of density from social network theory. Using environment, social, and governance (ESG) scores from the Korea Corporate Governance Service to measure CSR activities, we find that, on average, firms can increase their value through CSR activities in Korea. In addition, in firms with strong social ties, the positive association between CSR activities and firm value is attenuated, indicating that boards with strong social ties are ineffective in monitoring CSR activities. Although the government has made great efforts to improve corporate governance with a focus on independence of outside directors, the results of our analysis indicate that there is room for firms to improve board independence substantively in a society where nepotism is widespread.

ACS Style

Ju Hyoung Park; Hyun-Young Park; Ho-Young Lee. The Effect of Social Ties between Outside and Inside Directors on the Association between Corporate Social Responsibility and Firm Value. Sustainability 2018, 10, 3840 .

AMA Style

Ju Hyoung Park, Hyun-Young Park, Ho-Young Lee. The Effect of Social Ties between Outside and Inside Directors on the Association between Corporate Social Responsibility and Firm Value. Sustainability. 2018; 10 (11):3840.

Chicago/Turabian Style

Ju Hyoung Park; Hyun-Young Park; Ho-Young Lee. 2018. "The Effect of Social Ties between Outside and Inside Directors on the Association between Corporate Social Responsibility and Firm Value." Sustainability 10, no. 11: 3840.

Journal article
Published: 01 July 2018 in Korean Journal of Business Ethics
Reads 0
Downloads 0
ACS Style

Young-Soo Yoon; Ho Young Lee. Effect of Internal Audit Evaluation on Financial and Non-Financial Performance. Korean Journal of Business Ethics 2018, 18, 1 -35.

AMA Style

Young-Soo Yoon, Ho Young Lee. Effect of Internal Audit Evaluation on Financial and Non-Financial Performance. Korean Journal of Business Ethics. 2018; 18 (1):1-35.

Chicago/Turabian Style

Young-Soo Yoon; Ho Young Lee. 2018. "Effect of Internal Audit Evaluation on Financial and Non-Financial Performance." Korean Journal of Business Ethics 18, no. 1: 1-35.

Journal article
Published: 08 January 2018 in Managerial Finance
Reads 0
Downloads 0

Purpose Audit firm bankruptcy can have significant negative impacts on the stock prices of client firms. The purpose of this paper is to identify determinants of audit firm bankruptcy risk as measured by costs of debt. Design/methodology/approach Using audit firm data publicly available in Korea, this study empirically examines whether client portfolio, financial, and organizational characteristics are associated with the weighted average interest rates assumed by auditors. Findings The authors find empirical evidence that audit firms’ client portfolio characteristics, including the incidence (or number) of lawsuits against the auditor, the proportion of audit clients under surveillance, the proportion of initial audit engagements, and the proportion of listed companies of audit clients, are positively associated with the cost of debt. The authors also find several financial and organizational characteristics associated with the cost of debt. Practical implications The findings of this study suggest that client portfolio characteristics as well as financial and organizational characteristics are important determinants of the cost of debt in audit firms, and that these characteristics are different from those of firms in other industries. Identifying the determinants of audit firms’ cost of debt provides insight to regulators, client firms, and capital market participants. Originality/value This study examines the default risk of audit firms that play an important monitoring role in capital markets. By utilizing unique data about audit firms available in Korea, this study is the first study to empirically examine the effect of detailed audit firm characteristics on audit firm’s default risk.

ACS Style

Yong-Sang Woo; Minjung Kang; Ho-Young Lee. The cost of debt and the characteristics of audit firms. Managerial Finance 2018, 44, 27 -45.

AMA Style

Yong-Sang Woo, Minjung Kang, Ho-Young Lee. The cost of debt and the characteristics of audit firms. Managerial Finance. 2018; 44 (1):27-45.

Chicago/Turabian Style

Yong-Sang Woo; Minjung Kang; Ho-Young Lee. 2018. "The cost of debt and the characteristics of audit firms." Managerial Finance 44, no. 1: 27-45.

Journal article
Published: 30 August 2017 in Korean Accounting Journal
Reads 0
Downloads 0
ACS Style

Junghwa Suh; Ho-Young Lee; Hyun Soo Ryu. A Study of Tax Evasion Before and After Trusted Taxpayer Designation. Korean Accounting Journal 2017, 26, 77 -112.

AMA Style

Junghwa Suh, Ho-Young Lee, Hyun Soo Ryu. A Study of Tax Evasion Before and After Trusted Taxpayer Designation. Korean Accounting Journal. 2017; 26 (4):77-112.

Chicago/Turabian Style

Junghwa Suh; Ho-Young Lee; Hyun Soo Ryu. 2017. "A Study of Tax Evasion Before and After Trusted Taxpayer Designation." Korean Accounting Journal 26, no. 4: 77-112.

Original articles
Published: 07 March 2017 in Applied Economics
Reads 0
Downloads 0

We examine whether labour unions influence external auditor selection and audit scope. As a major user group of financial information, labour unions likely demand financial information of high quality and thus high-quality audits. As a union’s request for wage increases is likely strong when a firm is performing well, management facing wage negotiations with the labour union has incentives to manipulate earnings downward and may therefore prefer auditors who allow more discretion. Using union data unique to Korea during 2005–2008, we find that firms with a stronger labour union tend to choose higher-quality auditors (i.e. Big N or industry specialist auditors). We also find that unionization is negatively (positively) associated with positive (negative) abnormal audit fees and audit hours, and the effects are more pronounced when the union is stronger and more active. Given that departures from normal audit fees and audit hours in either direction arguably impair audit quality, this finding is consistent with our prediction of unions’ demand for high-quality audits. Overall, our findings suggest that labour unions play an important role in determining audit quality.

ACS Style

Ju Ryum Chung; Eun Jung Cho; Ho-Young Lee; Myungsoo Son. The impact of labour unions on external auditor selection and audit scope: evidence from the Korean market. Applied Economics 2017, 49, 4833 -4850.

AMA Style

Ju Ryum Chung, Eun Jung Cho, Ho-Young Lee, Myungsoo Son. The impact of labour unions on external auditor selection and audit scope: evidence from the Korean market. Applied Economics. 2017; 49 (48):4833-4850.

Chicago/Turabian Style

Ju Ryum Chung; Eun Jung Cho; Ho-Young Lee; Myungsoo Son. 2017. "The impact of labour unions on external auditor selection and audit scope: evidence from the Korean market." Applied Economics 49, no. 48: 4833-4850.

Journal article
Published: 31 October 2016 in korean management review
Reads 0
Downloads 0

현재까지 국내외에서 다양한 연구들을 통해 경영자가 개인적인 이득을 취할 목적으로 내부자거래를 수행하고 있음이 제시되었다. 선행연구에 따르면 경영자는 보다 큰 차익을 통해 내부자 매수거래가 있기 이전에 이익을 하향조정하며, 반대로 매도거래가 있기 이전에 이익을 상향조정하는 것으로 나타났다. 이러한 경영자의 기회주의적 행위가 견제되고 억제될 수 있는 방안으로 이사회의 경영진에 대한 모니터링 역할의 효과성이 대두되었다. 일반적으로 사내이사들은 경영자와 지위적, 경제적으로 밀접한 이해관계와 영향권 아래에 놓여있기 때문에 사내이사들의 경영자에 대한 효과적인 통제가 어렵고 사내이사와 최고경영자는 이해를 같이하는 경영진의 일원이라 할 수 있다(김성훈•박철순, 2000). 따라서 주주의 이해에 반하는 경영자의 기회주의적인 행위를 억제하기 위해서는 사내이사 및 경영자와 독립적인 사외이사의 역할이 중요하다. 그러나 사내이사와 사외이사의 지연 및 학연에 따른 유대관계는 이사회의 경영진 견제 기능을 약화시킬 수 있다. 이에 본 연구는 이사회의 지연과 학연에 따른 사회적 연결 관계가 경영자의 내부자거래 및 내부자거래를 위한 이익조정행위를 효과적으로 억제하고 있는지를 실증 분석하였다. 2009년부터 2012년까지의 4개 연도 동안 유가증권시장에 상장되어 있는 기업을 대상으로 분석을 수행한 결과는 다음과 같다. 첫째, 사외이사와 사내이사의 사회적 연결 관계(Social tie)와 경영자의 내부자거래는 유의한 양(+)의 관계가 나타났다. 이는 사회적 연결 관계(Social tie)가 높을수록 사내이사와 사외이사의 유대감이 형성되어 이사회의 독립성 및 이사회의 모니터링 기능을 약화시키고 있음을 의미한다. 또한 사내이사와 지연•학연의 연결 관계(tie)가 없는 사외이사 비율이 높을수록 경영자의 내부자거래 행위가 감소하였다. 둘째, 사외이사와 사내이사의 사회적 연결 관계(Social tie)와 내부자매도거래를 위한 경영자의 이익상향조정행위도 또한 유의한 양(+)의 관계가 나타났다. 그러나 내부자매수거래 이전 이익의 하향조정에는 유의한 관계를 발견하지 못하였다. 특히 고등학교 tie가 없는 사외이사만을 실질적인 독립관계의 사외이사라 간주하여 이사회의 모니터링 효과를 검증한 결과 실질적으로 독립성이 높은 사외이사가 선임된 기업일수록 경영자의 기회주의적인 행동이 감소되었다. 이러한 결과는 지연•학연 중 고등학교 연결 관계가 사내이사와 사외이사의 유대감을 더욱 더 결속시키고 있어 이사회의 모니터링기능을 악화시키고 있음을 보여주는 것으로 우리나라 최고경영진의 연령대를 감안할 때, 경쟁적인 입학시험을 거쳐 자신이 선택한 동일한 고등학교 졸업이라는 심리적 연대가 독립성을 상당부분 약화 시킬 수 있음을 제시한다. 이러한 고등학교 tie에서 나타날 수 있는 심리적 연대는, 출신대학 연결 관계에서도 나타 날 수 있지만, 대학과는 달리 고등학교는 상대적으로 규모가 작고, 해당 학교가 위치한 지역의 문화적, 환경적 특성까지도 공유하여 유대감이 더 강하게 작용할 수 있기 때문일 것으로 추정된다. 본 연구는 이사회의 독립성을 사외이사의 비율로 측정한 외관적인 독립성이 경영자의 기회주의적 이익조정행위를 완화하는지를 분석한 국내•외의 선행연구와는 달리, 이사 개인들 간의 지연과 학연에 기초한 관계특성을 반영하여 수집•측정하고, 이러한 관계특성을 반영한 실질적인 이사회의 독립성이 경영자의 사적이익추구행위를 억제할 수 있는지를 살펴보았다는 데 차별적인 의의가 있다. 이를 통해 한국의 특수한 지연과 학연에 근거한 관계 중심적 성향이 경영진의 기회주의적 행태에 대한 이사회의 통제역할을 검증하고, 정책적 시사점을 제공하는데 유용한 정보를 제공하고자 한다.

ACS Style

Ju-Hyoung Park; Ho-Young Lee; Hae-Myung Shin. The Effect of Social Ties between Outside Directors and Inside Directors on Insider Trading and Earnings Management. korean management review 2016, 45, 1697 -1733.

AMA Style

Ju-Hyoung Park, Ho-Young Lee, Hae-Myung Shin. The Effect of Social Ties between Outside Directors and Inside Directors on Insider Trading and Earnings Management. korean management review. 2016; 45 (5):1697-1733.

Chicago/Turabian Style

Ju-Hyoung Park; Ho-Young Lee; Hae-Myung Shin. 2016. "The Effect of Social Ties between Outside Directors and Inside Directors on Insider Trading and Earnings Management." korean management review 45, no. 5: 1697-1733.

Journal article
Published: 06 June 2016 in Managerial Auditing Journal
Reads 0
Downloads 0

Purpose Using 5,055 sample firm-years in Korea between 2009 and 2013, this paper aims to examine the association between the characteristics of the internal audit and the number of external audit hours as a proxy for audit efficiency. Design/methodology/approach This study is motivated by the International Standard on Auditing No. 610: “Using the work of internal auditors”. This auditing standard guides external auditors in using the work of internal auditors to obtain audit evidence and consult internal auditors for direct assistance. The authors expect that external audit efficiency will increase when the work of competent internal auditors is used. Findings The authors find that the number of internal auditors relative to the number of employees is associated with the number of external audit hours. This result suggests that the greater the availability of internal auditors, the greater their contribution will be to the financial statement audit and the more efficient the audit. The authors find evidence that external auditors use the work of internal auditors with accounting and legal expertise to improve audit efficiency. They also find some evidence that the work of internal auditors with greater availability is more effective during initial external audit engagements. Originality/value This study adds to the extant literature on the contributions of internal auditors to external audits by using archival data and by measuring audit effort using a large database of audit hours. In addition, our findings have practical implications for firms and external auditors who are evaluating the role and value of using the work of internal auditors. The authors also believe that the findings will be of interest to regulators or auditing standards boards.

ACS Style

Ho-Young Lee; Hyun-Young Park. Characteristics of the internal audit and external audit hours: evidence from S. Korea. Managerial Auditing Journal 2016, 31, 629 -654.

AMA Style

Ho-Young Lee, Hyun-Young Park. Characteristics of the internal audit and external audit hours: evidence from S. Korea. Managerial Auditing Journal. 2016; 31 (6/7):629-654.

Chicago/Turabian Style

Ho-Young Lee; Hyun-Young Park. 2016. "Characteristics of the internal audit and external audit hours: evidence from S. Korea." Managerial Auditing Journal 31, no. 6/7: 629-654.

Articles
Published: 20 January 2016 in Asia-Pacific Journal of Accounting & Economics
Reads 0
Downloads 0

The Korean government requires listed firms to disclose the total number of employees engaged in the implementation of internal controls (hereafter, IC personnel) and the number of IC personnel in accounting, finance, information technology and systems departments, and other related functional areas. Using data unique to Korea, this study examines the effect of human resource investment in internal control on audit reporting lag (ARL). We employ quantitative and qualitative measures for the IC personnel, and the ARL is measured by the time between the fiscal year-end and the audit report date. We find an insignificant association between the quantitative measure (the number of IC personnel) and ARL. On the other hand, we find that the qualitative measure (the average experience of the IC personnel) reduces the audit time, thereby decreasing the ARL. This result highlights the importance of qualitative aspect in investments in IC personnel, which could be useful for firms that desire to reap the best result from the investment. Further analysis shows that investments in IC personnel at other departments as well as accounting and finance department increase audit efficiency. We confirm the robustness of our results through a series of additional analyses.

ACS Style

Il-Hang Shin; Ho-Young Lee; Hyun-Ah Lee; Myungsoo Son. How does human resource investment in internal control affect audit reporting lag? Asia-Pacific Journal of Accounting & Economics 2016, 24, 1 -21.

AMA Style

Il-Hang Shin, Ho-Young Lee, Hyun-Ah Lee, Myungsoo Son. How does human resource investment in internal control affect audit reporting lag? Asia-Pacific Journal of Accounting & Economics. 2016; 24 (1-2):1-21.

Chicago/Turabian Style

Il-Hang Shin; Ho-Young Lee; Hyun-Ah Lee; Myungsoo Son. 2016. "How does human resource investment in internal control affect audit reporting lag?" Asia-Pacific Journal of Accounting & Economics 24, no. 1-2: 1-21.

Journal article
Published: 01 January 2016 in Corporate Ownership and Control
Reads 0
Downloads 0

Family-owned conglomerates are prevalent in most Asian countries, in which excessive control rights of their majority shareholders infringe independent managements of their affiliated firms. Less than 50% of Korean chaebol conglomerates have transformed to holding company systems to ensure independent management of affiliated firms. Empirical analyses discovered that the cost of debts in the companies which have been transformed to holding company restricting the complicated equity investment among the affiliated firms of chaebol are evaluated independently. Results imply that the negative effect from the propping of internal capital can be reduced through the fundamental change in the corporate governance.

ACS Style

Sang-Ii Kim; Won-Wook Choi; Ho-Young Lee. Does the Transformation to holding company systems in Korean Chaebol improve the valuation independence of affiliated firms’ cost of debt? Corporate Ownership and Control 2016, 13, 447 -457.

AMA Style

Sang-Ii Kim, Won-Wook Choi, Ho-Young Lee. Does the Transformation to holding company systems in Korean Chaebol improve the valuation independence of affiliated firms’ cost of debt? Corporate Ownership and Control. 2016; 13 (4):447-457.

Chicago/Turabian Style

Sang-Ii Kim; Won-Wook Choi; Ho-Young Lee. 2016. "Does the Transformation to holding company systems in Korean Chaebol improve the valuation independence of affiliated firms’ cost of debt?" Corporate Ownership and Control 13, no. 4: 447-457.

Journal article
Published: 03 November 2015 in Asia-Pacific Journal of Accounting & Economics
Reads 0
Downloads 0

Utilizing unique data available only in Korea, we examine the association between investment in human resources and audit quality provided by audit firms. While human resources investment is important in improving audit quality, few studies have examined this association mainly because public data about human resources investment and financial statements of audit firms are unavailable. Using two proxies for audit quality (i.e. discretionary accruals and accounting conservatism), we provide evidence that higher compensation in audit firms improves audit quality. In addition, we find higher audit quality in audit firms with higher education expenses, when audit quality is measured by the level of conservatism of clients’ financial statements. These results support regulators’ stance that quality control through human resources investment in audit firms can effectively improve audit quality and therefore the quality of clients’ financial reporting. However, we find no association between education expenses and the average absolute value of discretionary accruals of audit clients. These results generally suggest that direct investment in human capital (i.e. compensation) is more effective in improving audit quality than indirect investment in human capital (i.e. education expenses).

ACS Style

Minjung Kang; Ho-Young Lee; Myungsoo Son; Michael Stein. The association between human resource investment by audit firms and their audit quality. Asia-Pacific Journal of Accounting & Economics 2015, 24, 249 -271.

AMA Style

Minjung Kang, Ho-Young Lee, Myungsoo Son, Michael Stein. The association between human resource investment by audit firms and their audit quality. Asia-Pacific Journal of Accounting & Economics. 2015; 24 (3):249-271.

Chicago/Turabian Style

Minjung Kang; Ho-Young Lee; Myungsoo Son; Michael Stein. 2015. "The association between human resource investment by audit firms and their audit quality." Asia-Pacific Journal of Accounting & Economics 24, no. 3: 249-271.

Journal article
Published: 01 August 2015 in Korea International Accounting Review
Reads 0
Downloads 0
ACS Style

성환 박; Ho Young Lee; Sun-A Kang. A Survey Analysis on the Internal Control and External Audit of Social Welfare Organizations. Korea International Accounting Review 2015, null, 189 -210.

AMA Style

성환 박, Ho Young Lee, Sun-A Kang. A Survey Analysis on the Internal Control and External Audit of Social Welfare Organizations. Korea International Accounting Review. 2015; null (62):189-210.

Chicago/Turabian Style

성환 박; Ho Young Lee; Sun-A Kang. 2015. "A Survey Analysis on the Internal Control and External Audit of Social Welfare Organizations." Korea International Accounting Review null, no. 62: 189-210.

Journal article
Published: 09 July 2015 in Journal of Applied Business Research (JABR)
Reads 0
Downloads 0

This study examines whether the stock market returns surrounding announcements of mergers and acquisitions (M&A) are higher for acquiring firms audited by industry specialists. External auditors are uniquely positioned to provide assurance on the financial statements of their acquiring clients both before and after an acquisition. Also, an important aspect of due diligence in M&A transactions is the external auditors review of the accounting records, financial statements, internal controls and information systems of the target company. Using a sample of 4,283 M&A announcements between 1988 and 2011 in the United States of America, we report the results from our main regressions, controlling for all the bidder traits and deal characteristics. We examine incremental effect of audit firm specialization on cumulative abnormal returns. We also measure the effect of audit firm industry specialization in a reduced sample of 3,946 acquisitions after removing all non-Big N auditors. We use Heckmans (1979) two-step procedure to ensure that announcement period return to the size of the audit firm is not driven by the determinants related to auditor choice. Consistent with the idea that industry specialists provide higher quality assurance and possibly superior M&A advisory services, we find that the stock market returns are higher when acquiring firms are audited by industry specialists.

ACS Style

Ho-Young Lee; Vivek Mande; Jong Chool Park. Do Industry Specialist Auditors Add Value in Mergers and Acquisitions? Journal of Applied Business Research (JABR) 2015, 31, 1245 .

AMA Style

Ho-Young Lee, Vivek Mande, Jong Chool Park. Do Industry Specialist Auditors Add Value in Mergers and Acquisitions? Journal of Applied Business Research (JABR). 2015; 31 (4):1245.

Chicago/Turabian Style

Ho-Young Lee; Vivek Mande; Jong Chool Park. 2015. "Do Industry Specialist Auditors Add Value in Mergers and Acquisitions?" Journal of Applied Business Research (JABR) 31, no. 4: 1245.

Journal article
Published: 01 May 2015 in Journal of Applied Business Research (JABR)
Reads 0
Downloads 0

In this study, we examine the determinants of enforcement action by the Financial Supervisory Service of Korea from the perspective of audit firms. Enforcement action is an indication of audit failure. Both client- and audit firm-specific factors are involved in its occurrence. Most published studies of enforcement after audit failure focus on client characteristics because details about audit firms from financial statements and information about organizational structure are not publicly available. However, examining the issues surrounding enforcement from the perspective of audit firms may also be valuable in elucidating the potential determinants of audit failure resulting in enforcement action. Utilizing publicly available data from audit firms in South Korea, we identify several audit firm characteristics as determinants of enforcement action. The results of our empirical analysis reveal that the likelihood of audit failure is positively associated with the ratio of accounts receivable to total assets, the ratio of audit fees to total revenue, the ratio of partners to the total number of CPAs, CEO ownership, and age of audit firms. In addition, the likelihood of audit failure is negatively associated with ownership concentration and profitability. These associations are more pronounced in non-affiliated audit firms than affiliated audit firms. Several useful implications for regulators are described for improving audit quality by means of enforcement action.

ACS Style

Min-Jung Kang; Ho-Young Lee; Yong-Sang Woo. Determinants Of Enforcement Action By The Financial Supervisory Service Of Korea From The Perspective Of Audit Firms. Journal of Applied Business Research (JABR) 2015, 31, 821 .

AMA Style

Min-Jung Kang, Ho-Young Lee, Yong-Sang Woo. Determinants Of Enforcement Action By The Financial Supervisory Service Of Korea From The Perspective Of Audit Firms. Journal of Applied Business Research (JABR). 2015; 31 (3):821.

Chicago/Turabian Style

Min-Jung Kang; Ho-Young Lee; Yong-Sang Woo. 2015. "Determinants Of Enforcement Action By The Financial Supervisory Service Of Korea From The Perspective Of Audit Firms." Journal of Applied Business Research (JABR) 31, no. 3: 821.

Journal article
Published: 17 October 2014 in Applied Economics
Reads 0
Downloads 0
ACS Style

Minjung Kang; Jin Wook Kim; Ho-Young Lee; Myung-Gun Lee. Financial statement comparability and audit efficiency: evidence from South Korea. Applied Economics 2014, 47, 358 -373.

AMA Style

Minjung Kang, Jin Wook Kim, Ho-Young Lee, Myung-Gun Lee. Financial statement comparability and audit efficiency: evidence from South Korea. Applied Economics. 2014; 47 (4):358-373.

Chicago/Turabian Style

Minjung Kang; Jin Wook Kim; Ho-Young Lee; Myung-Gun Lee. 2014. "Financial statement comparability and audit efficiency: evidence from South Korea." Applied Economics 47, no. 4: 358-373.