No abstract

This paper examines whether the identity of the individual audit partners provides informational value to capital market participants beyond the value provided by the identity of the audit firms. Using data from Taiwan, where firms are mandated to disclose the names of the engagement partners, we find a positive association between the partner's quality and the client firm's earnings response coefficient. We also find a positive market reaction when a firm replaces a lower quality partner with a higher quality one. Moreover, we find evidence that firms audited by higher quality partners experience smaller initial public offering (IPO) underpricing and are able to obtain better debt contract terms. Overall, these results suggest that the quality of engagement partners matters to capital market participants.

SUMMARY This study examines whether auditor industry expertise affects firms' client acceptance decisions. Analyzing listed firms in Taiwan, where audit partners' signatures are disclosed on the audit report, we find that partner-level industry specialists, rather than firm-level industry specialists, are less likely to accept clients with higher audit risk. We also provide weak evidence that partner-level industry specialists are less likely to accept clients with higher financial risk. This is consistent with the notion that partner-level industry specialists have an incentive to protect their reputation when making client acceptance decisions. In 2002, following the spirit of the Sarbanes-Oxley Act (SOX), the Securities and Futures Commission in Taiwan adopted a series of new rules to improve audit quality. We examine the effect of SOX on client acceptance decisions and the results indicate that partner-level industry specialists manage risk by accepting clients with less audit risk since litigation risk increased after SOX.

To comprehend the significance of multiple mating in female Callosobruchus maculatus , the material-benefits hypothesis is tested, as well as the potential function and mechanism of additional mating for females. The results show that longevity and lifetime fecundity are significantly higher in doubly-mated females, whereas females subject to an interrupted second copulation (which transfers no ejaculate) show resemblance with singly-mated females in lifetime fecundity and daily fecundity, supporting the material-benefits hypothesis. Female lifetime fecundity increases with ejaculate size in doubly-, but not singly-mated females. Doubly-mated females exhibit an immediate increase in fecundity on the day of remating. Moreover, dissection of ovaries after remating shows that the number of unlaid eggs is lower in doubly-mated females in comparison with singly-mated females, whereas the total number of unlaid and laid eggs shows no significant difference. This suggests that the second mating increases the oviposition rate, but not the egg maturation rate in female C. maculatus . Thus, ejaculate serves as a stimulus for oviposition, at least on the remating day. However, because doubly-mated females lay more eggs in total than singly-mated females, doubly-mated females appear to mature more eggs than the singly-mated counterparts. This is attributed to the 'indirect-driven' hypothesis, which states that the reduction in the number of mature eggs in the oviducts brought about by oviposition stimulates the maturation of oocytes in ovarioles to replenish the number of mature eggs.

Characteristics of resistance of VC6089A, a mungbean, Vigna radiata (L.) Wilczek, bred by using a wild Vigna species, V. sublobata (Roxburgh) Verdcourt (accession no. TC1966), and containing a novel protein, VrD1, were investigated against the cowpea weevil, Callosobruchus maculatus (F.). The seeds of VC6089A showed high level of resistance; > 96% of the bruchid eggs failed to develop into adults, whereas 85% of eggs laid on susceptible cultivar VC1973A became adults. Mortality of surviving bruchids raised for five generations on VC6089A remained higher than 96%; however, female adults maintained high fecundity and thus showed a positive population growth through these generations. We therefore cannot exclude the possibility that the beetles could develop resistance to the resistant mungbean VC6089A. The protein VrD1 purified from seeds of VC6089A showed marked toxicity to C. maculatus when beetles were reared on artificial seeds containing varying levels of VrD1. Thorough inhibition of development was observed when artificial seeds containing 0.2% (wt:wt) VrD1 was provided for insect feeding. Our findings demonstrated the insecticidal activity of VC6089A mungbean seeds and VrD1 protein against C. maculatus. These results may facilitate safer control against bruchid infestation.