ANNOTATED BIBLIOGRAPHY ON FINANCE Example | Topics and Well Written Essays - 500 words

ON FINANCE - Annotated Bibliography Example This article is crucial for individuals pursuing finance and those conducting research in the field of public financing. However, it remains vital to explore other sources of information on the same topic in order to come up with a report backed up with adequate academic sources. DENG, M., MELUMAD, N. & SHIBANO, T. (2012). Auditors’ Liability, Investments, and Capital Markets: A Potential Unintended Consequence of the Sarbanes-Oxley Act. Journal of Accounting Research, 50(5):1179-1216. As the title suggests, the authors explore the effect of increased liability of auditors on rate of audit failure, cost of capital and new investment level. According to the authors, the Sarbanes-Oxley Act, 2000 authorized stringier regulations, which increased the liability of auditors. However, these move increased the confidence of investors as regards the trustworthiness of company financial disclosures. The authors explore market imperfection in terms of information flow. They discuss a scenario where a firm in lemons market intends to raise capital from investors who have no information that the audit they are relying on is imperfect. The authors argue in their conclusion that audit failure is indirectly proportional to increased auditor liability and capital cost for new ventures. This resource is crucial for practicing auditors and accountants. It is also very insightful for professionals pursuing accounting and auditing career and conducting research. However, further resea rch is necessary to justify the claims of the authors. Bar-Yosef, S. & Prencipe, A. (2013).The Impact of Corporate Governance and Earnings Management on Stock Market Liquidity in a Highly Concentrated Ownership Capital Market, Journal of Accounting, Auditing & Finance, 28(3):292–316. In a situation with very high non-institutional ownership, the authors of this article explore how corporate governance machineries and earnings management impact