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March 12, 2012


A Former Student

What a great and sarcastic blog-report, once again...Prof. Peterson :-)!

Regarding empirical research: The problem lies in accessing data. Audit Analytics in the US has data from 2000 (but with a lot of variations), in France the only data set one can get is not sufficient enough and scattered, in Switzerland they (FINMA) only gives data from 2004-2008 etc. etc. etc There are just big obstacles to overcome.

Additionally, how do we assess quality? With misstatements, length of report, malpractices and settlements or even prices? Again, here the data doesn't give us coherent and comparable numbers across the countries. So empirical results would be difficult to justify...are not thorough.

More so, if we just compare single countries, we won't get the right answers. For example a study in Taiwan shows that experience is needed (approx. 5years) and then afterwards quality decreases. We should not extrapolate this result.

However, I totally agree with you, but to be fair, this is a task of several months, to get the data manually (Panel Data necessary across countries) and then develop a STATA Regression model on the basis on Two-Stage regression. I would have certainly done something like that already, but the first part, the Data-story, is really not a piece of cake.

A former student...

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