Audit quality, auditor compensation and initial public offering underpricing
Data(s) |
01/09/2008
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Resumo |
We jointly study the impact of audit quality on auditor compensation and initial public offering (IPO) underpricing using a sample of Australian firms going public over the period 1996–2003. We find that quality (Big Four) audit firms earn significantly higher fees than non-Big Four auditors, and audit quality is positively associated with IPO underpricing. The positive relation between audit quality and underpricing is more pronounced for small issues, IPOs underwritten by non-prestigious underwriters, and those that are not backed by venture capitalists. Taken together, our results suggest that quality auditors serve as a signalling device that enhances post-issue market value of equity.<br /> |
Identificador | |
Idioma(s) |
eng |
Publicador |
Wiley-Blackwell Publishing Asia |
Relação |
http://dro.deakin.edu.au/eserv/DU:30017217/zhang-auditqualityauditor-2008.pdf http://dx.doi.org/10.1111/j.1467-629x.2008.00275.x https://symplectic.its.deakin.edu.au/viewobject.html?cid=1&id=43330 |
Direitos |
2008, The Authors |
Palavras-Chave | #auditor quality #auditor compensation #initial public offering underpricing |
Tipo |
Journal Article |