Audit quality, auditor compensation and initial public offering underpricing

被引：32
作者：
Chang, Xin [1 ,2 ]
Gygax, Andre F. [1 ]
Oon, Elaine [1 ]
Zhang, Hong Feng [1 ,3 ]
机构：
[1] Univ Melbourne, Fac Econ & Commerce, Dept Finance, Parkville, Vic 3010, Australia
[2] Nanyang Technol Univ, Nanyang Business Sch, Singapore 639798, Singapore
[3] Deakin Univ, Sch Accounting Econ & Finance, Burwood, Vic 3125, Australia
来源：
ACCOUNTING AND FINANCE | 2008年 / 48卷 / 03期
关键词：
auditor quality; auditor compensation; initial public offering underpricing;
D O I：
10.1111/j.1467-629x.2008.00275.x
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
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.
引用
收藏
页码：391 / 416
页数：26
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