Audit quality, auditor compensation and initial public offering underpricing

作者：Chang, Xin^*; Gygax, Andre F; Oon, Elaine; Zhang, Hong Feng

来源：Accounting and Finance, 2008, 48(3): 391-416.

DOI：10.1111/j.1467-629x.2008.00275.x

• auditor quality
• auditor compensation
• initial public offering underpricing

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.

• 出版日期2008-9
• 单位南阳理工学院; 迪肯大学