Audit Office Reputation Shocks from Gains and Losses of Major Industry Clients

作者：Francis, Jere R^*; Mehta, Mihir N; Zhao, Wanli

来源：Contemporary Accounting Research, 2017, 34(4): 1922-1974.

DOI：10.1111/1911-3846.12328

• QUALITY
• MARKET
• SPECIALIZATION
• PERFORMANCE
• DECISIONS
• MATTER
• SIZE
• INDEPENDENCE
• RESIGNATIONS
• LITIGATION

Our study reports evidence on the dynamic effects of client switches on auditor reputations and fee premia. Offices of large accounting firms that lose (gain) major industry clients experience a reputation shock leading to more same-industry client losses (gains) over the next two years. There is also a shift in audit fees charged to other same-industry clients when a major client loss (gain) results in an audit office losing (gaining) city-level industry leadership. A major client loss or gain also creates a short-term capacity shock to an audit office's ability to supply high-quality audits. However, there is no evidence of reputation spillovers to other-industry clients in the audit office, or to clients in other offices of the accounting firm.

• 出版日期2017
• 单位中国人民大学