Market Reaction to Auditor Ratification Vote Tally

作者：Tanyi Paul N; Roland Kristin C

来源：Accounting Horizons, 2017, 31(1): 141-157.

DOI：10.2308/acch-51656

<jats:title>SYNOPSIS</jats:title>
<jats:p>This paper provides empirical evidence that the proportion of shareholder votes against the ratification of the auditor is informative to investors' perception of the auditor-client relationship. We find that lower shareholder approval of the auditor is associated with a negative market reaction to the 8-K announcement of the auditor ratification vote. Additionally, we find that the market reaction is more negative when a high level of auditor dissatisfaction is likely a surprise to investors, such as when audit and auditor characteristics suggest that the auditor provides high audit quality. We provide confirming evidence that withheld votes are associated with a higher likelihood of a future auditor dismissal and that the market reaction to the dismissal is more positive for firms with lower shareholder approval of the auditor.</jats:p>
<jats:p>JEL Classifications: G34; G30; M40.</jats:p>

• 出版日期2017-3
• 单位University of North Carolina at Charlotte; The University of North Carolina at Charlotte