Acquirers' abnormal returns and the non-Big 4 auditor clientele effect

作者：Louis H^*

来源：Journal of Accounting and Economics, 2005, 40(1-3): 75-99.

DOI：10.1016/j.jacceco.2005.03.001

• merger
• auditor size
• auditor clientele
• non-audit services
• private target

I analyze the effect of auditor choice on acquirers' values around merger announcements and the factors affecting the interaction between auditor size and the market reaction to merger announcements. I find that acquirers audited by non-Big 4 accounting firms outperform those audited by Big 4 firms. This effect is more pronounced when the targets are privately held and when the likelihood of the auditors playing a prominent advisory role increases. While the largest auditing firms are usually assumed to offer superior services, the study suggests that smaller firms have a comparative advantage in assisting their clients in merger transactions.

• 出版日期2005-12