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Auditor Tenure and Perceived Earnings Quality
International Journal of Auditing, 2016The study examines how auditor tenure affects investors' perception of audit quality. It is motivated by the ongoing debate on the effect of auditor tenure on audit quality and the recent regulation approval on mandatory auditor rotation at the EU level, which is justified by the concern that longer auditor tenure impairs auditor independence and thus ...
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Auditor size, tenure, and bank loan pricing
Review of Quantitative Finance and Accounting, 2012Using a large sample of U.S. bank loan data from 1996 to 2008, we investigate the relation between two auditor characteristics, namely, auditor size and tenure, and loan interest rates. Our results show the following: First, we find that the loan interest rate is significantly lower for borrowers with prestigious Big 4 auditors than for borrowers with ...
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