U.S. Big 4 and Local Auditors in the China Initial Public Offering Market

Zhi Yuan Feng, Hua Wei Huang, Mai Dao

研究成果: Article

摘要

This paper examines (1) whether auditor type affects initial public offering (IPO) pricing; (2) whether the effect of IPO pricing is different for clients with different ownership structures. We find that (1) firms being audited by Big 4 accounting firms receive IPO premium while others being audited by local accounting firms do not; (2) Big 4 auditors receive higher audit fees than China's Top 10 or small local auditors. This paper extends the prior research (e.g., Kumar, P and N Langberg (2009). Corporate fraud and investment distortions in efficient capital markets. The RAND Journal of Economics, 40, 144-172) that reduces agency conflicts between shareholders and manager (by means of better audit quality) and also reconciles corporate misreporting and investment distortions.

原文English
文章編號1950024
期刊Review of Pacific Basin Financial Markets and Policies
22
發行號4
DOIs
出版狀態Published - 2019 十二月 1

    指紋

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

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