Audit Office Reputation Shocks from Gains and Losses of Major Industry Clients
dc.contributor.author | Mehta, Mihir N. | |
dc.contributor | Francis, Jere R. | |
dc.contributor | Zhao, Wanli | |
dc.date.accessioned | 2016-06-07T12:42:09Z | |
dc.date.available | 2016-06-07T12:42:09Z | |
dc.date.issued | 2016-05 | |
dc.identifier | 1317 | en_US |
dc.identifier.uri | https://hdl.handle.net/2027.42/120637 | |
dc.description.abstract | 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. | en_US |
dc.subject | Auditor Reputation | en_US |
dc.subject | auditor Changes | en_US |
dc.subject | audit fees | en_US |
dc.subject | earnings quality | en_US |
dc.subject | contagion | en_US |
dc.subject.classification | Accounting | en_US |
dc.title | Audit Office Reputation Shocks from Gains and Losses of Major Industry Clients | en_US |
dc.type | Working Paper | en_US |
dc.subject.hlbsecondlevel | Accounting | en_US |
dc.subject.hlbtoplevel | Business | |
dc.contributor.affiliationum | Ross School of Business | en_US |
dc.contributor.affiliationother | University of Missouri at Columbia | en_US |
dc.contributor.affiliationother | Southern Illinois University | en_US |
dc.contributor.affiliationumcampus | Ann Arbor | |
dc.description.bitstreamurl | http://deepblue.lib.umich.edu/bitstream/2027.42/120637/1/1317_Mehta.pdf | |
dc.owningcollname | Business, Stephen M. Ross School of - Working Papers Series |
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