The relationship between audit quality and cost of equity
Date Issued
2006
Date
2006
Author(s)
Chiu, Chia-lin
DOI
en-US
Abstract
Whether investors price audit quality, the proxy for the information risk, is investigated in this study. Audit quality is measured in this research as audit firm size, industry specialist, economic dependence on a specific-client, accrual quality and audit firm tenure. Based on theoretical models predicting a positive association between information risk and cost of equity, the finding suggests that poorer audit quality is associated with higher costs of equity even after controlling for auditors’ potential self-selection bias.
Subjects
審計品質
權益資金成本
audit quality
information risk
cost of equity
Type
other
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ntu-95-R92722048-1.pdf
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