Journal article
A Two-Sided Matching Model of the Audit Market for IPO Firms
Abstract
We estimate a two-sided matching model of IPO firms to auditors. Doing so allows us to separate the effects of sorting and influence in this audit market, and identify the effect that each has on observed audit quality. We find evidence that sorting on inherent quality of the client exists at the time auditors and clients match with each other. However, even after controlling for the effects of sorting, Big 4 auditors exert positive influence …
Authors
Li K; McNichols MF; Raghunandan A
Journal
, , ,
Publisher
Elsevier
Publication Date
January 1, 2018
DOI
10.2139/ssrn.3117828
ISSN
1556-5068