Are Assurance Services Provided by Auditors on Initial Public Offerings Influenced by Market Conditions?

• 成果类型: Article
• 署名作者: Copley, Paul A.; Douthett, Edward B., Jr.
• 署名单位: James Madison University; George Mason University
• 刊物名称: CONTEMPORARY ACCOUNTING RESEARCH
• ISSN/ISSBN: 0823-9150
• DOI: 10.1506/car.26.2.6
• 发表日期: 2009
• 页码: 453-+
• 关键词: hot; DECISION; IMPACT; RISK; fees

摘要

The initial public offering (IPO) market is characterized by large, periodic swings in new issue volume, commonly referred to as hot and cold markets. We compare IPO assurance fees over these cycles controlling for factors that are potentially associated with hot IPO markets. We find that average assurance fees are lower during hot market periods and that fee coefficients associated with certain client- and IPO-specific attributes are lower during hot markets. Our results are consistent with the explanation that IPO assurance services are influenced by varying client demands to defer or accelerate the date of the new issue in order to capitalize on market conditions.