Audit firm industry specialization and client disclosure quality

• 成果类型: Article
• 署名作者: Dunn, KA; Mayhew, BW
• 署名单位: University of Wisconsin System; University of Wisconsin Madison; State University System of Florida; Florida Atlantic University
• 刊物名称: REVIEW OF ACCOUNTING STUDIES
• ISSN/ISSBN: 1380-6653
• DOI: 10.1023/B:RAST.0000013628.49401.69
• 发表日期: 2004
• 页码: 35-58
• 关键词: earnings; fees

摘要

This paper provides evidence that clients select auditors as part of their overall disclosure strategy. We hypothesize that in addition to higher quality audits, industry-specialist audit firms assist clients in enhancing disclosures. We also posit that the choice of an industry-specialist auditor signals a client's intention to provide enhanced disclosures. However, we predict that industry-specialist audit firms are less important in regulated industries where enhanced disclosures add little value. Consistent with our hypotheses, we document a positive association between industry-specialist audit firms and analysts' rankings of disclosure quality in unregulated industries, but no relation in regulated industries.