What's in a Name? Initial Evidence of US Audit Partner Identification Using Difference-in-Differences Analyses

• 成果类型: Article
• 署名作者: Cunningham, Lauren M.; Li, Chan; Stein, Sarah E.; Wright, Nicole S.
• 署名单位: University of Tennessee System; University of Tennessee Knoxville; University of Kansas; Virginia Polytechnic Institute & State University; James Madison University
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr-52305
• 发表日期: 2019
• 页码: 139-163
• 关键词: earnings management; discretionary accruals; asymmetric timeliness; industry expertise; quality evidence; conservatism; LITIGATION; benefits; ACCOUNTABILITY; CONSEQUENCES

摘要

We investigate changes in the quality and cost of audit services surrounding PCAOB Rule 3211, which requires disclosure of audit partner names in Form AP. To isolate changes due to Rule 3211 from other confounding factors, we use difference-in-differences analyses with separate control groups, including a group of companies that disclosed partner identities prior to Rule 3211. Our study also incorporates several measures from prior literature to proxy for various dimensions of audit quality. Evidence from the difference-in-differences analyses reveals that any immediate impact of Rule 3211 on audit quality or fees is limited to specific dimensions of audit quality, specific control groups, and/or specific company characteristics. We reach this conclusion after considering alternative research designs and evaluating confidence intervals for statistically insignificant coefficients. We caution that our findings only provide initial evidence and further research is necessary to evaluate other potential impacts of Rule 3211.