Shareholder Voting on Auditor Selection, Audit Fees, and Audit Quality

• 成果类型: Article
• 署名作者: Dao, Mai; Raghunandan, K.; Rama, Dasaratha V.
• 署名单位: University System of Ohio; University of Toledo; State University System of Florida; Florida International University
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr-10159
• 发表日期: 2012
• 页码: 149-171
• 关键词: industry specialization; accounting restatements; corporate governance; nonaudit services; price; COMPETITION; INDEPENDENCE; engagements; management; MARKET

摘要

The Advisory Committee on the Auditing Profession (ACAP), formed by the U.S. Department of the Treasury, has recommended that all public companies be required to have shareholder ratification of auditor selection. Using data from 1,382 firms for the year ending December 31, 2006, we find that audit fees are higher in firms with shareholder voting on auditor ratification. We also find that firms that started having a shareholder vote pay higher fees than firms that stopped having a shareholder vote. In the second part of our study, we find that in firms with shareholder voting on auditor selection (1) subsequent restatements are less likely and (2) abnormal accruals are lower. Our findings are consistent with the experimental results in Mayhew and Pike (2004), and provide empirical grounding for the debate about mandating shareholder voting on auditor selection.