Auditor Tenure and Stock Price Idiosyncratic Volatility: The Moderating Role of Industry Specialization
研究了审计师任期如何影响投资者对财务报告质量的看法，发现较长任期与更高股票价格特质波动相关，且该效应仅存在于行业专长审计师中。
SUMMARY In this study, we examine how investors perceive the quality of financial reports audited by auditors with long tenure. We argue that auditor tenure is an important characteristic that influences the effectiveness of audits and thus affects the amount of firm-specific information that is included in stock prices by investors. Based on a sample of U.S. firms from 2003 to 2012, we show that longer tenure is associated with higher stock price idiosyncratic volatility. Further analyses reveal that this effect is only present for industry-specialist auditors, suggesting that the effect of tenure on idiosyncratic volatility is contingent on industry expertise. Our results have a number of implications for the financial markets and the accounting and auditing professions.