Capital Market Consequences of Audit Partner Quality
研究了审计合伙人个人质量对资本市场的影响，发现高质量合伙人能提高客户盈余反应系数、降低IPO抑价并改善债务条款，对投资者和债权人具有信息价值。
ABSTRACT This paper examines whether the identity of the individual audit partners provides informational value to capital market participants beyond the value provided by the identity of the audit firms. Using data from Taiwan, where firms are mandated to disclose the names of the engagement partners, we find a positive association between the partner's quality and the client firm's earnings response coefficient. We also find a positive market reaction when a firm replaces a lower quality partner with a higher quality one. Moreover, we find evidence that firms audited by higher quality partners experience smaller initial public offering (IPO) underpricing and are able to obtain better debt contract terms. Overall, these results suggest that the quality of engagement partners matters to capital market participants.