Auditor Partner Tenure and Cost of Equity Capital
We examine whether audit engagement partner tenure and rotation affect investors' perceptions, as proxied by the ex ante cost of equity capital. We find that partner tenure has a nonlinear relation with the ex ante cost of equity capital for non-Big 4 audit engagements prior to the introduction of partner rotation requirements, and that the imputed gains from partner tenure appear similar to the imputed gains of having a Big 4 auditor. Consistent with the tenure results, we also find that...[Show more]
|Collections||ANU Research Publications|
|Source:||Auditing: A Journal of Practice and Theory|
|01_Azizkhani_Auditor_Partner_Tenure_and_2013.pdf||321.9 kB||Adobe PDF||Request a copy|
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