This study examines whether auditor industry specialization plays a significant role in reducing clients’ seasoned equity offering (SEO) underpricing. From 1,249 SEO samples covering 2001 to 2008, we find a significant and negative association between auditor industry specialization and SEO underpricing. Typically, underpricing decreases by 23.1% when the issuing firm is audited by industry specialists. We then extend our sample period to 2013 to examine whether the market evaluation of auditor industry specialization significantly changes after the onset of the global financial crisis (GFC). Our results show that the negative association between auditor industry specialization and SEO underpricing loses its statistical significance in the post-crisis period. These findings suggest that the market suspicion of the auditor’s role as a market 'watchdog' leading up to the GFC significantly altered investors’ perceptions ofauditors and thus impaired the market evaluation of industry specialist auditors.
Keywords: SEO underpricing, industry specialist auditor, global financial crisis
자료실
자료실
[2015년 제 1차] Industry Specialist Auditors, SEO Underpricing, and
작성자 : 관리자
조회수 : 910
게시일 :
2015-03-04