2020年5月12日学术报告通知

发布时间:2020-05-11

嘉宾简介:

吴东辉,香港中文大学教授,本科和硕士均就读于厦门大学,从香港中文大学毕业取得会计学博士学位。吴东辉教授先后在国际知名会计和管理学期刊如The Accounting Review, Management Science, 和Review of Accounting Studies等上发表多篇论文,现为Contemporary Accounting Research特约编辑,China Journal of Accounting Research副主编。吴东辉教授对资本市场的企业财务报告,中国的会计、审计和公司财务问题有浓厚研究兴趣。

内容提要:

Reputation has long been recognized as an important mechanism to mitigate opportunistic behavior in the audit market. However, whether and how reputation motivates auditors to provide high-quality audits is empirically not clear. We exploit the Chinese audit market, where a group of auditors is titled “senior CPAs.” Representing the highest professional recognition, the designation of senior CPA enhances auditors’ reputation in an observable manner. Based on a difference-in-differences design, we find that, following the senior-CPA designation, auditors improve audit quality in terms of audit reporting and soundness of audited financial statements.Such a reputation effect is more pronounced in regions with more developed market institutions and for auditors with longer practice experience. The senior-CPA designation is also followed by several market consequences, including audit-fee premiums commanded and larger audit market shares gained by the senior CPAs, and higher market valuation of earnings audited by the senior CPAs. Overall, our study provides novel evidence on how the reputation mechanism shapes auditor behavior and matters to capital market participants.