The Association between Auditor Tenure and Earnings Quality

• Main Authors: Zih-Ciao Lan, 藍子喬
• Other Authors: Der-Fen Huang
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/bz5try

碩士 === 國立東華大學 === 企業管理學系 === 96 === Recently, many studies investigate whether auditor tenure harm earnings quality. This paper examines the association between auditor tenure and earnings quality under the unique dual-attestation system in Taiwan. After controlling audit firm, customer firm size, financial leverage, operating cash flows and loss, the empirical findings show that the longer the auditor tenure is, the more earnings quality improves. It also shows a significant positive association between auditor tenure and earnings persistence. The sensitivity analyses show that mandatory auditor rotation cannot improve earnings quality.