Diversification and auditor choice

• Main Authors: Min-Hsuan Tsai, 蔡旻宣
• Other Authors: Shou-Min Tsao
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/01031354995415850483

碩士 === 國立中央大學 === 企業管理研究所 === 99 === 　　This study examines how the extent of diversification influence audit quality and the moderating role of audit quality on the excess value attributed to diversification. An explicit distinction is made between international and industry diversification. The empirical evidence reveals that the extent of both international diversification and industry diversification are positively related to the likelihood to appoint high-quality auditors. Further, firms appointing high-quality auditor suffer less diversification discount attributed to diversification. Overall, our results are consistent with the conjecture that high-quality auditor is an effective mechanism to reduce agency costs arising from diversification.