Do Big-4 auditors enhance firm’s value in Eastern Asia?

• Main Authors: Tzu-Hsuan Wang, 王資萱
• Other Authors: Chu-Hua Wu
• Format: Others
• Language: en_US
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/04168347901692133301

碩士 === 元智大學 === 財務金融學程 === 99 === This paper investigates whether hiring Big-4 auditor could mitigate the agency problem and alleviate the conflicts between manager and share/debt holders, not just serves as a bonding mechanism of corporate governance. The data will be collected from 6 emerging markets during 2002 to 2008 in Eastern Asia where the agency problem is more severe than other developed countries. We want to test whether Big-4 auditors can mitigate agency cost or it is just a governance bonding mechanism in law. This paper further proves that after employing Big-4 auditors, the firm value measured by ROA, TOBINS’Q and SALES will be improved.