Auditor Industry Expertise and Credit Rating:A Firm Level and Individual Auditor Level Analysis

• Main Authors: Yu-JieHuang, 黃鈺絜
• Other Authors: Cheng-Jen Chiu
• Format: Others
• Language: en_US
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/47437484118636504812

碩士 === 國立成功大學 === 財務金融研究所 === 100 === In this study, we examine the association between credit rating and an auditor’s industry expertise by using Taiwanese data. In light of previous studies (e.g., Li et al. 2010) examining only the relation between industry specialization and cost of debt at only the audit firm level in western countries, we further examine the association between industry specialization and cost of debt at the individual auditor level. The results indicate that the clients of industry specialists at the firm level or partner level have a higher credit rating. We also find that both male and female partner specialists are able to enhance the company's audit quality, thus resulting in a higher credit rating.