Does Auditor Industry Specialization Matter? Evidence from Market Reaction to Auditor Switches

By W. Robert Knechel, Vic Naiker, G. Pacheco. 2007

268 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/b7ffd89da72851b2932cc20b0a0fc27bf8d59e2a

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Citations in the corpus

Do Financial Restatements Lead to Auditor Changes (2013, methodology): “10 Following Collins et al. (2009), we use the cumulative market-adjusted abnormal returns for the three day window (i.e., [-1, +1]) surrounding the restatement announcement date.”
Is Enhanced Audit Quality Associated with Greater Real Earnings Management (2011, background): “Knechel et al. (2007) find that firms audited by specialists receive higher valuations, and Dunn and Mayhew (2004) find that these firms have better disclosure quality.”
Auditor quality and earnings management: Singaporean evidence (2010, result): “This finding is in line with Knechel et al. (2007)”
Internal Audit Outsourcing and the Risk of Misleading or Fraudulent Financial Reporting: Did Sarbanes-Oxley Get It Wrong? (2012, unknown): “industry specialist auditor in a similar fashion to Mayhew and Wilkins (2003) and Knechel et al. (2007): an external audit firm is considered the industry specialist (AuditorSpecialist = 1) if the firm provides 30 percent or more of the within-industry market share.”
Do Industry-Specialist Auditors Influence Stock Price Crash Risk? (2015, unknown): “2009), and positive market reaction (Knechel et al. 2007).”
Crash Risk and the Auditor-Client Relationship (2017, methodology): “…professional standards of care with respect to communications with Lehman’s Audit Committee, investigation of a whistleblower claim, and audits and reviews of Lehman’s 1 Another two engagement risks to which auditors are exposed are reputation risk and regulation risk (Knechel et al. 2007a).”