Audit Firm Tenure and the Equity Risk Premium

By J. P. Boone, Inder K. Khurana, K. K. Raman. 2008

129 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/c99c3d896b445d675cba2d224f86cf4c72108616

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. W. Robert Knechel
2. Michael Firth
3. Oliver M. Rui
4. Mikhail Pevzner
5. Monika Causholli
6. Lingzi Lin
7. Nopmanee Tepalagul
8. Uma Velury

In Finance

1. Oliver M. Rui
2. W. Robert Knechel
3. Michael Firth
4. Gopal V. Krishnan
5. Mikhail Pevzner
6. Xi Wu
7. Lingzi Lin
8. Lori B. Shefchik

In Strategy and Management

1. W. Robert Knechel
2. Mikhail Pevzner
3. Uma Velury
4. Lori B. Shefchik
5. Monika Causholli
6. Michael Firth
7. Gopal V. Krishnan
8. Xi Wu

Citations in the corpus

• Corporate Life Cycle and Cost of Equity Capital (2015, unknown): “Growth opportunity is characterized by uncertainty and risk and, therefore, is expected to be positively associated with the cost of equity capital (Boone et al., 2008; Chan et al., 1991; Fama and French, 1992; Khurana and Raman, 2004).”
• Auditor Independence and Audit Quality (2015, background): “Boone, Khurana, and Raman (2008) suggest that the relation between audit firm tenure and investor perception of independence is not linear, as reflected in the equity risk premium.”
• An Examination of the Credence Attributes of an Audit (2012, background): “However, once an auditor change has occurred, the negotiating power may revert to the auditor because an auditee cannot switch auditors frequently without incurring sizable transaction costs (Hackenbrack and Hogan 2002; Boone et al. 2008).”
• Audit Quality: Insights from the Academic Literature (2013, background): “On the other hand, Boone et al. (2008) find that client’s risk premium (cost of equity in excess of risk free rate) increases as auditor tenure increases, implying that markets view auditor tenure as a risk factor.”
• How Do Various Forms of Auditor Rotation Affect Audit Quality? Evidence from China (2012, background): “, 2004; Ghosh and Moon, 2005), and other studies suggest a nonlinear relation (Boone et al., 2008). Furthermore, some studies find that mandatory audit firm rotation enhances perceived FRQ/AQ (Jeong et al., 2005; Jennings et al., 2006), whereas others do not (e.g., Kaplan and Mauldin, 2008). Finally”