I examine the costs and benefits to the issuer of hiring an IPO auditor specialist in the U.S. Initial Public Offerings market. I quantify IPO auditor expertise at the market share level and the market concentration level and then I investigate the audit fees of IPO audit expertise and the issuer underpricing in the U.S. IPO market. I find that there are significant fee premiums when an audit firm is a national IPO audit specialist and when an audit office is a city IPO audit specialist. I also find that IPO specialist auditors reduce first-day issuer underpricing. These results are robust to controlling for extant endogeneity with respect to choice of auditor. This paper contributes to both the auditor specialization literature and the IPO literature by investigating IPO audit specialization. This study also provides useful information to IPO market participants, such as issuers, investors, auditors, and regulators.
| Identifer | oai:union.ndltd.org:LSU/oai:etd.lsu.edu:etd-02222017-162323 |
| Date | 09 March 2017 |
| Creators | Park, Jung Eun |
| Contributors | Reichelt, Kenneth, Massel, Norman, He, Shan, Chanda, Areendam |
| Publisher | LSU |
| Source Sets | Louisiana State University |
| Language | English |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lsu.edu/docs/available/etd-02222017-162323/ |
| Rights | unrestricted, I hereby certify that, if appropriate, I have obtained and attached herein a written permission statement from the owner(s) of each third party copyrighted matter to be included in my thesis, dissertation, or project report, allowing distribution as specified below. I certify that the version I submitted is the same as that approved by my advisory committee. I hereby grant to LSU or its agents the non-exclusive license to archive and make accessible, under the conditions specified below and in appropriate University policies, my thesis, dissertation, or project report in whole or in part in all forms of media, now or hereafter known. I retain all other ownership rights to the copyright of the thesis, dissertation or project report. I also retain the right to use in future works (such as articles or books) all or part of this thesis, dissertation, or project report. |
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