Auditor certification and long-run performance of IPO stocks

IF 6.1 2区 经济学 Q1 BUSINESS, FINANCE
Sudip Datta , Mark Gruskin , Mai Iskandar-Datta
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引用次数: 0

Abstract

This study establishes a significant positive relation between high quality auditors and long-run post-IPO equity performance. IPOs associated with high-ranked auditors benefit from superior information quality irrespective of underwriter rank, manifesting in significantly better post-IPO equity performance. The auditor certification effect is robust and persists longer than the underwriter certification effect. IPOs, regardless of the underwriter rank, benefit significantly from the auditor reputation effect. Further, the auditor certification effect is more pronounced: (a) when underwriter certification is weak (‘substitution effect’), and (b) in the presence of greater information asymmetry. VC backed IPOs perform significantly better; however, VC reputation has no effect, after controlling for auditor rank and underwriter certification. Our conclusions are reinforced by a battery of robustness checks, including the use of alternative methodologies to address endogeneity, audit quality proxies, performance metrics, model specifications, and validity tests.

审计师认证与 IPO 股票的长期表现
本研究确定了高质量审计师与首次公开募股后长期股票表现之间的显著正相关关系。无论承销商排名如何,与高排名审计师相关的首次公开发行股票都能从卓越的信息质量中获益,表现为显著更好的首次公开发行后股票表现。与承销商认证效应相比,审计师认证效应更为稳健,且持续时间更长。无论承销商排名如何,IPO 都能从审计师声誉效应中显著受益。此外,审计师认证效应在以下情况下更为明显:(a) 承销商认证较弱("替代效应");(b) 信息不对称程度较高。风险投资支持的 IPO 表现明显更好;然而,在控制了审计师等级和承销商认证之后,风险投资的声誉没有影响。通过一系列稳健性检验,包括使用替代方法来解决内生性问题、审计质量替代物、绩效指标、模型规格和有效性检验,我们的结论得到了加强。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
7.70
自引率
9.30%
发文量
78
审稿时长
34 days
期刊介绍: The Journal of Financial Stability provides an international forum for rigorous theoretical and empirical macro and micro economic and financial analysis of the causes, management, resolution and preventions of financial crises, including banking, securities market, payments and currency crises. The primary focus is on applied research that would be useful in affecting public policy with respect to financial stability. Thus, the Journal seeks to promote interaction among researchers, policy-makers and practitioners to identify potential risks to financial stability and develop means for preventing, mitigating or managing these risks both within and across countries.
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