Audit partner identification, matching, and the labor market for audit talent

IF 3.2 3区 管理学 Q1 BUSINESS, FINANCE
Mingcherng Deng, Eunhee Kim, Minlei Ye
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Abstract

Conventional wisdom suggests that audit engagement partner name disclosure benefits investors by informing them about the partners' performance. However, such public disclosure of the identity of the audit partners may also intensify competition for audit talent in the labor market. To examine the economic consequences of audit partner identification, we build a two-period model in which an audit firm matches partners to clients. The audit partner identification broadens a partner's outside options in the labor market, making talent retention more costly. If the talent-retention cost is substantial, audit partner identification may cause an audit firm to adjust its partners' compensation packages and mismatch the partners and clients, which may lead to lower audit quality. Overall, we identify unintended consequences of audit partner identification by examining its impact on the audit labor market, and we provide economic reasons for the mixed empirical findings.

Abstract Image

审计合作伙伴的识别、匹配和审计人才的劳动力市场
传统观点认为,审计业务合伙人姓名披露可以让投资者了解合伙人的业绩,从而使投资者受益。然而,这种审计合伙人身份的公开披露也可能加剧劳动力市场对审计人才的竞争。为了检验审计合伙人识别的经济后果,我们建立了一个两期模型,其中审计公司将合伙人与客户相匹配。审计合伙人的识别拓宽了合伙人在劳动力市场上的外部选择,使得留住人才的成本更高。如果人才保留成本很大,审计合伙人的识别可能会导致审计事务所调整其合伙人的薪酬方案,使合伙人与客户不匹配,从而可能导致审计质量下降。总体而言,我们通过检查审计合伙人识别对审计劳动力市场的影响,确定了审计合伙人识别的意外后果,并为混合实证结果提供了经济原因。
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来源期刊
CiteScore
6.20
自引率
11.10%
发文量
97
期刊介绍: Contemporary Accounting Research (CAR) is the premiere research journal of the Canadian Academic Accounting Association, which publishes leading- edge research that contributes to our understanding of all aspects of accounting"s role within organizations, markets or society. Canadian based, increasingly global in scope, CAR seeks to reflect the geographical and intellectual diversity in accounting research. To accomplish this, CAR will continue to publish in its traditional areas of excellence, while seeking to more fully represent other research streams in its pages, so as to continue and expand its tradition of excellence.
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