The Association between Auditor Tenure and Analyst Earnings Forecast
| Autor: | Wan-Yu Wan, 吳婉瑜 |
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| Rok vydání: | 2014 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 102 Following many events on accounting scandals such as Enron case in USA and Pro Comp Informatics case in Taiwan, the capital market has suffered a major impact, causing a decline in audit quality. To secure the market, the government strives to improve the audit quality through the mandatory auditor rotation. This study examines the association between analyst earnings forecast errors and audit tenure under the dual attestation system in a sample that contains firms trading on Taiwan Stock Exchange and Gretai Securities Markets over the period1989 to 2012. This study measures tenure using five methods, the first four methods calculating the length of auditor-client relationship by audit-partner and by different perspectives, and the last one by audit-firm. The results with all of five methods consistently show that audit tenure is significantly negatively associated with analyst earnings forecast errors and forecast dispersion, suggesting that the more familiar the client is to the auditor, the more accurate and agreed on analyst earnings forecasts. However, the results show that the above association is non-linear, indicating that over familiarity exacerbates analyst forecast errors and dispersion. This study reports the main results after winsorizing observations which have the largest 0.5% and smallest 0.5% values for variables. In addition, this study deletes these extreme values as a sensitivity analysis and gets similar results. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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