Auditor compensation, disclosure quality,教程.pdf

Journal of Accounting and Public Policy 24 (2005) 325–354 /locate/jaccpubpol Auditor compensation, disclosure quality, and market liquidity: Evidence from the stock market Asli Ascioglu a,1, Shantaram P. Hegde b,2, John B. McDermott c,* a Department of Finance, Bryant University, Smithfield, RI 02917, USA b Department of Finance, University of Connecticut, Storrs, CT 06269, USA c Department of Finance, Fairfield University, Fairfield, CT 06824, USA Abstract Previous studies on the effects of auditor compensation on disclosure quality have focused on accounting measures, such as earnings management, discretionary accruals, and restatements. In contrast, we investigate the impact of fees paid for audit and non- audit services on a market-based measure of disclosure quality and stock market liquid- ity. Based on a large sample of NYSE-traded SP 1500 stocks, we find only weak evidence to support the argument that auditor compensation lowers firm disclosure quality and market liquidity. This finding is robust to alternative measures of bid-ask spreads and asymmetric information costs of trading. In addition, we find some evi- dence to suggest that the adverse effects of auditor compensation on market liquidity are concentrated in firms with weak corporate governance mechanisms. Our results * Corresponding author. Tel.: +1 (860) 444 8339. E-mail addresses: ascioglu@ (A. Ascioglu), shantaram@ (S.P. Hegde), jmcdermott@mail.fairfi (J.B. McDermott). 1 Tel.: +1 (401) 232 6873. 2 Tel.: +1 (860) 486 5135. 0278-4254/$ - see front matter Published by Elsevier Ltd. doi:10.1016/j.jaccpubpol.2005.05.002 326 A. Ascioglu et al. / Journal of Accounting and Public Policy 2