The Impact of Credit Market Development on Auditor Choice: Evidence from Banking Deregulation
Understanding the forces that govern firms’ auditor choice decisions has long attracted attention from regulators, academics, and practitioners. High-quality auditors can provide greater assurance of the credibility of financial reporting. This improved assurance mitigates agency costs arising from adverse selection and moral hazard between firms and their capital providers, and in turn improves resource allocation and contracting… Read More »
