Political Connection and the Demand for Industry Specialist Auditors
@article{Brooks2016PoliticalCA, title={Political Connection and the Demand for Industry Specialist Auditors}, author={L. Z. Brooks}, journal={Accounting and Finance Research}, year={2016}, volume={5}, pages={210} }
Prior literature suggests that political connected firms are more likely to be associated with lower financial reporting quality than non-political connected firms. Industry specialist auditors have a higher reputation to provide high quality audit. Thus, I hypothesize that political connected firms have a higher demand for industry specialists in order to minimize the agency costs associated with political connection. Consistent with my prediction, I find a significant positive association… CONTINUE READING
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