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Acquirers' abnormal returns and the non-Big 4 auditor clientele effect

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  • Louis, Henock

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  • Louis, Henock, 2005. "Acquirers' abnormal returns and the non-Big 4 auditor clientele effect," Journal of Accounting and Economics, Elsevier, vol. 40(1-3), pages 75-99, December.
    • Handle: RePEc:eee:jaecon:v:40:y:2005:i:1-3:p:75-99
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    8. Sara B. Moeller & Frederik P. Schlingemann & René M. Stulz, 2005. "Wealth Destruction on a Massive Scale? A Study of Acquiring‐Firm Returns in the Recent Merger Wave," Journal of Finance, American Finance Association, vol. 60(2), pages 757-782, April.
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    11. Leland, Hayne E & Pyle, David H, 1977. "Informational Asymmetries, Financial Structure, and Financial Intermediation," Journal of Finance, American Finance Association, vol. 32(2), pages 371-387, May.
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    24. DeAngelo, Linda Elizabeth, 1981. "Auditor size and audit quality," Journal of Accounting and Economics, Elsevier, vol. 3(3), pages 183-199, December.
    25. Ettredge, Mike & Simon, Dan & Smith, David & Stone, Mary, 1994. "Why do companies purchase timely quarterly reviews?," Journal of Accounting and Economics, Elsevier, vol. 18(2), pages 131-155, September.
    26. Lang, Larry H. P. & Stulz, ReneM. & Walkling, Ralph A., 1989. "Managerial performance, Tobin's Q, and the gains from successful tender offers," Journal of Financial Economics, Elsevier, vol. 24(1), pages 137-154, September.
    27. Steven Shavell, 1994. "Acquisition and Disclosure of Information Prior to Sale," RAND Journal of Economics, The RAND Corporation, vol. 25(1), pages 20-36, Spring.
    28. Kathleen Fuller & Jeffry Netter & Mike Stegemoller, 2002. "What Do Returns to Acquiring Firms Tell Us? Evidence from Firms That Make Many Acquisitions," Journal of Finance, American Finance Association, vol. 57(4), pages 1763-1793, August.
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    30. Raghavendra Rau, P. & Vermaelen, Theo, 1998. "Glamour, value and the post-acquisition performance of acquiring firms," Journal of Financial Economics, Elsevier, vol. 49(2), pages 223-253, August.
    31. Larcker, David F. & Lys, Thomas, 1987. "An empirical analysis of the incentives to engage in costly information acquisition : The case of risk arbitrage," Journal of Financial Economics, Elsevier, vol. 18(1), pages 111-126, March.
    32. Scanlon, Kevin P & Trifts, Jack W & Pettway, Richard H, 1989. "Impacts of Relative Size and Industrial Relatedness on Returns to Shareholders of Acquiring Firms," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 12(2), pages 103-112, Summer.
    33. Kevin P. Scanlon & Jack W. Trifts & Richard H. Pettway, 1989. "Impacts Of Relative Size And Industrial Relatedness On Returns To Shareholders Of Acquiring Firms," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 12(2), pages 103-112, June.
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    Cited by:

    1. Hanish Rajpal & Pawan Jain, 2018. "Auditor’s Characteristics and Earnings Management in India," Accounting and Finance Research, Sciedu Press, vol. 7(4), pages 1-43, November.
    2. Michaely, Roni & Rubin, Amir & Vedrashko, Alexander, 2016. "Are Friday announcements special? Overcoming selection bias," Journal of Financial Economics, Elsevier, vol. 122(1), pages 65-85.
    3. duréndez gómez-guillamón, Antonio luis & maté sanchez-val, Mariluz, 2012. "The geographical factor in the determination of audit quality," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 15(2), pages 287-310.
    4. Nguyen, Giang & Nguyen, Hai, 2019. "Does seller status matter in inter-corporate asset sales?," Journal of Banking & Finance, Elsevier, vol. 100(C), pages 97-110.
    5. Jeffrey Harrison & Matthew Hart & Derek Oler, 2014. "Leverage and acquisition performance," Review of Quantitative Finance and Accounting, Springer, vol. 43(3), pages 571-603, October.
    6. Bedford, Anna & Bugeja, Martin & Czernkowski, Robert & Bond, David, 2023. "Is the effect of shared auditors driven by shared audit partners? The case of M&As," The British Accounting Review, Elsevier, vol. 55(2).
    7. Cai, Ye & Kim, Yongtae & Park, Jong Chool & White, Hal D., 2016. "Common auditors in M&A transactions," Journal of Accounting and Economics, Elsevier, vol. 61(1), pages 77-99.
    8. Yip, Rita W.Y. & Young, Danqing & Liu, Beibei & Wang, Zhichen, 2022. "Acquiring firms’ transparency and their returns around M&A announcements: Evidence from China," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 48(C).
    9. Bi, XiaoGang & Tang, Judy & Tharyan, Rajesh, 2020. "Switching due diligence auditor in Chinese mergers and acquisitions," Research in International Business and Finance, Elsevier, vol. 54(C).
    10. DeFond, Mark & Zhang, Jieying, 2014. "A review of archival auditing research," Journal of Accounting and Economics, Elsevier, vol. 58(2), pages 275-326.
    11. Stephanie Monteiro Miller, 2022. "Dual 8-K filings and auditor downward switches," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 19(2), pages 204-217, June.
    12. Xia, Yanchun & Wong, Sonia & Xin, Qingquan, 2024. "Auditor choice in reverse mergers: Evidence from China," The British Accounting Review, Elsevier, vol. 56(2).
    13. Paul J. Coram & Yi (Dale) Fu & Mukush Garg & Noel Harding & David C. Hay & Mohammad Jahanzeb Khan & Nora Muñoz‐Izquierdo & Ashna Prasad & Nigar Sultana & Jamie Tong, 2022. "Comments of the AFAANZ auditing and assurance standards committee on proposed international standard on auditing ISA for LCE," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(3), pages 4219-4244, September.
    14. Pinghsun Huang & Yi-Chieh Wen & Yan Zhang, 2020. "Does the monitoring effect of Big 4 audit firms really prevail? Evidence from managerial expropriation of cash assets," Review of Quantitative Finance and Accounting, Springer, vol. 55(2), pages 739-768, August.
    15. Comprix, Joseph & Huang, Huichi, 2015. "Does auditor size matter? Evidence from small audit firms," Advances in accounting, Elsevier, vol. 31(1), pages 11-20.
    16. DeFond, Mark L. & Lennox, Clive S., 2011. "The effect of SOX on small auditor exits and audit quality," Journal of Accounting and Economics, Elsevier, vol. 52(1), pages 21-40, June.
    17. Dhaliwal, Dan S. & Lamoreaux, Phillip T. & Litov, Lubomir P. & Neyland, Jordan B., 2013. "Shared Auditors in Mergers and Acquisitions," Working Papers 13-14, University of Pennsylvania, Wharton School, Weiss Center.
    18. Li-Jen He & Jianxiong Chen, 2021. "Does Mandatory Audit Partner Rotation Influence Auditor Selection Strategies?," Sustainability, MDPI, vol. 13(4), pages 1-21, February.
    19. Henock Louis & Amy Sun, 2010. "Investor Inattention and the Market Reaction to Merger Announcements," Management Science, INFORMS, vol. 56(10), pages 1781-1793, October.
    20. Kim, Yongtae & (Nancy) Su, Lixin & (Stephen) Zhou, Gaoguang & (Kevin) Zhu, Xindong, 2020. "PCAOB international inspections and Merger and Acquisition outcomes," Journal of Accounting and Economics, Elsevier, vol. 70(1).
    21. Ozge Uyger & Gulser Meric & Ilhan Meric, 2014. "Market Reaction to Acquisition Announcements after the 2008 Stock Market Crash," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 8(4), pages 75-82.
    22. Harris, M. Kathleen & Williams, L. Tyler, 2020. "Audit quality indicators: Perspectives from Non-Big Four audit firms and small company audit committees," Advances in accounting, Elsevier, vol. 50(C).
    23. Klasa, Sandy & Litov, Lubomir P. & Neyland, Jordan & Sepe, Simone M., 2013. "Does Legal Counsel Expertise Add Value? Evidence from Mergers and Acquisitions," Working Papers 13-27, University of Pennsylvania, Wharton School, Weiss Center.
    24. Dhaliwal, Dan S. & Lamoreaux, Phillip T. & Litov, Lubomir P. & Neyland, Jordan B., 2016. "Shared auditors in mergers and acquisitions," Journal of Accounting and Economics, Elsevier, vol. 61(1), pages 49-76.
    25. Bugeja, Martin, 2011. "Takeover premiums and the perception of auditor independence and reputation," The British Accounting Review, Elsevier, vol. 43(4), pages 278-293.

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