volume 32, issue 3, P295-324 2017
DOI: 10.1108/maj-07-2015-1230
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Yinghong Zhang, Fang Sun, Chunwei Xian

Abstract: Purpose This paper aims to examine whether firms retaining industry-specialist auditors receive better price and non-price terms for bank loans. Design/methodology/approach Based on a sample of companies retaining big N auditors during the 2000-2010 period, this paper constructed six proxies for auditor industry expertise and tested three major loan terms: loan spreads, number of general and financial covenants and requirements for collateral. Findings It was found that companies retaining industry-specia…

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