This paper aims to examine whether firms retaining industry-specialist auditors receive better price and non-price terms for bank loans.
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.
It was found that companies retaining industry-specia…
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