volume 35, issue 8, P1121-1142 2020
DOI: 10.1108/maj-07-2019-2360
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Curtis M. Hall, Benjamin W. Hoffman, Zenghui Liu

Abstract: Purpose This paper aims to investigate the effect that ownership structure (public vs private) has on the demand for high-quality auditors, specifically in the US banking industry. Design/methodology/approach The authors predict that public banks are more likely to hire a high-quality auditor than private banks and pay a higher audit fee premium for that high-quality auditor (due to higher agency costs, more demand for financial information and higher litigation risk). The authors analyze 2008–2014 banking …

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