AbstractsBusiness Management & Administration
Audit tenure, and informativeness of earnings: New Zealand evidence
| Institution: | AUT University |
|---|---|
| Department: | |
| Year: | 2012 |
| Keywords: | Audit tenure; Earnings quality |
| Record ID: | 1316891 |
| Full text PDF: | http://hdl.handle.net/10292/4779 |
Abstract
The purpose of this research is to examine the relationship between audit tenure and earnings informativeness in New Zealand. Earnings informativeness is measured by market response to level and changes in earnings and market pricing of earnings components. A total sample of 357 firm-year observations from 2002 to 2009 is used for empirical testing. The results reveal that market response to earnings is more positive for firm-year observations audited by long-tenured auditors. The market also appears to positively value the discretionary components of earnings for firm-year observations audited by long-tenured auditors.
