The Contagion Effect of Audit Failure on Bond Issue Pricing:Based on the Perspective of Common Auditor
The audit failure will have a negative impact on the client enterprises,and may affect other enterprises with common auditors.Based on the perspective of common auditors,this paper selects corporate bond data from 2007 to 2022 to empirically test the contagion effect of audit failure on bond issue pricing.It is found that when audit failure occurs,the bond issuance pricing of affiliated enterprises with common auditors is significantly increased,that is,audit failure has a contagion effect on the issue pricing of bonds.The mechanism test shows that risk information transmission and low-quality accounting information are the mechanism of contagion effect caused by audit fail-ure.Further research shows that when auditors with higher diploma or industry expertise are employed and investors have less risk and better protection,the contagion effect is weakened.
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万方数据
