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Auditor change during listings: effect on IPO premiums

The study examined the relationship between choice of quality differentiated audit firm and initial return at listing. It is conjectured that the superior audit quality of Tier 1 audit firms helps to reduce ex-ante uncertainty and consequently reduces the initial premiums at listing. The findings sh...

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Main Authors: Ramadilli Mohd, Shamsher Mohamad, Ahmed, Huson Joher Ali
Format: Article
Language:English
Published: Universiti Putra Malaysia Press 2001
Online Access:http://psasir.upm.edu.my/id/eprint/3324/1/Auditor_Change_During_Listings_Effect_on_IPO_Premiums.pdf
http://psasir.upm.edu.my/id/eprint/3324/
http://www.pertanika.upm.edu.my/view_archives.php?journal=JSSH-9-2-9
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spelling my.upm.eprints.33242015-09-11T01:36:41Z http://psasir.upm.edu.my/id/eprint/3324/ Auditor change during listings: effect on IPO premiums Ramadilli Mohd, Shamsher Mohamad Ahmed, Huson Joher Ali The study examined the relationship between choice of quality differentiated audit firm and initial return at listing. It is conjectured that the superior audit quality of Tier 1 audit firms helps to reduce ex-ante uncertainty and consequently reduces the initial premiums at listing. The findings show that there is an inclination for listed firms to engage Tier 1 audit firms, and no significant difference in the initial returns of IPOs firms audited by either Tier 1 or Non-Tier 1 audit firms were observed. However, higher significant initial returns for new issues were observed for Second Board firms relative to Main Board firms. The findings do not appear to suggest that the auditor reputation is a determinant of initial returns at listing. The findings are consistent with those documented by Shamsher and Annuar (1997) that investors are indifferent to the quality of audit service provided by Tier 1 and Non-Tier 1 audit firms. Universiti Putra Malaysia Press 2001-09 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/3324/1/Auditor_Change_During_Listings_Effect_on_IPO_Premiums.pdf Ramadilli Mohd, Shamsher Mohamad and Ahmed, Huson Joher Ali (2001) Auditor change during listings: effect on IPO premiums. Pertanika Journal of Social Sciences & Humanities, 9 (2). pp. 113-121. ISSN 0128-7702; ESSN: 2231-8534 http://www.pertanika.upm.edu.my/view_archives.php?journal=JSSH-9-2-9
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description The study examined the relationship between choice of quality differentiated audit firm and initial return at listing. It is conjectured that the superior audit quality of Tier 1 audit firms helps to reduce ex-ante uncertainty and consequently reduces the initial premiums at listing. The findings show that there is an inclination for listed firms to engage Tier 1 audit firms, and no significant difference in the initial returns of IPOs firms audited by either Tier 1 or Non-Tier 1 audit firms were observed. However, higher significant initial returns for new issues were observed for Second Board firms relative to Main Board firms. The findings do not appear to suggest that the auditor reputation is a determinant of initial returns at listing. The findings are consistent with those documented by Shamsher and Annuar (1997) that investors are indifferent to the quality of audit service provided by Tier 1 and Non-Tier 1 audit firms.
format Article
author Ramadilli Mohd, Shamsher Mohamad
Ahmed, Huson Joher Ali
spellingShingle Ramadilli Mohd, Shamsher Mohamad
Ahmed, Huson Joher Ali
Auditor change during listings: effect on IPO premiums
author_facet Ramadilli Mohd, Shamsher Mohamad
Ahmed, Huson Joher Ali
author_sort Ramadilli Mohd, Shamsher Mohamad
title Auditor change during listings: effect on IPO premiums
title_short Auditor change during listings: effect on IPO premiums
title_full Auditor change during listings: effect on IPO premiums
title_fullStr Auditor change during listings: effect on IPO premiums
title_full_unstemmed Auditor change during listings: effect on IPO premiums
title_sort auditor change during listings: effect on ipo premiums
publisher Universiti Putra Malaysia Press
publishDate 2001
url http://psasir.upm.edu.my/id/eprint/3324/1/Auditor_Change_During_Listings_Effect_on_IPO_Premiums.pdf
http://psasir.upm.edu.my/id/eprint/3324/
http://www.pertanika.upm.edu.my/view_archives.php?journal=JSSH-9-2-9
_version_ 1643822579005259776
score 13.211869

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