Takeover premiums and the perception of auditor independence and reputation

Bugeja, M

Takeover premiums and the perception of auditor independence and reputation

Bugeja, M

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Publisher:: AFAANZ
Publication Type:: Conference Proceeding
Citation:: 2009 AFAANZ Conference, 2009, pp. 1 - 41
Issue Date:: 2009-01

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Field	Value	Language
dc.contributor.author	Bugeja, M https://orcid.org/0000-0002-1941-5092	en_US
dc.contributor.editor	Faff, R	en_US
dc.date	2009-07-05	en_US
dc.date.issued	2009-01	en_US
dc.identifier.citation	2009 AFAANZ Conference, 2009, pp. 1 - 41	en_US
dc.identifier.issn	1328-780X	en_US
dc.identifier.uri	http://hdl.handle.net/10453/12721
dc.description.abstract	This study investigates if there is a positive association between takeover premiums and the bidders perception of target firm auditor reputation and independence. Using auditor size as a proxy for auditor reputation, the results indicate that target shareholders receive a higher takeover premium when a Big 4 auditor audits the target firm in the year prior to the takeover announcement. This result is only significant however in the period prior to the highly publicised audit failures. The impact of perceived auditor independence on takeover premiums is studied using the levels and size of non-audit service (NAS) fees provided by the target firm auditor. Using three proxies for auditor independence, the results do not show an association between perceived auditor independence and takeover premiums. This finding is robust to partitioning the sample by auditor size, takeover hostility and splitting the sample into takeovers pre- and post- the corporate scandals that occurred in 2002.	en_US
dc.publisher	AFAANZ	en_US
dc.relation.ispartof	2009 AFAANZ Conference	en_US
dc.relation.ispartof	Accounting and Finance Association of Australia and New Zealand Conference	en_US
dc.title	Takeover premiums and the perception of auditor independence and reputation	en_US
dc.type	Conference Proceeding
utslib.location	Australia	en_US
utslib.location.activity	Adelaide, Australia	en_US
utslib.for	150102 Auditing and Accountability	en_US
dc.location.activity	Adelaide, Australia	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Accounting Discipline
utslib.copyright.status	open_access
pubs.consider-herdc	false	en_US
pubs.place-of-publication	Australia	en_US
pubs.start-date	2009-07-05	en_US

Abstract:

This study investigates if there is a positive association between takeover premiums and the bidders perception of target firm auditor reputation and independence. Using auditor size as a proxy for auditor reputation, the results indicate that target shareholders receive a higher takeover premium when a Big 4 auditor audits the target firm in the year prior to the takeover announcement. This result is only significant however in the period prior to the highly publicised audit failures. The impact of perceived auditor independence on takeover premiums is studied using the levels and size of non-audit service (NAS) fees provided by the target firm auditor. Using three proxies for auditor independence, the results do not show an association between perceived auditor independence and takeover premiums. This finding is robust to partitioning the sample by auditor size, takeover hostility and splitting the sample into takeovers pre- and post- the corporate scandals that occurred in 2002.

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http://hdl.handle.net/10453/12721