Abstract

http://ssrn.com/abstract=1338200
 


 



Are Assurance Services Provided by Auditors on Initial Public Offerings Influenced by Market Conditions?


Paul A. Copley


James Madison University - School of Accounting

Edward B. Douthett Jr.


George Mason University

February 5, 2009

Contemporary Accounting Research, Vol. 26, No. 2, 2009

Abstract:     
The initial public offering (IPO) market is characterized by large, periodic swings in new issue volume, commonly referred to as hot and cold markets. We compare IPO assurance fees over these cycles controlling for factors that are potentially associated with hot IPO markets. We find that average assurance fees are lower during hot market periods and that fee coefficients associated with certain client- and IPO-specific attributes are lower during hot markets. Our results are consistent with the explanation that IPO assurance services are influenced by varying client demands to defer or accelerate the date of the new issue in order to capitalize on market conditions.

Keywords: Audit demand, initial public offering, audit fees, hot markets

JEL Classification: M40, M42, G12, G24

Accepted Paper Series





Not Available For Download

Date posted: February 5, 2009  

Suggested Citation

Copley, Paul A. and Douthett, Edward B., Are Assurance Services Provided by Auditors on Initial Public Offerings Influenced by Market Conditions? (February 5, 2009). Contemporary Accounting Research, Vol. 26, No. 2, 2009. Available at SSRN: http://ssrn.com/abstract=1338200

Contact Information

Paul A. Copley (Contact Author)
James Madison University - School of Accounting ( email )
MSC 0203
335 Showker Hall
Harrisonburg, VA 22807
United States
540-568-3081 (Phone)
Edward B. Douthett Jr.
George Mason University ( email )
Fairfax, VA
United States
703-993-4234 (Phone)
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