Selection bias in audit firm tenure research

• Published in: Review of accounting studies Vol. 29; no. 4; pp. 3085 - 3129
• Main Authors: Zhou, Ying, Weber, David P., Wen, Ce
• Format: Journal Article
• Language: English
• Published: New York Springer US 01.12.2024; Springer Nature B.V
• Subjects: Accounting firms; Accounting/Auditing; Audit quality; Business and Management; Corporate Finance; Public Finance; Tenure; M48; Auditor tenure; Audit quality; Selection bias; Fixed effects; M42; Auditor turnover; C18

Whether audit firm tenure affects audit quality is a question of longstanding regulatory and scholarly interest. While this question centers on how audit quality changes over time within client-audit firm relationships (longitudinal variation), prior studies tend to instead compare audit quality acr...