MBA-IB Research Seminar will be held as follows.
Date: July 8, 2023
Time: 15:30 – 17:00
Place: University of Tsukuba, Tokyo campus, Room 320
Eligible participants: Faculty members, graduate students, and individuals with equivalent knowledge.
Audit Personnel Turnover, Auditor Labor Market, and Audit Quality
This paper examines audit offices’ human capital investment in response to reputation loss and the resulting effect on audit quality. We document that after client restatement announcements, audit offices attempt to acquire human capital and talent by posting more audit-related job positions. The increase in job postings is concentrated among more senior and experienced positions, and follows restatements with negative market reactions. It is not driven by replacement hiring due to auditor departures and is associated with more auditors joining the office. We further find that these human capital investments reduce the contagion effect of low-quality audits and the losses in local market share, supporting improvements in actual audit quality and auditor reputation.
Dr. Wu joined the Fudan University in 2019. He received his B.A. in international economics from Shanghai Jiaotong University and his Ph.D. in Economics from University of Pittsburgh. His has published research in the several leading journals include The Accounting Review, Journal of Financial and Quantitative Analysis, Journal of Corporate Finance, and Journal of Banking & Finance, among others.
With Eli Bartov and Agnes Cheng, Overbidding in Mergers and Acquisitions: An Accounting Perspective, The Accounting Review, 96(2), 55-79.
With Po-Hsuan Hsu, Yiqing Lu and Yuhai Xuan, Director Job Security and Corporate Innovation, Forthcoming, Journal of Financial and Quantitative Analysis.
With Po-Hsuan Hsu, Kai Li and Yunan Liu, Consolidating Product Lines via Mergers and Acquisitions: Evidence from the USPTO Trademark Data, Forthcoming, Journal of Financial and Quantitative Analysis.
