The Economic Value Added by Specialist Auditors- Hypothesis Sample and Data Results

Prior literature has conjectured that auditor industry specialization is animportant dimension of audit quality. This book addresses the economicbenefits that companies may achieve by employing auditors with industryexpertise. It examines the link between the employment of industry specialistauditors and the degree of information asymmetry and the cost of debt of aclient company. More specifically the analysis should answer the followingquestions: Is there a relation between the employment of an industryspecialist auditor and the level of information asymmetry of clientcompanies? Is there a relation between the employment of an industryspecialist auditor and the cost of debt of client companies? Is the economicimpact of the employment of an industry specialist auditor on the cost ofdebt larger for financially troubled client companies? The book is directedtowards researchers in business regulators auditors credit agencies andinvestors.