Angry Hats, Audit Quality

I haven't given a language update for some time now; I am still studying Chinese like a mad-hatter, or at least trying to. For those interested (assumedly nobody), I am currently doing a trial translation period for a professor of accounting at TamKang University. She has articles which are to be submitted to peer-review journals, and needs them to be translated from the original text, Chinese, into the target text, English. It is very difficult and slow-going at the moment, but also quite fun, and possibly something I would like to do, like DO do. Here is the Abstract: (I am not sure if by posting this I am violating privacy rights?? I hope not).


Audit Quality and Information Asymmetry
Abstract

This study aims to investigate the relationship between audit quality and information asymmetry. An increase in audit quality, the proxy variable representing information asymmetry, is said to correspond with a decrease in cost of capital. Differing from previous research, this paper uses probability of information-based trading (PIN) to extricate the frequency of firms’ trading based on private information as a variable to measure degree of information asymmetry. Additionally, proxy variables are assigned to audit firm size, audit tenure, discretionary accruals, and audit market experts for calculating information asymmetry purposes. Based on empirical results, this paper expands on previous research by proving that, in Taiwan, using higher quality audits can be used to effectively decrease information asymmetry.

Keywords: Auditor quality, Information asymmetry, Probability of information-based trading (PIN).



审计品质与资讯不对称之关联性
摘要

本文旨在检视审计品质与资讯不对称之直接关联。过去文献多以审计品质作为资讯不对称风险的代理变数, 探讨审计品质对资金成本的经济影响， 间接推论高审计品质隐含低资讯不对称程度，能使企业资金成本下降。与过去文献不同，本文采用优势资讯交易机率撷取企业私有资讯交易的频率，据此直接衡量企业资讯不对称的程度；同时以会计师事务所规模，会计师查核任期，裁决性应计数与审计市场产业专家作为审计品质的代理变数，实证结果证实审计品质确实能降低企业的资讯不对称。本文补充了过去文献尚未连结的部分，并且提出台湾大型会计师事务所能有效降低资讯不对称，具有较高的审计品质之实证证据。

關鍵字: 審計品質、資訊不對稱、優勢資訊交易機率(PIN)