Translated Titles

Does Auditor Industry Specialization Matter to Book-tax Differences?




廖益興(Yi-Hsing Liao);高儷華(Li-Hua Kao);單騰笙(Teng-Sheng Sang)

Key Words

產業專家會計師 ; 財稅差異 ; 盈餘品質 ; 傾向分數配對法 ; auditor's industry expertise ; book-tax differences ; earnings quality ; propensity score matching method



Volume or Term/Year and Month of Publication

46卷1期(2018 / 03 / 01)

Page #

125 - 178

Content Language


Chinese Abstract


English Abstract

This study aims to examine whether the auditor’s industry expertise reduces book-tax differences (hereafter BTD) directly through its information and governance roles and indirectly through its effect in enhancing earnings quality. To alleviate the concern regarding the self-selection bias caused by the non-random sample of BTD and the potential endogeneity issue related to auditor choice, we adopt the Heckman two-stage procedure and the twostage least squares with instrumental variables approach to deal with these issues. Empirical results show that smaller absolute BTD are associated with higher auditor industry expertise. Moreover, using two stage estimation methods to investigate the indirect effect of auditor industry expertise on BTD through earnings quality, we find that discretionary accruals is smaller for clients of auditor industry specialists than for clients of auditor industry non-specialists and that lower discretionary accruals in turn reduces the magnitude of BTD. Even when we substitute the propensity score matching method for the two stage least squares approach to correct for endogeneity bias, the results remain qualitatively similar.

Topic Category 社會科學 > 經濟學
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