Can Big Auditors Increase Enterprises Value? ——An Empirical Study Based on A Stock Market in China

Abstract-Based on the large sample data of 2009-2011 A-shares market, the paper tests whether the current capital market in China has cultivated higher quality auditors by studying whether big auditors can increase clients ’ market value. The results were analyzed by multiple regression analyses. It shows that audit firms, whether the international Big 4 auditors or national leading ones, pose no significant positive influence on enterprises value, which further indicates that there is still room to improve the capital market environment in China. Keywords-auditor;audit quality; initial discount;enterprise value. .LITERATURE REVIEW High quality auditors can reduce agent cost and promote enterprises ’ value by delivering true accounting information to market, that’s why auditors are employed. DeAngel