Monash University

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Reason: Under embargo until May 2019. After this date a copy can be supplied under Section 51(2) of the Australian Copyright Act 1968 by submitting a document delivery request through your library

Affiliated former audit partners on audit committees and cost of equity capital

posted on 2018-05-17, 02:08 authored by DHAYANI KIRUBAHARAN
Audit committees (ACs) provide an independent overview of the financial reporting process. Independence and accounting expertise are essential for an effective AC. Due to their firm-specific accounting expertise, former partners of the current auditors (AFAPs) become prime candidates for AC membership. However, their affiliation poses a threat to independence and there is regulatory restriction on hiring AFAPs into ACs. This thesis examines how investors perceive the presence of AFAPs on ACs by examining the association between their presence on ACs and the return investors demand for their investment. Contrary to regulatory belief, I find investors perceive AFAPs on ACs positively.


Campus location


Principal supervisor

Chen Chen

Additional supervisor 1

Sunyong Kim

Additional supervisor 2

Vic Naiker

Year of Award


Department, School or Centre



Doctor of Philosophy

Degree Type



Faculty of Business and Economics