In this paper, we study a comprehensive sample of Andersen clients and investigate whether the deterioration of Andersen's reputation after its criminal indictment on March 14, 2002 adversely impacted the perceived credibility of their audit quality. Since these reputational concerns are more of...

In this paper, we study a broad sample of Andersen clients and investigate whether the decline in Andersen's reputation, due to its criminal indictment on March 14, 2002, adversely impacted the market's perception of its audit quality. Because these reputational concerns are more of an issue if...