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overlooked applicants. Candidates who are less likely to be invited for an interview (e.g., non-U.S. citizens) are hired after … having the opportunity to interview through the auction. Among hires, these candidates are more represented among auction …
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We examine whether supply shocks in the audit partner labor market induce clients to switch audit partners. We argue that audit partners in their early careers (i.e., junior partners) charge low audit fees to attract clients, which induces client firms to switch from senior partners to junior...
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