Board ethics and auditor choice - International evidence2010 AFAANZ conference
Date of this Version7-4-2010
Document TypeConference Paper
AbstractThis study examines whether firms' auditor choice relates to Board ethics for forty-six countries around the globe. Using a large sample of firms (132,853 firm year observations) and controlling for a number of firm- and couutry-level factors, we find that firms in countries where "high board ethical values" prevail are more likely to hire a Big 4 auditor. We also document that the relation between board ethical values and auditor choice is mitigated by the firm's board size. These results establish an indirect link between board ethics and financial reporting quality through the firm's choice of auditor.
Citation InformationMuhammad Houqe, Tony van Zijl, Keitha Dunstan and Wares Karim. "Board ethics and auditor choice - International evidence" 2010 AFAANZ conference (2010)
Available at: http://works.bepress.com/keitha_dunstan/2/