Institutional Ownership and the Selection of Industry Specialist Auditors
AbstractThis study provides evidence linking corporate governance mechanisms to the choice of auditor, namely industry specialists. Given that institutional investors are likely to prefer higher quality financial reports to lower quality reports, we theorize that institutional investors will influence managers of companies in which they invest to improve reporting quality by using higher quality, industry specialist auditors. Our findings indicate that firms having relatively greater levels of institutional ownership tend to employ industry specialist audit firms. The results of this study contribute to an understanding of an important facet of corporate governance, the selection of a high quality audit firm. Copyright 2003 by Kluwer Academic Publishers
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Bibliographic InfoArticle provided by Springer in its journal Review of Quantitative Finance and Accounting.
Volume (Year): 21 (2003)
Issue (Month): 1 (July)
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Web page: http://springerlink.metapress.com/link.asp?id=102990
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- Mehdi Nekhili & Wafa Masmoudi & Dhikra Chebbi Nehkili, 2009. "Choix de l’auditeur externe, honoraires d’audit et gouvernance des entreprises françaises," Working Papers FARGO 1090501, Université de Bourgogne - Crego EA 7317/Fargo (Research center in Finance,organizational ARchitecture and GOvernance).
- Azhaar Lajmi & Marjène Gana, 2011. "Structure de Propriété et Qualité de l'Audit Externe : Cas des Entreprises Belges Cotées," Post-Print hal-00650542, HAL.
- Ismail Adelopo & Kumba Jallow & Peter Scott, 2012. "Multiple large ownership structure, audit committee activity and audit fees: Evidence from the UK," Journal of Applied Accounting Research, Emerald Group Publishing, vol. 13(2), pages 100-121.
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