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Auditor choice and institutional investor characteristics after the Enron scandal in the French context

Author

Listed:
  • Jamel Azibi

    (GREG - CRC - Groupe de recherche en économie et en gestion - Centre de recherche en comptabilité - CNAM - Conservatoire National des Arts et Métiers [CNAM] - HESAM - HESAM Université - Communauté d'universités et d'établissements Hautes écoles Sorbonne Arts et métiers université)

  • Hubert Tondeur

    (GREG - CRC - Groupe de recherche en économie et en gestion - Centre de recherche en comptabilité - CNAM - Conservatoire National des Arts et Métiers [CNAM] - HESAM - HESAM Université - Communauté d'universités et d'établissements Hautes écoles Sorbonne Arts et métiers université)

  • Mohamed Tahar Rajhi

    (FSEGT Tunisia - FSEGT Tunisia)

Abstract

This study examines the association between the quality of audit and the characteristics of institutional investors, using French data. After the Enron scandal, the perception of the Big 4 by French institutional investors changed. Our first hypothesis focuses on the perception French institutional investors to appointment of the Big 4. Our second hypothesis deals with the perception of the foreign institutional investors to choose one of the Big 4 auditors due to the lack of investor protection in France and the failure of Enron. We tested our hypotheses on a sample of 144 companies listed on SBF 250, using Worldscope data over the period 2000-2007. Empirical results show a negative and statistically significant link between the choices of one of Big 4 auditor by French institutional investors after the Enron scandal, whereas there is a positive and statistically insignificant link between the foreign institutional investor and the Big 4 appointment after 2002.

Suggested Citation

  • Jamel Azibi & Hubert Tondeur & Mohamed Tahar Rajhi, 2010. "Auditor choice and institutional investor characteristics after the Enron scandal in the French context," Post-Print hal-00481076, HAL.
    • Handle: RePEc:hal:journl:hal-00481076
    Note: View the original document on HAL open archive server: https://hal.science/hal-00481076
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    References listed on IDEAS

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