IDEAS home Printed from https://ideas.repec.org/a/taf/euract/v29y2020i4p693-721.html
   My bibliography  Save this article

The Effects of Auditor Social and Human Capital on Auditor Compensation: Evidence from the Italian Small Audit Firm Market

Author

Listed:
  • Pietro A. Bianchi
  • Nieves Carrera
  • Marco Trombetta

Abstract

This study examines whether social and human capital influence the compensation of individual auditors in the small audit firm market. We employ a sample of Italian auditors and use measures from the network and auditing literatures to capture their professional connections, representing social capital, and their industry expertise, representing human capital. Our findings show a positive and economically meaningful association between these individual attributes and auditor compensation. We run several tests to address potential endogeneity issues in our research design. Our results suggest that, in the small audit market, clients perceive as valuable those auditors with higher social and human capital, and as a result, are willing to pay a premium for these specific auditor attributes.

Suggested Citation

  • Pietro A. Bianchi & Nieves Carrera & Marco Trombetta, 2020. "The Effects of Auditor Social and Human Capital on Auditor Compensation: Evidence from the Italian Small Audit Firm Market," European Accounting Review, Taylor & Francis Journals, vol. 29(4), pages 693-721, July.
    • Handle: RePEc:taf:euract:v:29:y:2020:i:4:p:693-721
    DOI: 10.1080/09638180.2019.1647258
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09638180.2019.1647258
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09638180.2019.1647258?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Charl de Villiers & Matteo La Torre & Vida Botes, 2022. "Accounting and social capital: A review and reflections on future research opportunities," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(4), pages 4485-4521, December.
    2. Saleh F. A. Khatib & Hamid Ghazi H Sulimany & Mohammed Naif Alshareef & Mohd Noor Azli Ali Khan, 2024. "Catalysts of audit excellence: competitive advantage, intellectual capital and auditing quality," Quality & Quantity: International Journal of Methodology, Springer, vol. 58(5), pages 4915-4939, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:euract:v:29:y:2020:i:4:p:693-721. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/REAR20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.