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Determining factors for audit opinion in private family and non-family firms. Evidence from Spain

Author

Listed:
  • Santiago Lago-Peñas
  • Mercedes Mareque Álvarez-Santullano
  • Elena Rivo-López
  • Mónica Villanueva-Villar

Abstract

This paper analyzes the determining factors for audit opinion in private firms, and whether such factors differ between family and non-family firms. With a sample of 9,873 Spanish firms for the period 2011-2015, the empirical results suggest that auditor tenure and ROA raise the probability of receiving a favorable opinion; and that losses during the previous year, high financial leverage, and hiring one of the so-called “Big 4” auditing firms increase the probability of receiving an unfavorable opinion. Furthermore, we provide evidence that the size of such effects differs between family and non-family firms.

Suggested Citation

  • Santiago Lago-Peñas & Mercedes Mareque Álvarez-Santullano & Elena Rivo-López & Mónica Villanueva-Villar, 2017. "Determining factors for audit opinion in private family and non-family firms. Evidence from Spain," Working Papers. Collection C: Family business 1701, Universidade de Vigo, GEN - Governance and Economics research Network.
  • Handle: RePEc:gov:wpfami:1701
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    File URL: http://infogen.webs.uvigo.es/WPC/WP1701.pdf
    File Function: First version, 2017
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Auditing; Family Business; Agency Theory; Big 4; Audit Opinion.;

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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