What affects auditor choice in emerging markets? New evidence on the role of cultural distance

IF 2.8 3区 管理学 Q2 BUSINESS, FINANCE
M. Acar, U. Şendurur
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引用次数: 0

Abstract

Purpose This paper aims to examine whether the cultural distance between an international audit firm and target audit clients in emerging countries is associated with auditor choice decisions. Design/methodology/approach Based on a sample of 104,699 firm-year observations from 20 countries over 2009–2020, logit regression analysis is used to investigate the research questions. Findings The authors find strong evidence that cultural distance affects the auditor selection decision. The results suggest Big N auditors are more likely to be chosen by target audit clients in emerging countries with less cultural distance. In other words, target audit clients in emerging countries prefer to choose international audit firms whose cultural characteristics are similar. Moreover, results from two-stage least squares regression further suggest that the observed effect of cultural distance on auditor choice is unlikely to be driven by potential endogeneity. Research limitations/implications The auditor choice is limited to companies hiring Big N auditors; the authors exclude any switches to non-Big N auditors or switches between Big N auditors. The study also suffers from the concerns about methodological and conceptual criticism that most studies about national culture have to deal with. Finally, through this paper, the authors carry out the auditor selection process from the target audit clients’ side; the authors do not discuss the supply side of the process. Originality/value The authors contribute to the audit choice literature by providing evidence that the cultural distance between the countries of audit firms and target audit clients plays a role in the auditor choice decision. The study complements the prior auditor choice literature, focusing primarily on Western economies, by structuring the sample scope to emerging market economies.
是什么影响了新兴市场审计师的选择?关于文化距离作用的新证据
目的本文旨在检验国际审计公司与新兴国家目标审计客户之间的文化距离是否与审计师的选择决策有关。设计/方法论/方法基于2009-2010年20个国家104699个公司年度的观察样本,使用logit回归分析来调查研究问题。研究结果作者发现有强有力的证据表明,文化距离会影响审计师的选择决策。研究结果表明,N大会计师更有可能被文化距离较小的新兴国家的目标审计客户选中。换句话说,新兴国家的目标审计客户更喜欢选择文化特征相似的国际审计公司。此外,两阶段最小二乘回归的结果进一步表明,观察到的文化距离对审计师选择的影响不太可能是由潜在的内生性驱动的。研究局限性/含义审计师的选择仅限于聘请N大审计师的公司;作者排除了向非大N审计师的任何转换或在大N审计师之间的转换。该研究还受到了对方法论和概念批评的担忧,而大多数关于民族文化的研究都必须处理这些问题。最后,通过本文,作者从审计目标客户的角度进行了审计师的选择过程;作者没有讨论这一过程的供应方。原创性/价值作者通过提供证据证明审计公司所在国和目标审计客户之间的文化距离在审计师的选择决策中发挥了作用,为审计选择文献做出了贡献。该研究通过将样本范围结构化为新兴市场经济体,补充了先前审计师选择文献,主要关注西方经济体。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
5.40
自引率
13.80%
发文量
45
期刊介绍: The key areas addressed are: ■Audit and Assurance (financial and non-financial) ■Financial and Managerial Reporting ■Governance, controls, risks and ethics ■Organizational issues including firm cultures, performance and development In addition, the evaluation of changes occurring in the auditing profession, as well as the broader fields of accounting and assurance, are also explored. Debates concerning organizational performance and professional competence are also covered.
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