Ex-auditor executives and investment efficiency: evidence from Indonesia

IF 2.3 Q2 BUSINESS, FINANCE

Asian Review of Accounting Pub Date : 2022-09-20 DOI:10.1108/ara-01-2022-0015

Agnes Aurora Ngelo, I. Harymawan, M. Nasih

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引用次数: 2

Abstract

PurposeThis study aims to examine the relationship between the presence of ex-auditor chief executive officers (CEOs) and ex-auditor chief financial officers (CFOs) with the company's investment efficiency decisions.Design/methodology/approachThe authors use non-financial Indonesian listed firms, and the authors obtain 2,763 firm-year observations of ex-auditor CEOs and 2,708 firm-year observations of ex-auditor CFOs from 2010–2019.FindingsThe results show that ex-auditor CEOs tend to make efficient investment decisions, while ex-auditor CFOs do not. However, when a company has a CEO and a CFO who are both former auditors, there is a significantly stronger positive relationship with investment efficiency. These results indicate that working experience as an auditor can optimally facilitate the decision regarding investment level. Moreover, the results suggest that the CEO, as top management, has more influence in providing the company's final investment decisions, whereas the CFO plays a role in providing investment recommendations to the CEO. The results of this study are consistent with the use of alternative measurements and the robustness test of Coarsened Exact Matching (CEM).Practical implicationsThe results of this study can contribute as material for consideration by company management in selecting company organs with an auditor background to secure efficient investment.Originality/valueThis study specifically examines the experience, values, and particular characteristics of top management with an auditor background on the company's strategic decisions. This study is also based on the phenomenon that the number of ex-auditor CEOs and CFOs in Indonesia tends to increase every year.

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前审计师高管与投资效率:来自印尼的证据

本研究旨在探讨前审计师首席执行官(ceo)和前审计师首席财务官(cfo)的存在与公司投资效率决策之间的关系。设计/方法/方法作者使用非金融印尼上市公司，作者获得了2,763名前审计师首席执行官的公司年度观察结果和2,708名前审计师首席财务官的公司年度观察结果，从2010-2019年。结果表明，前审计师ceo倾向于做出有效的投资决策，而前审计师cfo则不倾向于做出有效的投资决策。然而，当一家公司的首席执行官和首席财务官都是前审计师时，投资效率与投资效率之间的正相关关系显著增强。这些结果表明，作为审计师的工作经验可以最优地促进投资水平的决策。此外，研究结果表明，CEO作为最高管理层在提供公司最终投资决策方面具有更大的影响力，而CFO则在向CEO提供投资建议方面发挥作用。本研究的结果与使用替代测量和粗化精确匹配(CEM)的稳健性测试是一致的。实际意义本研究结果可作为公司管理层在选择具有审计背景的公司机构以确保有效投资时的参考材料。原创性/价值本研究特别考察了具有审计师背景的最高管理层在公司战略决策方面的经验、价值观和特点。这项研究也是基于印度尼西亚前审计ceo和cfo的数量每年都在增加的现象。

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

Asian Review of Accounting BUSINESS, FINANCE-

CiteScore

3.20

自引率

25.00%

发文量

期刊介绍： Covering various fields of accounting, Asian Review of Accounting publishes research papers, commentary notes, review papers and practitioner oriented articles that address significant international issues as well as those that focus on Asia Pacific in particular.Coverage includes but is not limited to: -Financial accounting -Managerial accounting -Auditing -Taxation -Accounting information systems -Social and environmental accounting -Accounting education Perspectives or viewpoints arising from regional, national or international focus, a private or public sector information need, or a market-perspective or social and environmental perspective are greatly welcomed. Manuscripts that present viewpoints should address issues of wide interest among accounting scholars internationally and those in Asia Pacific in particular.