PlumX Metrics
Embed PlumX Metrics

Did corporate governance compliance have an impact on auditor selection and quality? Evidence from FTSE 350

International Journal of Disclosure and Governance, ISSN: 1746-6539, Vol: 17, Issue: 2-3, Page: 51-60
2020
  • 24
    Citations
  • 0
    Usage
  • 157
    Captures
  • 0
    Mentions
  • 0
    Social Media
Metric Options:   Counts1 Year3 Year

Metrics Details

  • Citations
    24
    • Citation Indexes
      24
  • Captures
    157

Article Description

This paper examines the possible effects of corporate governance (GC) on audit quality (AQ) among the FTSE 350 companies. Using a sample of 180 companies from 2012 to 2017 (i.e. 1080 firm-year observations) a binary logistic model has been employed to investigate the CG-AQ nexus. This analysis was supported by conducting a probit logistic model as a sensitivity analysis. Our findings are associative of a heterogeneous impact of CG on AQ post the implementation of the 2012 CG reforms in the UK. For example, although institutional ownership and management ownership can predict AQ, board independence, non-executive directors and audit committee are not attributed to AQ in the UK. This implies that corporate compliance with good CG practices has a limited impact on the decision to select a Big4 auditor in the UK. Despite the limitations of our study, we hope it can motivate further investigations in this area.

Provide Feedback

Have ideas for a new metric? Would you like to see something else here?Let us know