Firm-level characteristics and audit quality

الملخص EN

The aim of this study is to theoretically and empirically provide evidence on the association between agency cost variables (firm size, leverage, firm performance and short-term accruals) and the auditor choice decision of 72 non-financial listed companies in the Qatari Stock Exchange during 2007-2010.

This study identifies two audit firm types: (1) Big-4 and (2) Non-Big-4 auditors.

Using pooled logit regression, this study finds that the likelihood that a name-brand auditor is chosen is associated with firm size and short-term accruals.

The outcomes of this study have significant implications to the auditor independent issues in the setting of Qatar.