Ownership concentration, choice of auditors, and firm performance : evidence from the Mena Region

Dissertant

al-Qasimi, Yusuf

Thesis advisor

Faruq, Umar

University

Al Akhawayn University

Faculty

The School of Business Administration

University Country

Morocco

Degree

Master

Degree Date

2010

English Abstract

How does ownership concentration affect firm performance in emerging markets? On one hand, concentrated ownership leads to higher agency problems, and on the other hand, it minimizes agency problems by removing the free-rider problem.

Using a large dataset of ownership concentration and firm performance from the MENA region during the time period between 2004 and 2008, we find that ownership concentration, as itself, may not have a significant impact on firm performance.

It is, rather, the way the concentrated firms govern themselves that determines their performance.

We argue that firms are aware of the agency problems that result from ownership concentration.

Therefore, they try to send some credible signals, for example the appointment of big-four auditors, to the markets.

Appointment of big-four auditors signals to the market that the information being disclosed by firm is reliable and thus reduces some of the agency problems.

Our results show a significantly positive relationship between ownership concentration and the choice of auditor.

We also show that a positive relationship between ownership concentration and firm performance becomes insignificant as we control for the choice of auditor in our analysis.

Our results document a significantly positive relationship between the appointment of one of a big-four auditor and the firm performance.

Main Subjects

Business Administration
Financial and Accounting Sciences

Topics

No. of Pages

25

Table of Contents

Table of contents.

Abstract.

Chapter One : Introduction.

Chapter Two : Motivation and background.

Chapter Three : Data.

Chapter Four : Methodology.

Chapter Five : Conclusion.

References.

American Psychological Association (APA)

al-Qasimi, Yusuf. (2010). Ownership concentration, choice of auditors, and firm performance : evidence from the Mena Region. (Master's theses Theses and Dissertations Master). Al Akhawayn University, Morocco
https://search.emarefa.net/detail/BIM-627425

Modern Language Association (MLA)

al-Qasimi, Yusuf. Ownership concentration, choice of auditors, and firm performance : evidence from the Mena Region. (Master's theses Theses and Dissertations Master). Al Akhawayn University. (2010).
https://search.emarefa.net/detail/BIM-627425

American Medical Association (AMA)

al-Qasimi, Yusuf. (2010). Ownership concentration, choice of auditors, and firm performance : evidence from the Mena Region. (Master's theses Theses and Dissertations Master). Al Akhawayn University, Morocco
https://search.emarefa.net/detail/BIM-627425

Language

English

Data Type

Arab Theses

Record ID

BIM-627425