Financial centers, legal origins, and choice of auditors: evidence from emerging markets

Dissertant

Fakir, Nuaymah

Thesis advisor

Faruq, Umar

University

Al Akhawayn University

Faculty

The School of Business Administration

University Country

Morocco

Degree

Master

Degree Date

2011

English Abstract

Manuscript Type: Empirical Research Question/Issue: Do firms headquartered in the financial center of a country have different preferences for one of the big-four auditors than firms headquartered elsewhere?.

Research Findings/Insights: We find no significant coefficient for both firms across common or civil law countries and thus firms act similarly in appointing one of the big four auditors.

In this case, the complementary effect holds in common law countries to answer the strong demand of their investors and that the substitution effect holds in countries with weak legal protection to mitigate agency conflicts.

However, our studies show that a significant difference in the choice of auditors for firms across common and civil law countries only holds for firms headquartered in the non-financial centers.

Theoretical/Academic Implications: One of the implications of our research is that it introduces a new factor –location of firm’s headquarter- as an important determinant of firm’s decision to choose big four auditor.

Our results also show that legal traditions are not important for firms headquartered in financial centers

Main Subjects

Business Administration

No. of Pages

32

Table of Contents

• APA
• MLA
• AMA

Language

English

Data Type

Arab Theses

Record ID

BIM-627774