Agency problems, transparency, and choice of auditors : evidence from the Mena region

Dissertant

Tabine, Sonia

Thesis advisor

Faruq, Umar

University

Al Akhawayn University

Faculty

The School of Business Administration

University Country

Morocco

Degree

Master

Degree Date

2010

English Abstract

This paper analyzes the auditor choices for a large sample of firms from the MENA region, i.e. Morocco, Egypt, Saudi Arabia, United Arab Emirates, Jordan, Kuwait, and Bahrain.

We find that the choice to hire a big-four auditor relates to agency and transparency problems faced by a firm. Our results show that higher agency problems lead to having big-four auditor.

For example, lower payout ratios and higher ownership concentration leads firms to higher big-four auditors. This may be an attempt by firms to lower some of the agency problems faced by them.

Similarly, we also show that transparency variables, i.e.

operational complexity and informational complexity, also induce firms to higher big-four auditors.

Information of less transparent firms are hard to decipher and thus induce firms to have big-four auditors.

Main Subjects

Financial and Accounting Sciences

Topics

• Accounting
• Auditing
• Business enterprises
• Middle East

No. of Pages

29

Table of Contents

• APA
• MLA
• AMA

Language

English

Data Type

Arab Theses

Record ID

BIM-629433