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Government Quality, the Adoption of IFRS and Auditor Choice: A Cross Country Analysis

dc.contributor.authorHouqe, Muhammad Nurul
dc.contributor.authorvan Zijl, Tony
dc.contributor.authorMonem, Reza
dc.date.accessioned2012-05-08T22:07:39Z
dc.date.accessioned2022-07-05T02:35:11Z
dc.date.available2012-05-08T22:07:39Z
dc.date.available2022-07-05T02:35:11Z
dc.date.copyright2011
dc.date.issued2011
dc.description.abstractWe examine the association between country-level government quality and firms’ choice of external auditors. We use a firm’s choice of a Big 4 auditor as a proxy for the demand for high-quality financial reporting. Using a cross-sectional sample of 142,193 firm-year observations from 46 countries over 1998-2007, we show that government quality of a country has a significant positive effect on the likelihood of choosing Big 4 auditors by firms in that country. We also show that firms in countries with strong governments that have adopted IFRS are more likely to choose Big 4 than non-Big 4 auditors. To our knowledge, this is the first study of its kind to provide direct evidence on the role of government quality in firms’ choice of external auditors. The results provide insights for policy makers on the importance of government quality toward improving financial reporting quality in a country.en_NZ
dc.formatpdfen_NZ
dc.identifier.urihttps://ir.wgtn.ac.nz/handle/123456789/18673
dc.language.isoen_NZ
dc.publisherTe Herenga Waka—Victoria University of Wellingtonen_NZ
dc.relation.ispartofseriesWorking Paperen_NZ
dc.relation.ispartofseriesNo. 78en_NZ
dc.relation.urihttp://www.victoria.ac.nz/sacl/cagtr/working-papers/WP78.pdf
dc.subjectgovernment qualityen_NZ
dc.subjectBig 4en_NZ
dc.subjectIFRSen_NZ
dc.subjectauditor qualityen_NZ
dc.subjectinvestor protectionen_NZ
dc.titleGovernment Quality, the Adoption of IFRS and Auditor Choice: A Cross Country Analysisen_NZ
dc.typeTexten_NZ
vuwschema.contributor.unitCentre for Accounting, Governance and Taxation Researchen_NZ
vuwschema.contributor.unitSchool of Accounting and Commercial Lawen_NZ
vuwschema.subject.anzsrcfor150199 Accounting, Auditing and Accountability not elsewhere classifieden_NZ
vuwschema.subject.anzsrcforV2350199 Accounting, auditing and accountability not elsewhere classifieden_NZ
vuwschema.type.vuwWorking or Occasional Paperen_NZ

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