ترجمه مقاله نقش ضروری ارتباطات 6G با چشم انداز صنعت 4.0
- مبلغ: ۸۶,۰۰۰ تومان
ترجمه مقاله پایداری توسعه شهری، تعدیل ساختار صنعتی و کارایی کاربری زمین
- مبلغ: ۹۱,۰۰۰ تومان
Abstract
Purpose — the purpose of this paper is to investigate how companies’ reputation affects their selection of auditors. Design/methodology/approach — this paper measures company reputation using the reputation scores from Fortune’s “America’s Most Admired Companies” list. Multivariate analysis is performed to examine the impact of company reputation on public companies’ auditor choice. Robustness checks include conducting Heckman procedures and instrumental-variable two-stage least square regressions to control for self-selection bias and using alternative measures to proxy for company reputation and auditor industry expertise. Findings — this paper finds that companies with higher reputations are more likely to hire industry-specialist auditors than their counterparts. The results suggest that due to reputation concerns, high-reputation companies have strong incentives to maintain and signal their financial reporting quality, which in turn increase their demand for audit quality. Practical Implication — this paper suggests that company reputation constitutes an important determinant of auditor selection, and therefore has both policy and practical implications for the demand of audit services. The study provides policy-makers and practitioners with insights into critical factors influencing companies’ complex decision process of auditor selection. Originality/Value — the findings of this study on the empirical link between company reputation and auditor choice contribute to the auditing literature by enhancing the understanding of the effects of different company-level characteristics in financial reporting and audit planning process. This study also adds to the growing literature on the influence of company reputation on corporate behavior by documenting the important role that company reputation plays in the managerial decision making process.
CONCLUSION
Although the literature on auditor choice is well developed, the association between company reputation and auditor choice is less established. This study examines how a unique company-level characteristic, company reputation, affects the selection of auditors. To measure company reputation, we utilize the company reputation scores from