Board ethics and auditor choice - International evidence

Muhammad Nurul Houqe, Tony van Zijl, Keitha Dunstan, A.K.M. Waresul Karim

Research output: Contribution to journalArticleResearchpeer-review


This study examines whether firms' auditor choice relates to Board ethics for forty-six countries around the globe. Using a large sample of firms (132,853 firm year
observations) and controlling for a number of firm- and country-level factors, we find that firms in countries where "high board ethical values" prevail are more likely to hire a Big 4 auditor. We also document that the relation between board ethical values and auditor choice is mitigated by the firm's board size. These results establish an indirect link between board ethics and financial reporting quality through the firm's choice of auditor.
Original languageEnglish
Pages (from-to)1-36
Number of pages36
JournalResearch in Accounting Regulation
Issue number1
Publication statusPublished - 2010
EventAccounting and Finance Association of Australia and New Zealand (AFAANZ) conference - Darwin, Darwin, Australia
Duration: 3 Jul 20115 Jul 2011


Dive into the research topics of 'Board ethics and auditor choice - International evidence'. Together they form a unique fingerprint.

Cite this