Firm-Level Characteristics and Audit Quality

Khaled Salmen, Aljaaidi; Shamhrir, Bin Abidin; Abdul Wahed, A. Hashid

مجلة إضافات إقتصادية
Volume 2, Numéro 1, Pages 338-360
2018-04-01

Firm-level Characteristics And Audit Quality

Authors : Khaled Salmen Aljaaidi . Shamhrir Bin Abidin . Abdul Wahed A. Hashid .

Abstract

The aim of this study is to theoretically and empirically provide evidence on the association between agency cost variables (firm size, leverage, firm performance and short-term accruals) and the auditor choice decision of 72 non-financial listed companies in the Qatari Stock Exchange during 2007-2010. This study identifies two audit firm types: (1) Big-4 and (2) Non-Big-4 auditors. Using pooled logit regression, this study finds that the likelihood that a name-brand auditor is chosen is associated with firm size and short-term accruals. The outcomes of this study have significant implications to the auditor independent issues in the setting of Qatar.