Early-tenure CEOs and Auditor Locality
경영학연구 | 한국경영학회 | 35 pages| 2024.07.01| 파일형태 :
조회 168 다운로드 0
자료요약
Recent literature suggests that locals have an informational advantage over nonlocals (Coval and Moskowitz 2001; Ivkovic and Weisbenner 2005; Bae et al. 2008; Lim and Nguyen 2021). In line with this, local auditors, compared to non-local auditors, provide higher-quality auditing services (Choi et al. 2012). Previous studies have also found that the CEO’s personal traits influence the firm’s decisions and performance (Hambrick 2007). For example, earnings overstatement is more pronounced in the early years than in the later years of CEOs" service due to their career concerns (Ali and Zhang 2015). Building on this literature, we investigate the early-tenure CEO’s effect on the firm’s auditor selection, especially auditor locality. Our empirical analyses reveal that firms are less likely to choose local auditors in the early years of a CEO’s service compared to the later years. While exploring the underlying reasons, we find that firms with early-tenure CEOs are more likely to have lower-quality financial statements and a higher probability of financial fraud than firms led by CEOs with later years of service. We contribute to the auditing literature by highlighting how CEOs" individual traits affect auditor selection.
목차
Ⅰ. Introduction
Ⅱ. Literature review and hypothesis development
Ⅲ. Research design
Ⅳ. Data and sample description
Ⅴ. Main results
Ⅵ. Additional tests
Ⅶ. Robustness checks
Ⅷ. Conclusion
References
#CEO career concerns#CEO tenure#Early-tenure CEOs#Local auditors
저작권 안내 및 사용범위와 규정
  • 위 정보 및 게시물 내용의 불법적 이용, 무단 전재, 배포는 법적으로 "금지되어" 있습니다.
  • 저작권 침해, 명예훼손 등 분쟁요소 발견시 하단의 “고객센터”를 이용해주세요.
  • 기타는 저작물의 등록자가 정하는 사용 범위와 규정에 준합니다.
  • 위 자료는 한국경영학회 가 저작권을 관리하고 있습니다.
자료 제공처