Using a large sample of firms that report under mandatory IFRS from 51 countries, this study examines the association between conditional conservatism, institutional quality, and Big 4 audits. We hypothesize and find that the degree of conditional conservatism is higher in countries with better...

In this study, we explore the influence of board characteristics and ownership structure on auditor choice decisions in less strictly legal environments, like Egypt. Using a large sample of 899 firm-year observations for the period of 2011 to 2019, we employed logistic and probit regressions. We...

This paper empirically investigates the effect of the extended audit reporting (EAR) adoption on firms’ cost of borrowing. Employing an extensive sample of UK firms over an 8-year period in which we cover pre- and post-significant structural changes in the audit market, our findings are...

Prior research suggests that the presence of high quality auditors (i.e. proxied by audit firm characteristics) constrains accrual-based earnings management, but it inadvertently leads to higher real activities manipulation. We investigate whether such trade-off exists between accrual-based and...

PurposeAlthough a number of studies suggest that big audit firms provide higher audit quality in strict legal environments, empirical evidence remains inconclusive. Since little is known about the effect of auditor type on audit quality in less strictly legal environments, this study aims to...

Purpose – The aim of this research is to investigate Egyptian auditors ethical reasoning, to understand whether auditors' ethical reasoning is influenced by audit firm size or/and auditor position.Design/methodology/approach – This paper draws on 178 questionnaires that include six different...