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The Determinants of Auditor Selection in Terms of Firm and Ipo Characteristics: Evidence From Bist

The Journal of Accounting and Management

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Title The Determinants of Auditor Selection in Terms of Firm and Ipo Characteristics: Evidence From Bist
 
Creator Aslan, Ertan; Department of Business Administration, Accounting and Finance, Faculty of Business, Dokuz Eylul University
Aslanertik, Banu Esra; Department of Business Administration, Accounting and Finance, Faculty of Business, Dokuz Eylul University
 
Subject External Audit; Auditor Selection; Firm Characteristics; Initial Public Offering
 
Description This study mainly aims to measure the impact of firm characteristics and ipo characteristics on external auditor selection, by examining a sample from BIST firms over the period 2009 to 2013. It was investigated that the firm age, firm size, foreign ownership, international diversification, market to book and total asset turnover are positively associated with auditor selection in terms of Big 4-Non Big 4 diversification. The empirical evidence contradicts the hypothesis that sales growth, loss, ROA, leverage and liquidity have an impact on external auditor selection. Also it was determined that the firms which are in the corporate governance index prefer work with Big 4, but watchlist companies don't. The IPO characteristics such as; ipo age, issue size, prestigious underwriter are positively associated with auditor selection (Big 4/Non-Big 4). The results of this research indicate that there is a high correlation between firm age and ipo age. In addition to all, our results suggest that some of firm characteristics and ipo characteristics serve as a signaling device that enhances auditor selection.
 
Publisher The Journal of Accounting and Management
 
Contributor —
 
Date 2017-06-08
 
Type Peer-reviewed Article
 
Format application/pdf
 
Identifier http://journals.univ-danubius.ro/index.php/jam/article/view/4001
 
Source The Journal of Accounting and Management; Vol 7, No 1 (2017): JAM
 
Language en
 
Rights The author fully assumes the content originality and the holograph signature makes him responsible in case of trial.