Opinion-shopping: firm versus partner-level evidence
| Autor: | Simona Rusanescu, Elena de las Heras Cristóbal, Beatriz García Osma, Belén Gill-de-Albornoz Noguer |
|---|---|
| Rok vydání: | 2021 |
| Předmět: | |
| Zdroj: | Accounting and Business Research, 52(7), 773-814 |
| ISSN: | 2159-4260 0001-4788 |
| Popis: | Employing Lennox’s (2000) methodology on a uniquely long time series of Spanish companies’ data, we find evidence of successful audit opinion-shopping through the firm switching decision. However, in contrast to Chen et al. (2016) in the Chinese setting, we find no evidence of successful opinion-shopping at the partner level. This supports the thesis that the audit market characteristics that are key to promote or deter opinion shopping might differ at the firm and partner level within a country, with consequences for audit quality. In addition, we provide evidence on the strategies that companies use to secure more favourable opinions. The results suggest that companies may prefer to opinion shop at the partner level, which is consistent with the argument that the costs and benefits associated with opinion-shopping are different at these two levels, and lead to different outcomes. We gratefully acknowledge helpful comments and suggestions from the editor (Edward Lee) and two anonymous reviewers, as well as from seminar participants at Universidad Autónoma de Madrid, University of Navarra, University of Murcia, Zurich University, the XXIII Finance Forum, the 39th Annual Congress of the European Accounting Association, and the 2016 International Conference on Business Information. An early draft of the paper won the award for ‘Best Paper on Regulation’ at the XXIII Finance Forum. This award is sponsored by the Spanish Securities and Exchange Commission (CNMV). This award implied presenting the paper at the premises of CNMV in Madrid and providing a summary of the paper for their March 2016 bulletin. The paper also was awarded with the best paper award of the Accounting and Finance section at the 2016 BAI Conference. A prior version of the paper focused on auditor switching was presented at the VIII Workshop on Empirical Research in Financial Accounting, and the 2012 Annual Meeting of the American Accounting Association We acknowledge financial contribution from the AECA Chair in Accounting and Auditing (2018-2019), the Spanish Ministry of Science & Innovation (ECO2016-77579 and PID2019-111143GB-C33), the Cátedra UAM-ICJCE/AT1, and Universitat Jaume I (research project funding 09I340/P11B2009-05). |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|