Description

• Title:
  Auditor Choice and Peer Firms Similarity: the Case of Tunisian Firms
• Creator:
  Ben Hassoun, Amira
• Description:
  The aim of this study is to offer novel factor perceived by firms to select an external auditor in developing countries, like Tunisia, given their unique cultural, economic and institutional context. Specifically, we examine how peer firms’ product similarity affects their decision to engage the same auditor. The data sample of this study covers the period between 2014 and 2021, across 36 firms and 1297 firm-peer-year observations. Using a novel measure for industry product similarity, results of logistic regression show that the likelihood of sharing auditor by peer firms increases when their product offering are more similar. This study finding provide evidence that Tunisian firm’s auditor selection decision focus more on knowledge and expertise of external auditor than exercising caution to protect their proprietary information. In additional test, we evaluate whether our primary result remains when we isolate Big4 and Non-Big 4 clienteles and we find a supportive evidence that the likelihood of choosing the same auditor is greater for firm pairs that are audited by a Big N. Overall, this study extends the literature on auditor choice determinant in developing country by highlighting the importance of peer firms’ product similarity in choosing external auditor and provide important evidence for investors and practitioners whether it is important for the external auditor to invest in industry specialization and build a reputation as a specialist.
• Object availability:
  free access
• Rights: https://creativecommons.org/licenses/by-nd/4.0
• Date:
  2024.02.14
• Type:
  info:eu-repo/semantics/article;
  info:eu-repo/semantics/publishedVersion
• Language:
  English
• Source:
  Copernican Journal of Finance & Accounting; Vol. 12 No. 3 (2023); 9-25;
  Copernican Journal of Finance & Accounting; Tom 12 Nr 3 (2023); 9-25;
  2300-3065;
  2300-1240
• Format:
  application/pdf
• Publisher:
  Uniwersytet Mikołaja Kopernika w Toruniu
• Relation: https://apcz.umk.pl/CJFA/article/view/48748/38713
• Subject:
  auditor choice;
  product similarity;
  knowledge transfer;
  emergent market
• Identifier: https://apcz.umk.pl/CJFA/article/view/48748
• Data provider:
  Akademicka Platforma Czasopism
• Can I use it?:
  check license
• Type:
  text