Foreign Institutional Ownership and Auditor Choice: Evidence from Worldwide Institutional Ownership

dc.contributor.authorKim, Jeong-Bon
dc.contributor.authorPevzner, Mikhail
dc.contributor.authorXin, Xiangang
dc.date.accessioned2018-01-29T16:20:15Z
dc.date.available2018-01-29T16:20:15Z
dc.date.issued2016-07-16
dc.description.abstractWe investigate how the demand for higher quality audits outside of the United States is affected by the type of institutional investors, foreign versus domestic. Consistent with the notion that foreign institutional investors (compared to domestic institutional investors) are more informationally disadvantaged, in a large sample of firm-year observations from 41 non-U.S. countries, we find that foreign institutional investors play a more important role in influencing firms’ auditor choices. This effect is stronger when the firms they invest in have more severe information asymmetries, either at the country level or at the firm level. We further find that the effect of foreign institutional investors on auditor choice concentrates on institutional investors originating from countries with stronger governance institutions. Overall, our findings suggest that cross-border institutional investment serves as an important channel in influencing firms’ auditor choices and improving the information environment of firms around the world.en_US
dc.format.extent40 pagesen_US
dc.genrejournal articlesen_US
dc.identifierdoi:10.13016/M26H4CS1J
dc.identifier.citationKim, Jeong-Bon, Pevzner & MikhailXin, Xiangang. (July 8, 2016). Foreign Institutional Ownership and Auditor Choice: Evidence from Worldwide Institutional Ownership.en_US
dc.identifier.urihttp://hdl.handle.net/11603/7724
dc.language.isoen_USen_US
dc.publisherpre-publisheden_US
dc.relation.isAvailableAtUniversity of Baltimore
dc.subjectForeign Institutional Investorsen_US
dc.subjectAuditor Choiceen_US
dc.subjectInformation Environmenten_US
dc.titleForeign Institutional Ownership and Auditor Choice: Evidence from Worldwide Institutional Ownershipen_US
dc.typeTexten_US

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