Culture and auditor choice: A test of the secrecy hypothesis
- Authors
- Hope, Ole-Kristian; Kang, Tony; Thomas, Wayne; Yoo, Yong Keun
- Issue Date
- 9월-2008
- Publisher
- ELSEVIER SCIENCE INC
- Keywords
- Culture; Secrecy; Auditor quality; International
- Citation
- JOURNAL OF ACCOUNTING AND PUBLIC POLICY, v.27, no.5, pp.357 - 373
- Indexed
- SCIE
SCOPUS
- Journal Title
- JOURNAL OF ACCOUNTING AND PUBLIC POLICY
- Volume
- 27
- Number
- 5
- Start Page
- 357
- End Page
- 373
- URI
- https://scholar.korea.ac.kr/handle/2021.sw.korea/122772
- DOI
- 10.1016/j.jaccpubpol.2008.07.003
- ISSN
- 0278-4254
- Abstract
- The purpose of this study is to investigate whether firms' auditor choice relates to national culture. We construct a novel measure of secretiveness based on Hofstede [Hofstede, G., 1980. Culture's Consequences: International Differences in Work Related Values. Sage Publications, Beverly Hills, CA) cultural factors. Using a very large sample of firms from 37 countries and controlling for a number of firm- and country-level factors, we find that firms in "more secretive" countries are less likely to hire a Big 4 auditor. We also document that the relation between secrecy dimension of national culture and auditor choice is mitigated by the firms' degree of internationalization. These results establish a link between national culture and financial reporting quality through the firm's choice of auditor. (c) 2008 Elsevier Inc. All rights reserved.
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Collections - Korea University Business School > Department of Business Administration > 1. Journal Articles
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