Moderating effects of corruption on auditors’ reputation and company performance in Asia Pacific countries
In the wake of the recent financial crises, it is pivotal for all countries to ensure high-quality financial reporting. Furthermore, the failures of Enron and Arthur Andersen had also reminded the society to review the origins of corporate scandal and the effects of corruption towards the society. A...
Saved in:
| Main Author: | |
|---|---|
| Format: | Thesis |
| Published: |
2015
|
| Subjects: | |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | In the wake of the recent financial crises, it is pivotal for all countries to ensure high-quality financial reporting. Furthermore, the failures of Enron and Arthur Andersen had also reminded the society to review the origins of corporate scandal and the effects of corruption towards the society. After the fall of Arthur Andersen, people’s perceptions of auditors have to a certain extent been dented and the argument for audits by reputable audit firms as synonymous with quality audit has become questionable (Iskandar, Rahmat and Ismail, 2010). An important question to address is; “Do these reputable auditors assist in a company’s performance?” Therefore, this study intends to investigate whether reputable auditors have an impact on the performance of a company. A large sample size of 15718 companies from 15 Asia Pacific countries in the year of 2012 has been selected in this study. In order to ensure the robustness of the study, the dataset has been subdivided into 3 main categories; ASEAN countries, developing countries within Asia Pacific and developed countries within Asia Pacific. Since this is a cross-country analysis, this study intends to investigate if the corruption levels of different countries will influence the relationship between auditors and the company performance. Multivariate regression is adopted in this study and all variables have been tested by using Ordinary Least Square Method. |
|---|