The impact of audit committee’s chairman characteristics on auditor choice in Malaysia ace market

Audit quality is a strong external monitoring mechanism to protect the interest of the owners according to agency theory. Many factors related to corporate governance influence the auditor choice, whereas one of the most influencing factors is audit committee that oversees the process of financial r...

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Main Author: Ahmed Alsayani, Esam Mohammed
Format: Thesis
Language:eng
eng
eng
Published: 2020
Subjects:
Online Access:https://etd.uum.edu.my/9406/1/s822934_01.pdf
https://etd.uum.edu.my/9406/2/s822934_02.pdf
https://etd.uum.edu.my/9406/3/s822934_references.docx
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spelling my-uum-etd.94062023-03-20T06:47:14Z The impact of audit committee’s chairman characteristics on auditor choice in Malaysia ace market 2020 Ahmed Alsayani, Esam Mohammed Mohamad, Mohamad Naimi Tunku Puteri Intan Safinaz School of Accountancy (TISSA) Tunku Puteri Intan Safinaz School of Accauntancy (TISSA) HF5667 Professional Ethics. Auditors. Audit quality is a strong external monitoring mechanism to protect the interest of the owners according to agency theory. Many factors related to corporate governance influence the auditor choice, whereas one of the most influencing factors is audit committee that oversees the process of financial reporting. The audit committee is headed by the chairman that has a strong influence on the audit committee structure and auditor choice, therefore, characteristics of the chairman are very important for the auditor choice. The auditor choice research has paid more attention to the audit committee overall but has overlooked the unique agency context of audit committee’s chairman characteristics on the audit quality especially on auditor choice. Therefore, the purpose of this study is to investigate the audit committee’s chairman characteristics on the auditor choice. The sample of 111 firms listed on the ACE market was used to test the hypotheses over the period 2018. Using logistic regression, this study finds that only the audit committee’s chairman tenure and busyness are significant factors that influence the auditor choice. Whereas, the audit committee’s chairman ethnicity, expertise and qualification have no significant influence on the auditor choice. These results have theoretical implications for the alignment and entrenchment hypotheses of the agency theory and practical implications for the regulators to improve the audit committee’s structure and regulations. 2020 Thesis https://etd.uum.edu.my/9406/ https://etd.uum.edu.my/9406/1/s822934_01.pdf text eng public https://etd.uum.edu.my/9406/2/s822934_02.pdf text eng public https://etd.uum.edu.my/9406/3/s822934_references.docx text eng public other masters Universiti Utara Malaysia
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
eng
advisor Mohamad, Mohamad Naimi
topic HF5667 Professional Ethics
Auditors.
spellingShingle HF5667 Professional Ethics
Auditors.
Ahmed Alsayani, Esam Mohammed
The impact of audit committee’s chairman characteristics on auditor choice in Malaysia ace market
description Audit quality is a strong external monitoring mechanism to protect the interest of the owners according to agency theory. Many factors related to corporate governance influence the auditor choice, whereas one of the most influencing factors is audit committee that oversees the process of financial reporting. The audit committee is headed by the chairman that has a strong influence on the audit committee structure and auditor choice, therefore, characteristics of the chairman are very important for the auditor choice. The auditor choice research has paid more attention to the audit committee overall but has overlooked the unique agency context of audit committee’s chairman characteristics on the audit quality especially on auditor choice. Therefore, the purpose of this study is to investigate the audit committee’s chairman characteristics on the auditor choice. The sample of 111 firms listed on the ACE market was used to test the hypotheses over the period 2018. Using logistic regression, this study finds that only the audit committee’s chairman tenure and busyness are significant factors that influence the auditor choice. Whereas, the audit committee’s chairman ethnicity, expertise and qualification have no significant influence on the auditor choice. These results have theoretical implications for the alignment and entrenchment hypotheses of the agency theory and practical implications for the regulators to improve the audit committee’s structure and regulations.
format Thesis
qualification_name other
qualification_level Master's degree
author Ahmed Alsayani, Esam Mohammed
author_facet Ahmed Alsayani, Esam Mohammed
author_sort Ahmed Alsayani, Esam Mohammed
title The impact of audit committee’s chairman characteristics on auditor choice in Malaysia ace market
title_short The impact of audit committee’s chairman characteristics on auditor choice in Malaysia ace market
title_full The impact of audit committee’s chairman characteristics on auditor choice in Malaysia ace market
title_fullStr The impact of audit committee’s chairman characteristics on auditor choice in Malaysia ace market
title_full_unstemmed The impact of audit committee’s chairman characteristics on auditor choice in Malaysia ace market
title_sort impact of audit committee’s chairman characteristics on auditor choice in malaysia ace market
granting_institution Universiti Utara Malaysia
granting_department Tunku Puteri Intan Safinaz School of Accountancy (TISSA)
publishDate 2020
url https://etd.uum.edu.my/9406/1/s822934_01.pdf
https://etd.uum.edu.my/9406/2/s822934_02.pdf
https://etd.uum.edu.my/9406/3/s822934_references.docx
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