Board ethics and auditor choice - International evidence

Date of this Version


Document Type

Conference Paper

Publication Details

Published Version.

Houqe, M., van Zijl, T., Dunstan, K. & Karim, W. (2010). Board ethics and auditor choice - International evidence. Paper presented at the 2010 AFAANZ conference, Christchurch, New Zealand.

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2010 HERDC submission. FoR Code: 150100

© Copyright AFAANZ, 2010


This study examines whether firms' auditor choice relates to Board ethics for forty-six countries around the globe. Using a large sample of firms (132,853 firm year observations) and controlling for a number of firm- and couutry-level factors, we find that firms in countries where "high board ethical values" prevail are more likely to hire a Big 4 auditor. We also document that the relation between board ethical values and auditor choice is mitigated by the firm's board size. These results establish an indirect link between board ethics and financial reporting quality through the firm's choice of auditor.



This document has been peer reviewed.