Does cultural similarity between CFOs and auditors impact audit quality?
Conceptually, it is ambiguous how the cultural similarity between the CFO and the engagement partner influences audit quality. Using last names to infer cultural values, I find that the cultural similarity between the CFO and the engagement partner is associated with high audit quality. Using the ex...
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| Format: | Thesis-Doctor of Philosophy |
| Language: | English |
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Nanyang Technological University
2021
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| Online Access: | https://hdl.handle.net/10356/148127 |
| _version_ | 1824454379074224128 |
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| author | Xiong, Xi |
| author2 | Zhang Huai |
| author_facet | Zhang Huai Xiong, Xi |
| author_sort | Xiong, Xi |
| collection | NTU |
| description | Conceptually, it is ambiguous how the cultural similarity between the CFO and the engagement partner influences audit quality. Using last names to infer cultural values, I find that the cultural similarity between the CFO and the engagement partner is associated with high audit quality. Using the exogenous change in cultural similarity as a result of normal CFO retirement, I show that the relationship between cultural similarity and audit quality is likely to be causal and unlikely driven by endogeneity. I also hypothesize and find that the positive impact of CFO-auditor cultural similarity on audit quality is more pronounced when firms have greater information asymmetry, greater information uncertainty, and weaker corporate governance. Collectively, my findings suggest that cultural similarity influences audit quality positively. |
| first_indexed | 2025-02-19T03:21:22Z |
| format | Thesis-Doctor of Philosophy |
| id | ntu-10356/148127 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2025-02-19T03:21:22Z |
| publishDate | 2021 |
| publisher | Nanyang Technological University |
| record_format | dspace |
| spelling | ntu-10356/1481272024-01-12T10:30:59Z Does cultural similarity between CFOs and auditors impact audit quality? Xiong, Xi Zhang Huai Nanyang Business School HuaiZhang@ntu.edu.sg Business::Auditing Conceptually, it is ambiguous how the cultural similarity between the CFO and the engagement partner influences audit quality. Using last names to infer cultural values, I find that the cultural similarity between the CFO and the engagement partner is associated with high audit quality. Using the exogenous change in cultural similarity as a result of normal CFO retirement, I show that the relationship between cultural similarity and audit quality is likely to be causal and unlikely driven by endogeneity. I also hypothesize and find that the positive impact of CFO-auditor cultural similarity on audit quality is more pronounced when firms have greater information asymmetry, greater information uncertainty, and weaker corporate governance. Collectively, my findings suggest that cultural similarity influences audit quality positively. Doctor of Philosophy 2021-04-17T13:41:56Z 2021-04-17T13:41:56Z 2021 Thesis-Doctor of Philosophy Xiong, X. (2021). Does cultural similarity between CFOs and auditors impact audit quality?. Doctoral thesis, Nanyang Technological University, Singapore. https://hdl.handle.net/10356/148127 https://hdl.handle.net/10356/148127 10.32657/10356/148127 en This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License (CC BY-NC 4.0). application/pdf Nanyang Technological University |
| spellingShingle | Business::Auditing Xiong, Xi Does cultural similarity between CFOs and auditors impact audit quality? |
| title | Does cultural similarity between CFOs and auditors impact audit quality? |
| title_full | Does cultural similarity between CFOs and auditors impact audit quality? |
| title_fullStr | Does cultural similarity between CFOs and auditors impact audit quality? |
| title_full_unstemmed | Does cultural similarity between CFOs and auditors impact audit quality? |
| title_short | Does cultural similarity between CFOs and auditors impact audit quality? |
| title_sort | does cultural similarity between cfos and auditors impact audit quality |
| topic | Business::Auditing |
| url | https://hdl.handle.net/10356/148127 |
| work_keys_str_mv | AT xiongxi doesculturalsimilaritybetweencfosandauditorsimpactauditquality |