dc.contributor.author | Dekeyser, Simon | |
dc.contributor.author | Gaeremynck, Ann | |
dc.contributor.author | Knechel, W. Robert | |
dc.contributor.author | Willekens, Marleen | |
dc.date.accessioned | 2023-08-15T13:16:29Z | |
dc.date.available | 2023-08-15T13:16:29Z | |
dc.date.created | 2022-01-03T16:31:55Z | |
dc.date.issued | 2021 | |
dc.identifier.citation | Accounting Review. 2021, 96 (6), 129-152. | en_US |
dc.identifier.issn | 0001-4826 | |
dc.identifier.uri | https://hdl.handle.net/11250/3084192 | |
dc.description.abstract | Economic incentives are fundamental for understanding auditor behavior. In this paper, we investigate the association between the extent of partners’ fee-based compensation, partners’ observable net wealth, and audit quality. Using a sample of Belgian Big 4 audit firms and their predominantly private clients, our results suggest a negative association between audit quality and partner fee-based compensation, and a positive association between audit quality and partner observable net wealth. Moreover, our results show that the latter association is most significant when a partner is carrying a lot of debt, which indicates that a partner’s financial situation may affect audit quality. The extent of fee-based incentives also varies among partners of the same audit firm. Furthermore, partner and client characteristics differ based on the extent of fee-based compensation. Our findings should be of interest to regulators and audit firms as they suggest that audit partner’s economic incentives significantly affect audit quality. | en_US |
dc.language.iso | eng | en_US |
dc.publisher | American Accounting Association | en_US |
dc.subject | Partner incentives | en_US |
dc.subject | partner compensation and wealth | en_US |
dc.subject | audit quality | en_US |
dc.subject | earnings management | en_US |
dc.title | The Impact of Partners’ Economic Incentives on Audit Quality in Big 4 Partnerships | en_US |
dc.type | Peer reviewed | en_US |
dc.type | Journal article | en_US |
dc.description.version | acceptedVersion | en_US |
dc.rights.holder | American Accounting Association | en_US |
dc.source.pagenumber | 129-152 | en_US |
dc.source.volume | 96 | en_US |
dc.source.journal | Accounting Review | en_US |
dc.source.issue | 6 | en_US |
dc.identifier.doi | 10.2308/TAR-2018-0109 | |
dc.identifier.cristin | 1973909 | |
cristin.ispublished | true | |
cristin.fulltext | postprint | |
cristin.qualitycode | 2 | |