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dc.contributor.authorHope, Ole-Kristian
dc.contributor.authorLangli, John Christian
dc.contributor.authorThomas, Wayne B.
dc.date.accessioned2012-10-19T07:49:00Z
dc.date.available2012-10-19T07:49:00Z
dc.date.issued2012
dc.identifier.issn1873-6289
dc.identifier.urihttp://hdl.handle.net/11250/93674
dc.descriptionThis is the authors’ final, accepted and refereed manuscript to the articleno_NO
dc.description.abstractWe are interested in understanding how agency conflicts in private firms arise through ownership structures and family relationships. Specifically, we analyze auditors’ increase of effort and firms’ choice of auditors in situations with higher level of agency conflicts. For a large sample of private firms, we use unique and confidential data (obtained through special permission by the government) to measure direct and ultimate ownership for each shareholder as well as extended family relationships (based on marriage and blood lines, going back four generations and extending out to fourth cousin) among all shareholders, board members, and CEOs. We first find that audit fees, our proxy for audit effort, vary as hypothesized with firmlevel characteristics related to ownership structures and family relationships. Second, we find evidence that firms in higher agency cost settings respond by having their financial statements audited by a higher-quality auditor (i.e., a Big 4 firm). However, for CEO family-related settings (i.e., where the CEO is related to the major shareholder or as the number of board members related to the CEO increases), we find no evidence of a greater demand for a Big 4 auditor.no_NO
dc.language.isoengno_NO
dc.publisherElsevierno_NO
dc.subjectagency conflictsno_NO
dc.subjectauditingno_NO
dc.subjectprivate firmsno_NO
dc.subjectfamily relationshipsno_NO
dc.subjectownershipno_NO
dc.subjectaudit effortno_NO
dc.subjectaudit demandno_NO
dc.titleAgency conflicts and auditing in private firmsno_NO
dc.typeJournal articleno_NO
dc.typePeer reviewedno_NO
dc.source.pagenumber500-517no_NO
dc.source.volume37no_NO
dc.source.journalAccounting, Organizations and Societyno_NO
dc.source.issue7no_NO
dc.identifier.doihttp://dx.doi.org/10.1016/j.aos.2012.06.002


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