CEO Power and Auditor Choice
DOI:
https://doi.org/10.20525/ijfbs.v4i4.39Keywords:
CEO Power, Auditor Choice, Agency Problem, Corporate Governance, Audit QualityAbstract
In this paper, we examine the impact of CEO power on auditor choice. We are motivated by the competing financial reporting incentives arising from CEO power. Our empirical finding suggests that powerful CEOs are more likely to hire high-quality auditors as a signal of superior financial reporting quality. We contribute to the literature of auditor switch and extend the research on the links between CEO power and firm behaviors.
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