The impact of ethics, corporate governance, and culture on auditor choice: Evidence from the ASEAN countries of the Philippines, Vietnam, Thailand, and Indonesia

• Main Authors: Malaya, Joan Frances I., Pineda, Mireya Aranxa T., San Gabriel, Gleah Angela V., Sta. Ana, Kimberly A.
• Format: text
• Language: English
• Published: Animo Repository 2016
• Subjects: Auditors > Selection and appointment > Southeast Asia; Auditors > Professional ethics > Southeast Asia
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/5996
• Institution: De La Salle University

This thesis studies whether corporate ethics, corporate governance, and culture (measured by a secrecy score) have an effect on a company's auditor choice. Evidence was gathered from the ASEAN countries of the Philippines, Vietnam, Thailand, and Indonesia. Based on a sample of 1,535 firm year observations from the year 2009 to 2013 and after controlling for firm level variables (size of total assets, return on equity, and cash flow from operations), we find that corporate ethics has no significant effect on auditor choice. We also find that as a company's corporate governance improves and the more secretive it is, the more likely it would hire a big 4 auditor.