The downside of the network ties between CEO/CFOs and auditors through external directorships: Evidence from auditor selection and subsequent audit quality

• Main Authors: YU, Jaeyoon, KWAK, Byungjin, PARK, Myung Seok, ZANG, Yoonseok
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2016
• Subjects: CEO/CFO outside directorship; auditor selection; audit quality; auditor independence; Accounting; Business Law, Public Responsibility, and Ethics; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/1690; https://ink.library.smu.edu.sg/context/soa_research/article/2717/viewcontent/CEO_CFO_Auditor_Selection_2017.pdf
• Institution: Singapore Management University

This study examines whether the professional ties of Chief Executive Officers/Chief Financial Officers (CEO/CFOs) to auditors through external directorships affect auditor selection and subsequent audit quality. Professional ties to auditors arise when the CEO/CFO of a firm (referred to as the home...