The Association between Institutional Ownership and Audit Properties

• Main Authors: HAN, Soongsoo (Sam), Kang, Tony, Rees, Lynn
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2009
• Subjects: Audit quality; Institutional ownership; Monitoring; Audit risk; Corporate governance; Business Law, Public Responsibility, and Ethics; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research_smu/3; https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=1002&context=soa_research_smu
• Institution: Singapore Management University

In this study, we examine how institutional ownership affects the quality and riskiness of the financial statement audit. We hypothesize that institutional investors can influence corporate policy to employ governance mechanisms that reduce their monitoring costs. Our evidence shows that firms are m...