The effect of diversification on auditor selection in business groups: A case from Taiwan

Wen Ching Chang, Huey Yeh Lin, Meihua Koo

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

This study examines effects of group diversification on the number of industry-specialist auditor selections in business groups. Using 2003–2010 Taiwanese business groups as the sample, our results show that unrelated diversification is significantly positively associated with the number of industry-specialist auditor selections in business groups, including audit firms and audit partners. Related diversification is significantly negatively associated with the number of industry-specialist audit partner selections in business groups. Overall, group member firms select different industry-specialist audit firms because of industry diversity and the same industry-specialist audit partners because of industry similarity.

Original languageEnglish
Pages (from-to)422-436
Number of pages15
JournalInternational Review of Economics and Finance
Volume49
DOIs
Publication statusPublished - 2017 May 1

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All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

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