Determinants of Financial Auditor Choice for the Entities Listed on Bucharest Stock Exchange
Author:
Lecturer Ştefana Maria DIMA, Ph. D.; Univ. Prof. Bogdan DIMA, Ph. D.; Univ. Prof. Nicoleta FARCANE, Ph. D.
JEL:
G10, M42
DOI:
Keywords:
financial auditor choice, listed entity, IFRS, BSE
Abstract:
The present paper aims at identifying some of the determinants of financial auditor choice, in the case of 81 entities listed at Bucharest Stock Exchange. The outcomes of a Generalized method of Moments (GMM) metodology reveal that the de facto reporting of financial statements according to the International Financial Reporting Standards (as adopted by the European Union) and, respectively, the market capitalization exert a positive impact on listed entities’ relative preference for high quality audit firm with international expertise. \r\n\r\n