JOINT AUDITOR PAIR, JOINT AUDITOR TENURE AND CORPORATE BEHAVIOR: EVIDENCE FROM KUWAIT

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Ali R. Almutairi

Abstract

This paper investigates the effect of joint auditor pair and joint auditortenure on corporate behavior. Using a sample of 208 year-observationsof public companies traded on the Kuwait stock exchange (KSE) over theperiod of 2008 to 2009, evidence indicates a positive association between thechoice of Big 4-Big 4 (BB) auditor pair and the level of corporate behavior.This result is consistent across the three aspects of corporate behavior (i.e.trading history, communication and disclosure). However, the choice ofother auditor pairs has no impact on the company’s behavior. In addition,corporate behavior is positively related to joint auditor tenure when jointauditor tenure is measured in a continuous form. Using binary indicatorsfor joint auditor tenure, the results, in general, indicate that corporatebehavior in terms of trading history and communication improves after thefifth year of auditor engagement.Keywords: Kuwait corporate behavior, auditor tenure, joint audit

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How to Cite
R. ALMUTAIRI, Ali. JOINT AUDITOR PAIR, JOINT AUDITOR TENURE AND CORPORATE BEHAVIOR: EVIDENCE FROM KUWAIT. Management & Accounting Review (MAR), [S.l.], v. 15, n. 1, p. 95-129, june 2016. ISSN 2550-1895. Available at: <http://arionline.uitm.edu.my/ojs/index.php/MAR/article/view/564>. Date accessed: 19 dec. 2018.
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