Volume 15 No. 1, June 2016
ARTICLE INFO
Article History:
Received: 21 September 2015
Accepted: 21 March 2016
Published: 23 June 2016
MANAGEMENT AND ACCOUNTING REVIEW, VOLUME 15 NO. 1, JUNE 2016
Joint Auditor Pair, Joint Auditor Tenure and Corporate Behavior: Evidence from Kuwait
Ali R. Almutairi
Department of Accounting,
College of Administrative Sciences,
Kuwait University, Kuwait
Department of Accounting,
College of Administrative Sciences,
Kuwait University, Kuwait
ABSTRACT
This paper investigates the effect of joint auditor pair and joint auditor tenure on corporate behavior. Using a sample of 208 year-observations of public companies traded on the Kuwait stock exchange (KSE) over the period of 2008 to 2009, evidence indicates a positive association between the choice 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 of other auditor pairs has no impact on the company’s behavior. In addition, corporate behavior is positively related to joint auditor tenure when joint auditor tenure is measured in a continuous form. Using binary indicators for joint auditor tenure, the results, in general, indicate that corporate behavior in terms of trading history and communication improves after the fifth year of auditor engagement.
Keywords: Kuwait corporate behavior, auditor tenure, joint audit
Keywords: Kuwait corporate behavior, auditor tenure, joint audit