Board Members’ Outside Directorships and the Demand for Audit Quality: Large Sample Evidence From Private Firms
研究了私营企业董事会成员的外部董事任职数量与审计质量的关系，发现外部董事任职比例越高，企业越倾向于聘请高质量审计师，且董事网络和外部任职公司规模影响这一决策。
Board members with multiple directorships develop reputational capital as decision experts. Prior studies based on public firms suggest that such directors would use higher quality auditors to improve the quality of financial reporting and, thereby, protect their reputational capital. This study is the first large-scale study that investigates whether multiple directorships influence auditor choice in the setting of private firms. The result indicates a significant positive association between the proportion of board members with outside directorships and audit quality. Furthermore, it shows that the propensity to hire a higher quality auditor is significantly influenced by directors’ network. Finally, the results indicate that the incentives to invest in higher quality auditors are largely influenced by the size of the companies in which board members have their outside directorships.