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Audit Partner Performance: A Network Perspective

8 October 2014

Time: 1:00 - 2:00pm
Venue: Mile End Campus, Bancroft Building, Room 4.04/08

Speaker name & affiliation
Irem Tuna, London Business School

Seminar title
Audit Partner Performance: A Network Perspective

How is this talk of interest to SBM’s research community?
Our research shows that connections among auditors allow them to improve the audit quality and thereby contributing to the effective functioning of corporate governance in capital markets.

Abstract
We provide a partner level analysis on the association between the social capital of an audit partner and their audit quality and fees. Using a sample of French listed firms we construct a network consisting of 4,159 board directors and 734 audit partners, mapping the connections between audit partner and directors, between directors and between audit partners, we find that better-connected (better-networked) audit partners provide higher quality audits and are associated with higher audit fees. The level of an audit partner’s social capital decreases if they have higher levels of tenure and greater levels of economic bonding with their clients.

Lunch will be provided in the fourth floor kitchen from 12:30pm

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