Determining factors for audit opinion in private family and non-family firms. Evidence from Spain

Santiago Lago-Peñas, Elena Mareque Álvarez-Santullano, Elena Rivo-López and Mónica Villanueva-Villar

No 1701, Working Papers. Collection C: Family business from Universidade de Vigo, GEN - Governance and Economics research Network

Abstract: This paper analyzes the determining factors for audit opinion in private firms, and whether such factors differ between family and non-family firms. With a sample of 9,873 Spanish firms for the period 2011-2015, the empirical results suggest that auditor tenure and ROA raise the probability of receiving a favorable opinion; and that losses during the previous year, high financial leverage, and hiring one of the so-called “Big 4” auditing firms increase the probability of receiving an unfavorable opinion. Furthermore, we provide evidence that the size of such effects differs between family and non-family firms.

Keywords: Auditing; Family Business; Agency Theory; Big 4; Audit Opinion. (search for similar items in EconPapers)
JEL-codes: M14 M41 M42 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2017-10
New Economics Papers: this item is included in nep-acc, nep-eur and nep-sbm
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http://infogen.webs.uvigo.es/WPC/WP1701.pdf First version, 2017 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:gov:wpfami:1701

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