TY - JOUR
T1 - The association between individual audit partners' risk preferences and the composition of their client portfolios
AU - Amir, Eli
AU - Kallunki, Juha Pekka
AU - Nilsson, Henrik
N1 - Funding Information:
Acknowledgments The authors thank seminar participants at the University of Auckland (New Zealand), Bocconi (Italy), Columbia University, Copenhagen Business School (Denmark), University of Cyprus (Cyprus), IE Business School (Spain), University of Jyväskylä (Finland), the University of New South Wales (Australia), the Norwegian Business School, BI (Norway), the University of Oulu (Finland), Stockholm School of Economics (Sweden), and Victoria University (Wellington, New Zealand) for many useful comments. The authors also thank Euroclear Sweden, Finansinspektionen, and The Swedish National Council for Crime Prevention (Brå) for providing the requisite data. This research was conducted while Eli Amir was a faculty member at London Business School. Eli Amir is grateful to the London Business School for research support. Juha-Pekka Kallunki and Henrik Nilsson gratefully acknowledge financial support from the NASDAQ OMX Nordic Foundation. This study has been evaluated and approved by The Regional Ethical Review Board in Umeå, Sweden (DNR 08:074 Ö and DNR I3-0449/2009). All remaining errors are our own.
PY - 2014/3
Y1 - 2014/3
N2 - We explore whether audit partners' attitude towards risk, as measured by their personal criminal convictions, are reflected in the composition of their client portfolios. Analyzing a unique dataset of Swedish audit partners' criminal convictions, we find that the clients of audit partners with criminal convictions are characterized by greater financial, governance, and reporting risk than those of audit partners without criminal convictions. Also, clients of audit partners with criminal convictions pay larger audit fees, on average, than those of auditors without criminal convictions.
AB - We explore whether audit partners' attitude towards risk, as measured by their personal criminal convictions, are reflected in the composition of their client portfolios. Analyzing a unique dataset of Swedish audit partners' criminal convictions, we find that the clients of audit partners with criminal convictions are characterized by greater financial, governance, and reporting risk than those of audit partners without criminal convictions. Also, clients of audit partners with criminal convictions pay larger audit fees, on average, than those of auditors without criminal convictions.
KW - Accounting conservatism
KW - Audit partners
KW - Audit risk
KW - Client portfolios
KW - Criminal convictions
UR - http://www.scopus.com/inward/record.url?scp=84893923721&partnerID=8YFLogxK
U2 - 10.1007/s11142-013-9245-8
DO - 10.1007/s11142-013-9245-8
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AN - SCOPUS:84893923721
VL - 19
SP - 103
EP - 133
JO - Review of Accounting Studies
JF - Review of Accounting Studies
SN - 1380-6653
IS - 1
ER -
