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The influence of Ceo and board members’ religious affiliation on auditor choice

This paper investigates how the religious affiliation of a firm’s top leaders, CEO, and board members determines auditor choice selection. In particular, this study aims to study the impact of Muslim CEOs and Muslim boards of directors on auditor choice decisions of listed firms in Malaysia. A firm-...

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Main Authors: Rahayu Abdul Rahman,, Lilis Maryasih,, Rita Meutia,, Nor Balkish Zakaria,
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2023
Online Access:http://journalarticle.ukm.my/21891/1/63907-215457-1-PB.pdf
http://journalarticle.ukm.my/21891/
https://ejournals.ukm.my/ajac/issue/view/1601
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spelling my-ukm.journal.218912023-07-17T08:48:41Z http://journalarticle.ukm.my/21891/ The influence of Ceo and board members’ religious affiliation on auditor choice Rahayu Abdul Rahman, Lilis Maryasih, Rita Meutia, Nor Balkish Zakaria, This paper investigates how the religious affiliation of a firm’s top leaders, CEO, and board members determines auditor choice selection. In particular, this study aims to study the impact of Muslim CEOs and Muslim boards of directors on auditor choice decisions of listed firms in Malaysia. A firm-year observations from 2017 to 2019 are 1,892 listed firms on Malaysian Stock Exchange were employed to scrutinise the impact of religion on the choice of appointing an auditor. Two proxies of religious affiliation which are Muslim CEO and Muslim board members were examined to represent the impact of religion. A logistic regression model results show a significant and favourable association between selecting high-quality audit firms, the percentage of Muslim directors on the board, the Muslim CEO, and religious affiliation proxies. According to the findings, Malaysian listed companies with Muslim CEOs and a sizable percentage of Muslims on their boards are likelier to use Big 4 audit firms to signify high-quality audits. As this study is one of the first empirical studies to explore the role of Muslim CEOs and Muslim board members in Malaysian firms' auditor selection, the findings are helpful to investors, policymakers, and regulators as it offers an understanding of the roles of the religious affiliation of the firm’s top leaders in promoting demand for high audit quality. Penerbit Universiti Kebangsaan Malaysia 2023 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/21891/1/63907-215457-1-PB.pdf Rahayu Abdul Rahman, and Lilis Maryasih, and Rita Meutia, and Nor Balkish Zakaria, (2023) The influence of Ceo and board members’ religious affiliation on auditor choice. Asian Journal of Accounting and Governance, 19 . pp. 1-10. ISSN 2180-3838 https://ejournals.ukm.my/ajac/issue/view/1601
institution Universiti Kebangsaan Malaysia
building Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description This paper investigates how the religious affiliation of a firm’s top leaders, CEO, and board members determines auditor choice selection. In particular, this study aims to study the impact of Muslim CEOs and Muslim boards of directors on auditor choice decisions of listed firms in Malaysia. A firm-year observations from 2017 to 2019 are 1,892 listed firms on Malaysian Stock Exchange were employed to scrutinise the impact of religion on the choice of appointing an auditor. Two proxies of religious affiliation which are Muslim CEO and Muslim board members were examined to represent the impact of religion. A logistic regression model results show a significant and favourable association between selecting high-quality audit firms, the percentage of Muslim directors on the board, the Muslim CEO, and religious affiliation proxies. According to the findings, Malaysian listed companies with Muslim CEOs and a sizable percentage of Muslims on their boards are likelier to use Big 4 audit firms to signify high-quality audits. As this study is one of the first empirical studies to explore the role of Muslim CEOs and Muslim board members in Malaysian firms' auditor selection, the findings are helpful to investors, policymakers, and regulators as it offers an understanding of the roles of the religious affiliation of the firm’s top leaders in promoting demand for high audit quality.
format Article
author Rahayu Abdul Rahman,
Lilis Maryasih,
Rita Meutia,
Nor Balkish Zakaria,
spellingShingle Rahayu Abdul Rahman,
Lilis Maryasih,
Rita Meutia,
Nor Balkish Zakaria,
The influence of Ceo and board members’ religious affiliation on auditor choice
author_facet Rahayu Abdul Rahman,
Lilis Maryasih,
Rita Meutia,
Nor Balkish Zakaria,
author_sort Rahayu Abdul Rahman,
title The influence of Ceo and board members’ religious affiliation on auditor choice
title_short The influence of Ceo and board members’ religious affiliation on auditor choice
title_full The influence of Ceo and board members’ religious affiliation on auditor choice
title_fullStr The influence of Ceo and board members’ religious affiliation on auditor choice
title_full_unstemmed The influence of Ceo and board members’ religious affiliation on auditor choice
title_sort influence of ceo and board members’ religious affiliation on auditor choice
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2023
url http://journalarticle.ukm.my/21891/1/63907-215457-1-PB.pdf
http://journalarticle.ukm.my/21891/
https://ejournals.ukm.my/ajac/issue/view/1601
_version_ 1772812460380651520
score 13.211869

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