Audit size and earnings value relevance in Malaysia
We examine the difference in audit quality between Big 4 audit firms and non-Big 4 audit firms, whereby we us earnings value relevance as a proxy for audit quality. Our sample is non-financial firms listed on Bursa Malaysia. Based on 4, 127 firm-year observations over the period 2003-2012, we find t...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
International Information Institute
2016
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| Subjects: | |
| Online Access: | http://repo.uum.edu.my/19733/1/I%2019%207%28A%29%202016%202655%202659.pdf http://repo.uum.edu.my/19733/ http://www.information-iii.org/abs_e2.html |
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| Summary: | We examine the difference in audit quality between Big 4 audit firms and non-Big 4 audit firms, whereby we us earnings value relevance as a proxy for audit quality. Our sample is non-financial firms listed on Bursa Malaysia. Based on 4, 127 firm-year observations over the period 2003-2012, we find that earnings of firms audited by Big 4 audit firms are more value relevant that earnings of firms audited by non-Big 4 audit firms.This is evidenced by higher regression coefficient on earnings and coefficient of determination, the adjusted R2, for firms audited by Big 4 audit firms. Our results indicate that audit is of higher quality for Big 4 audit firms. |
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