Determinants of Audit Staff Turnover: Evidence from Taiwan

International Journal of Auditing, Vol. 17, Issue 1, pp.100-112, 2013

26 Pages Posted: 5 May 2012 Last revised: 18 Feb 2013

See all articles by Wuchun Chi

Wuchun Chi

National Chengchi University (NCCU) - Department of Accounting

Linda Hughen

Independent

Chan-Jane Lin

National Taiwan University - College of Management

Ling Lei Lisic

Virginia Polytechnic Institute & State University - Pamplin College of Business

Multiple version iconThere are 2 versions of this paper

Date Written: May 4, 2012

Abstract

High employee turnover has long been a concern in the public accounting profession. Frequent hiring, training, and replacement of professional staff could have an adverse impact on audit quality. Using proprietary data from a Big Four accounting firm in Taiwan, we employ survival analysis and examine the factors that explain the turnover of entry-level auditors. We find that female auditors are more likely to depart the accounting firm, while performance ratings, salary, and accounting background are significantly related to higher retention rates. We do not find, however, that master’s degrees incrementally increase the retention rates of professional employees. These results hold after controlling for macroeconomic factors. Our evidence complements prior survey studies and suggests that gender, performance, salary, and accounting degree explain employee turnover in Taiwanese public accounting firms.

Keywords: auditor turnover, public accounting, gender, accounting education, survival analysis

JEL Classification: M41, M42

Suggested Citation

Chi, Wuchun and Hughen, Linda and Lin, Chan-Jane and Lisic, Ling Lei, Determinants of Audit Staff Turnover: Evidence from Taiwan (May 4, 2012). International Journal of Auditing, Vol. 17, Issue 1, pp.100-112, 2013. Available at SSRN: https://ssrn.com/abstract=2051198

Wuchun Chi (Contact Author)

National Chengchi University (NCCU) - Department of Accounting ( email )

No. 64, Sec 2
Chih-Nan Road
Wenshan 116, Taipei
Taiwan
886-2-29393091-81031 (Phone)
886-2-29387113 (Fax)

HOME PAGE: http://www3.nccu.edu.tw/~wchi/

Linda Hughen

Independent

No Address Available

Chan-Jane Lin

National Taiwan University - College of Management ( email )

Department of Accounting
1 Roosevelt Rd. Sec. 4
Taipei 106
Taiwan
886-2-3366-1115 (Phone)
886-2-2363-3640 (Fax)

Ling Lei Lisic

Virginia Polytechnic Institute & State University - Pamplin College of Business ( email )

1016 Pamplin Hall
Blacksburg, VA 24061
United States

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