Determinants of the Strength of Auditing and Reporting Standards: A Cross-Country Study
Australasian Accounting Business and Finance Journal, 7(4), 17-36, 2012
22 Pages Posted: 23 Jan 2014
Date Written: December 04, 2012
Abstract
Our study addresses the research gap regarding the absence of an empirical cross-country study on the determinants of the strength of auditing and reporting standards (SARS). Using data on 133 countries at various stages of development, we examine the role of environmental factors that influence a country’s strength of auditing and reporting standards. Our empirical results confirm that institutional infrastructure, financial market development and higher education and training jointly influence a country’s strength of auditing and reporting standards. We obtain qualitatively similar subsample results when we partition countries on the basis of economic development.
Keywords: Auditing and Reporting Standards, Development, Global
JEL Classification: M40
Suggested Citation: Suggested Citation