The Ties that Bind: Knowledge-Sharing Networks and Auditor Job Performance

45 Pages Posted: 12 Dec 2017

See all articles by Monika Causholli

Monika Causholli

University of Kentucky - Von Allmen School of Accountancy

Theresa Floyd

University of Montana - Department of Management and Marketing

Nicole Thorne Jenkins

University of Kentucky - Von Allmen School of Accountancy, Gatton College of Business and Economics

Scott Soltis

University of Kentucky - School of Management

Date Written: December 8, 2017

Abstract

The dissemination of knowledge in audit firms is a critical process that has gone relatively unexamined by researchers. Using social network analysis to quantify the knowledge-seeking networks in a Big 4 audit firm in the U.S., we document the factors that determine the knowledge seeking activities of auditors. We find that auditors tend to seek knowledge from fellow auditors whom they consider to be friends, those with whom they are on the same audit team, those of similar rank, and auditors with longer tenures. We also examine the association between the types and patterns of knowledge seeking ties and individual auditor performance. We find that auditor job performance is negatively associated with the number of knowledge-seeking ties, but positively associated with mutually-acknowledged ties, and the extent of connectedness in the auditor’s knowledge-seeking network. Taken together, we demonstrate that the nature of social ties between auditors affects knowledge acquisition and the latter in turn has implications for auditor performance.

Keywords: Social Networks, Knowledge-Sharing, Auditor Performance

JEL Classification: M42

Suggested Citation

Causholli, Monika and Floyd, Theresa and Jenkins, Nicole Thorne and Soltis, Scott, The Ties that Bind: Knowledge-Sharing Networks and Auditor Job Performance (December 8, 2017). Available at SSRN: https://ssrn.com/abstract=3084942 or http://dx.doi.org/10.2139/ssrn.3084942

Monika Causholli (Contact Author)

University of Kentucky - Von Allmen School of Accountancy ( email )

Lexington, KY 40506
United States

Theresa Floyd

University of Montana - Department of Management and Marketing ( email )

Missoula, MT 59812
United States

Nicole Thorne Jenkins

University of Kentucky - Von Allmen School of Accountancy, Gatton College of Business and Economics ( email )

Lexington, KY 40506
United States

Scott Soltis

University of Kentucky - School of Management ( email )

Lexington, KY 40546
United States

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