Audit Firms' Corporate Social Responsibility Activities and Auditor Reputation

Accounting, Organizations and Society, forthcoming 

61 Pages Posted: 21 Jan 2022 Last revised: 19 Jul 2024

See all articles by Joshua L. Gunn

Joshua L. Gunn

University of Pittsburgh - Katz Graduate School of Business

Chan Li

University of Kansas

Lin Liao

Nanjing Audit Univeristy

Jinxuan Yang

affiliation not provided to SSRN

Shan Zhou

The University of Sydney

Date Written: July 19, 2024

Abstract

Professional audit firms increasingly engage in Corporate Social Responsibility (CSR) activities. This paper examines the effect of audit firms’ CSR activities on auditors’ reputation. We find that audit firms that engage in CSR experience an increase in the size of their client base compared to audit firms that do not engage in CSR. The effect is stronger for audit firms without existing reputation from a Big 4 brand name or industry specialization. We also find that clients that value CSR are more likely to hire audit firms that engage in CSR. Overall, our results suggest that CSR is an effective tool for audit firms to build their reputation in the marketplace.

Suggested Citation

Gunn, Joshua L. and Li, Chan and Liao, Lin and Yang, Jinxuan and Zhou, Shan, Audit Firms' Corporate Social Responsibility Activities and Auditor Reputation (July 19, 2024). Accounting, Organizations and Society, forthcoming , Available at SSRN: https://ssrn.com/abstract=4011935 or http://dx.doi.org/10.2139/ssrn.4011935

Joshua L. Gunn (Contact Author)

University of Pittsburgh - Katz Graduate School of Business ( email )

Pittsburgh, PA 15260
United States

Chan Li

University of Kansas ( email )

Capitol Federal Hall
Lawrence, KS 66045
United States
7857661277 (Phone)
66045 (Fax)

Lin Liao

Nanjing Audit Univeristy ( email )

86 Yushan W Rd
Nanjing, Jiangsu 210017
China

Jinxuan Yang

affiliation not provided to SSRN

Shan Zhou

The University of Sydney ( email )

University of Sydney
Sydney, NSW 2006
Australia

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
0
Abstract Views
1,376
PlumX Metrics