콘텐츠 바로가기
로그인
컨텐츠

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Economy Economic System

Print

The effects of foreign monitoring on audit quality : Evidence from Korea

Related Document
Frame of Image
  • The effects of foreign monitoring on audit quality
  • Lee, Sang Cheol; Rhee, Mooweon; Yoon, Jongchul
  • Social Science Research Network


link
Title The effects of foreign monitoring on audit quality
Similar Titles
Sub Title

Evidence from Korea

Material Type Reports
Author(English)

Lee, Sang Cheol; Rhee, Mooweon; Yoon, Jongchul

Publisher

[New York]:Social Science Research Network

Date 2012-02
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Economy < Economic System
Holding SSRN

Abstract

This paper examines (1) whether the presence of foreign shareholders and foreign directors enhances audit quality using metrics such as auditor size and audit fees; and (2) whether the relationship between foreign monitors and audit quality is particularly greater when agency problems between shareholders and managers increase. Our dataset includes 1,574 non-financial companies listed on the Korea Stock Exchange from 2000 to 2003. Our study shows that the presence of foreign shareholders and foreign directors increases audit quality. Furthermore, the presence of foreign monitors improves the audit quality of firms controlled by professional management more than that of owner-controlled firms.