Influence of Banks on Company Auditor Choice: The Case of Japan

Pong, Christopher K. M.; Kita, Tsutomu

doi:10.1111/j.1099-1123.2006.00344.x

Cited by 19 publications

(15 citation statements)

References 16 publications

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“…Velury, Reisch, and O'Reilly () found that choice of industry‐specialist auditors is associated with level of institutional ownership. Pong and Kita () sampled companies listed on the Tokyo Stock Exchange and suggested that the main banks appoint a preferred auditor who frequently owns shares in companies and is often one of the largest shareholders of a public firm. Also, Kane and Velury () found consistent evidence that institutional ownership is positively associated with auditor size.…”

Section: Determinants Of Auditor Choicementioning

confidence: 99%

Determinants of auditor choice: Review of the empirical literature

Habib

Bhuiyan

et al. 2019

Int J Auditing

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We synthesize the empirical archival literature on the determinants of auditor choice in an international setting, critique the findings, and offer suggestions for future research. We categorize the determinants into (i) firm‐level ownership variables, (ii) nonownership corporate governance determinants, (iii) economic determinants driven by the risk of information asymmetry, and (iv) country‐level institutional determinants, including legal protection of investors, political connections, and national culture. Our comprehensive review not only enriches the academic literature, but also provides material of considerable interest to investors, practitioners (auditors), and regulators.

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Section: Determinants Of Auditor Choicementioning

confidence: 99%

Determinants of auditor choice: Review of the empirical literature

Habib

Bhuiyan

et al. 2019

Int J Auditing

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“…Partners with established relationships with clients remain both partners and shareholders for many years, there being no enforced retirement age. Such obvious dedication by partners to their accounting firms helps to maintain strong and long-standing personal relationships with clients and their stakeholders (banks) (Pong and Kita, 2006).…”

Section: Following the West: Introduction Of Auditing And The Accountmentioning

confidence: 99%

West Meets East and East Meets West: Gender Research as a Cultural Encounter in Accounting

Komori¹

2016

Advances in Public Interest Accounting

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Globalisation has brought about migration and the transnational movement of people from different backgrounds, cultures, ethnicities, using different languages, and has thereby facilitated intercultural interaction and re-interpretation of lived experiences. Gender research in accounting is also influenced by globalization, which has created a platform where different cultures can meet and interact, and where knowledge can be synthesized from the work of authors from various different countries. Building on my own research experiences and its outcomes, this study examines the globalisation of gender research in accounting by tracing the development of research on the relationship between Japanese women and accounting. The experiences of Japan highlight that knowledge in accounting, including gender-in-accounting studies, historically flows from West to East. The language, concepts and framework in existing Western-led accounting studies translate and visualise the history and phenomena in a Japanese context to be shared within the international accounting arena. This study demonstrates that this process provides a body of interesting evidence from Japanese contexts in the fields of history, household accounting and professionalization. Accounting played an enabling role for women in Japan, while positioning women to act as catalysts for social change. Questions arise regarding the potential for such findings (from the East) to flow to the West and be accorded equal status to Western-led accounting research. The study concludes by discussing, in terms of achieving sustainable and innovative knowledge creation in accounting, the importance of herstory in understanding local culture and its integration into 'global' academic research.

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“…Japan is no exception to the dangers of weak gatekeeping due to client capture in professional services. In auditing, for example, audit firms tended to follow the lead of main banks, whose corporate clients might choose an audit firm that they think their main bank would prefer (Matsubara & Endo, 2018;Pong & Kita, 2006). By the 2000s, shifts in government policy led to the Financial Services Agency to insist on stricter audit services (as seen by its unprecedented action to suspend ChuoAoyama and to criminally indict its partners for their role in the Kanebo accounting fraud in 2006 (Skinner & Srinivasan, 2012).…”

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confidence: 99%

Professionals on Corporate Boards: How Do They Affect the Bottom Line?

Sako

Kubo

2019

SSRN Journal

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Licensed professionals, such as accountants and lawyers, play a variety of roles when they sit on corporate boards. This paper sheds light on what role professional-directors play under what circumstances, and its consequences for corporate performance. We develop a two-dimensional framework, enabling us to identify the 'wise counsel' role in relation to the professional-capital dimension, and the 'cop' and 'entrepreneur' roles in relation to the risk-taking dimension. Using a dataset of all publicly quoted companies in Japan during 2004-2015, we demonstrate that the presence of professional-directors increases profitability and corporate value in all sectors, indicative of their 'wise counsel' role. We also show that the presence of professional-directors leads to higher stock return volatility in regulated industries, evidence of their role as 'entrepreneurs'. By contrast, professional-directors lower stock return volatility in less regulated industries, indicative of their role as 'cops'. Our theory and findings on the contingent effects of professional roles on firm performance have implications for corporate governance. They also shed light on a key question in strategic management, that is, the role of professionals as a specific type of resource in explaining performance heterogeneity.

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Influence of Banks on Company Auditor Choice: The Case of Japan

Cited by 19 publications

References 16 publications

Determinants of auditor choice: Review of the empirical literature

Determinants of auditor choice: Review of the empirical literature

West Meets East and East Meets West: Gender Research as a Cultural Encounter in Accounting

Professionals on Corporate Boards: How Do They Affect the Bottom Line?

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