Commercialization of audit firms and auditors’ subjective well-being

Purpose - The purpose of this study is to explore how the commercialization of audit firms relates to the subjective well-being (SWB) of auditors. Drawing on the conservation of resources and social identity theories, the authors argue that the commercialization of audit firms enhances auditors’ subjective well-being in its overall happiness and job-related dimensions through two theoretical mechanisms. First, it constitutes a valuable resource for an auditor, and second, it reinforces the auditor’s identification with a firm. The authors subsequently contend that this relation is contingent on whether auditors are used in Big four or non-Big four audit firms. Design/methodology/approach - The authors test our hypotheses-based data obtained from a survey of 166 Swedish auditors. The data are explored by means of descriptive statistics, correlation matrixes and linear moderating multiple regression analyzes. Findings - The authors show that commercial orientation can have a positive effect on auditors’ SWB. The authors also find that the positive relationship between commercialization and SWB is stronger for auditors employed by one of the Big four firms. Originality/value - The results contribute to the ongoing debate about the normalization of commercialization within the audit profession by theorizing on and providing empirical support for the positive consequences of commercialization.