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The Shareholders Confidence and Effectiveness of the Joint Auditors: Empirical Validation in the French Context

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  • Abdelhakim Benali

    (LARTIGE - Laboratoire de Recherche en Technologie d'Information, Gouvernance et Entreprenariat - FSEG Sfax - Faculté des Sciences Economiques et de Gestion de Sfax - Université de Sfax - University of Sfax)

Abstract

The goal of our research work is to show the effect of the presence of joint auditors (BIG4) and a few mechanisms of governance on the shareholders' confidence. We are trying to explore the relationship between its different variables in the French context during the period 2005-2010. The empirical results show a positive and significant relationship between, on the one hand, the presence of two auditors BIG4, the opinion of the auditors, the independence of the members of the audit committees and the boards of directors and the asset efficiency and the confidence of the shareholders of the counterpart. On the other hand, the audit fees, the collaboration period between the associate signatories, the size and the debts of the companies seem to have a negative and significant effect on the shareholders' confidence.

Suggested Citation

  • Abdelhakim Benali, 2013. "The Shareholders Confidence and Effectiveness of the Joint Auditors: Empirical Validation in the French Context," Post-Print hal-01054921, HAL.
    • Handle: RePEc:hal:journl:hal-01054921
    DOI: 10.5539/ijbm.v8n11p76
    Note: View the original document on HAL open archive server: https://hal.science/hal-01054921
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    References listed on IDEAS

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    2. Jay B. Barney & Mark H. Hansen, 1994. "Trustworthiness as a Source of Competitive Advantage," Strategic Management Journal, Wiley Blackwell, vol. 15(S1), pages 175-190, December.
    3. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    4. Fama, Eugene F, 1980. "Agency Problems and the Theory of the Firm," Journal of Political Economy, University of Chicago Press, vol. 88(2), pages 288-307, April.
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    1. Ali Ahmadi & Abdelfettah Bouri, 2019. "The Effect of Audit Quality on the Extent of Voluntary Disclosure: Companies Listed in the Tunisian Stock Exchange," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(1), pages 59-73, March.

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    Keywords

    confidence; shareholders; effectiveness; joint auditors;
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