Audit Opinions: Are They Really Different for Family Businesses?

Audit Opinions: Are They Really Different for Family Businesses?

The article poses a dual research question: What are the determining factors of the type of audit opinion in a stressed economic environment and do these factors differ between family and nonfamily firms? Our results show that auditor tenure and return on assets (ROA) raise the probability of receiv...

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Main Authors: Mercedes Mareque, Elena Rivo-López, Mónica Villanueva-Villar, Santiago Lago-Peñas
Format: Article
Language:English
Published: SAGE Publishing 2019-06-01
Series:SAGE Open
Online Access:https://doi.org/10.1177/2158244019856725
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spelling doaj-4c3f7a01493549bd9e29c61fb4e581a72020-11-25T03:21:38ZengSAGE PublishingSAGE Open2158-24402019-06-01910.1177/2158244019856725Audit Opinions: Are They Really Different for Family Businesses?Mercedes Mareque0Elena Rivo-López1Mónica Villanueva-Villar2Santiago Lago-Peñas3Governance and Economics Research Network (GEN), University of Vigo, Ourense, SpainGovernance and Economics Research Network (GEN), University of Vigo, Ourense, SpainGovernance and Economics Research Network (GEN), University of Vigo, Ourense, SpainGovernance and Economics Research Network (GEN), University of Vigo, Ourense, SpainThe article poses a dual research question: What are the determining factors of the type of audit opinion in a stressed economic environment and do these factors differ between family and nonfamily firms? Our results show that auditor tenure and return on assets (ROA) raise the probability of receiving a favorable opinion. On the contrary, losses during the previous year, high financial leverage, and hiring a “Big 4” firm increase the probability of receiving an unfavorable opinion. Although the sign and the statistical significance are similar, the size of such effects differs between family and nonfamily firms. Finally, the probability of receiving a report with a favorable opinion increases as the economic situation improves.https://doi.org/10.1177/2158244019856725
collection DOAJ
language English
format Article
sources DOAJ
author Mercedes Mareque
Elena Rivo-López
Mónica Villanueva-Villar
Santiago Lago-Peñas
spellingShingle Mercedes Mareque
Elena Rivo-López
Mónica Villanueva-Villar
Santiago Lago-Peñas
Audit Opinions: Are They Really Different for Family Businesses?
SAGE Open
author_facet Mercedes Mareque
Elena Rivo-López
Mónica Villanueva-Villar
Santiago Lago-Peñas
author_sort Mercedes Mareque
title Audit Opinions: Are They Really Different for Family Businesses?
title_short Audit Opinions: Are They Really Different for Family Businesses?
title_full Audit Opinions: Are They Really Different for Family Businesses?
title_fullStr Audit Opinions: Are They Really Different for Family Businesses?
title_full_unstemmed Audit Opinions: Are They Really Different for Family Businesses?
title_sort audit opinions: are they really different for family businesses?
publisher SAGE Publishing
series SAGE Open
issn 2158-2440
publishDate 2019-06-01
description The article poses a dual research question: What are the determining factors of the type of audit opinion in a stressed economic environment and do these factors differ between family and nonfamily firms? Our results show that auditor tenure and return on assets (ROA) raise the probability of receiving a favorable opinion. On the contrary, losses during the previous year, high financial leverage, and hiring a “Big 4” firm increase the probability of receiving an unfavorable opinion. Although the sign and the statistical significance are similar, the size of such effects differs between family and nonfamily firms. Finally, the probability of receiving a report with a favorable opinion increases as the economic situation improves.
url https://doi.org/10.1177/2158244019856725
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AT elenarivolopez auditopinionsaretheyreallydifferentforfamilybusinesses
AT monicavillanuevavillar auditopinionsaretheyreallydifferentforfamilybusinesses
AT santiagolagopenas auditopinionsaretheyreallydifferentforfamilybusinesses
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