This is a public meeting support  public

emerging/innovative research session

    Jukka Karjalainen
    Are Female Auditors More Likely to Be Independent? Evidence...
    emerging/innovative research session posted July 28, 2013 by Jukka Karjalainen 
    367 Views
    title:
    Are Female Auditors More Likely to Be Independent? Evidence from Modified Audit Opinions
    author(s), affiliation(s):
    Jukka Karjalainen, University of Eastern Finland; Mervi Niskanen, University of Eastern Finland; Jyrki Niskanen, University of Eastern Finland
    date:
    August 5, 2013 12:45pm - 2:00pm
    session description:

    Research Interaction Session I

    abstract:
    The purpose of this paper is to examine the effect of auditor gender on the probability of issuing a modified audit opinion (MAO). We examine the setting of private Finnish firms in which the expected costs of litigation and the loss of reputation of the auditor associated with independence impairment are relatively low and opportunistic auditor reporting is therefore likely to occur. Based on psychological evidence that women are more risk averse and behave more ethically than men, we predict that female auditors are more likely to issue an independent audit opinion compared to male auditors. Supporting this contention, we find that male auditors are less likely to issue MAOs than female auditors and specifically when economic incentives for independence impairment are strong.
    file: