Regression results for the effect of different joint audit pairs on audit quality in French, Moroccan, and Tunisian companies across company sizes
| Data | French companies | Moroccan companies | Tunisian companies | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Small | Medium | Large | Small | Medium | Large | Small | Medium | Large | |
| Panel A: Comparison of audit quality between pairs that include at least one of the Big Four audit firms | |||||||||
| B4B4 VS B4S1 | −0.0289** (0.0125) | −0.00798** (0.00400) | 0.00328* (0.00190) | 0.0809 (0.0642) | 0.0279* (0.0162) | −0.00779 (0.0159) | 0.0762 (0.0937) | −0.0742 (0.154) | 0.203 (0.130) |
| B4B4 VS B4S2 | −0.0279** (0.0119) | −0.00743* (0.00407) | 0.00154 (0.00362) | 0.111* (0.0585) | −0.0183 (0.0301) | −0.0495 (0.0335) | 0.0652 (0.0643) | −0.0939 (0.121) | −0.0685 (0.164) |
| B4S1 VS B4S2 | 0.000989 (0.00490) | 0.000555 (0.00340) | −0.00174 (0.00385) | 0.0306 (0.0283) | −0.0461* (0.0250) | −0.0417 (0.0301) | −0.0111 (0.0466) | −0.0196 (0.0508) | −0.271* (0.137) |
| Panel B: Comparison of audit quality between pairs that include at least one of the Big Four audit firms and pairs without any Big Four audit firms | |||||||||
| B4B4 VS S1S1 | −0.0250* (0.0131) | −0.00245 (0.00536) | 0.0143* (0.00776) | 0.106* (0.0584) | 0.0242 (0.0284) | −0.0391 (0.0249) | – | – | −0.442** (0.198) |
| B4B4 VS S1S2 | −0.0354*** (0.0122) | −0.00457 (0.00534) | −0.000814 (0.00440) | 0.122** (0.0599) | −0.00140 (0.0353) | −0.0328 (0.0253) | 0.00509 (0.0803) | −0.157 (0.109) | 0.238** (0.108) |
| B4B4 VS S2S2 | −0.0223* (0.0126) | −0.00741 (0.00511) | −0.0105 (0.00754) | 0.123** (0.0605) | 0.0122 (0.0375) | −0.0372 (0.0298) | 0.0787 (0.0801) | −0.107 (0.124) | 0.0713 (0.0874) |
| B4S1 VS S1S1 | 0.00391 (0.00800) | 0.00553 (0.00500) | 0.0110 (0.00791) | 0.0250 (0.0263) | −0.00367 (0.0234) | −0.0313 (0.0245) | – | – | −0.645** (0.269) |
| B4S1 VS S1S2 | −0.00654 (0.00611) | 0.00341 (0.00482) | −0.00409 (0.00435) | 0.0407 (0.0284) | −0.0293 (0.0274) | −0.0250 (0.0227) | −0.0712 (0.0553) | −0.0831 (0.0707) | 0.0358 (0.0734) |
| B4S1 VS S2S2 | 0.00665 (0.00696) | 0.000570 (0.00457) | −0.0138* (0.00756) | 0.0425 (0.0359) | −0.0156 (0.0313) | −0.0294 (0.0281) | 0.00247 (0.0339) | −0.0325 (0.0562) | −0.131 (0.0866) |
| B4S2 VS S1S1 | 0.00292 (0.00706) | 0.00498 (0.00523) | 0.0128 (0.00830) | −0.00561 (0.0267) | 0.0424* (0.0252) | 0.0104 (0.0365) | – | – | −0.374 (0.264) |
| B4S2 VS S1S2 | −0.00753 (0.00489) | 0.00286 (0.00476) | −0.00236 (0.00525) | 0.0101 (0.0277) | 0.0169 (0.0252) | 0.0167 (0.0323) | −0.0601 (0.0421) | −0.0634 (0.0423) | 0.307*** (0.115) |
| B4S2 VS S2S2 | 0.00566 (0.00586) | 1.55e-05 (0.00434) | −0.0120 (0.00792) | 0.0119 (0.0247) | 0.0305 (0.0287) | 0.0124 (0.0333) | 0.0136 (0.0373) | −0.0129 (0.0286) | 0.140 (0.113) |
| Panel C: Comparison of audit quality between pairs without any of the Big Four audit firms | |||||||||
| S1S1 VS S1S2 | −0.0105 (0.00742) | −0.00212 (0.00625) | −0.0151* (0.00903) | 0.0157 (0.0277) | −0.0256 (0.0241) | 0.00630 (0.0232) | −0.0736 (0.0455) | −0.0506 (0.0491) | 0.681*** (0.244) |
| S1S1 VS S2S2 | 0.00274 (0.00793) | −0.00496 (0.00585) | −0.0248** (0.0107) | 0.0175 (0.0324) | −0.0119 (0.0278) | 0.00198 (0.0294) | – | – | 0.514** (0.227) |
| S1S2 VS S2S2 | 0.0132** (0.00627) | −0.00284 (0.00562) | −0.00969 (0.00821) | 0.00177 (0.0237) | 0.0136 | −0.00432 (0.0229) | 0.0736 (0.0455) | 0.0506 (0.0491) | −0.167*** (0.0540) |
| Data | French companies | Moroccan companies | Tunisian companies | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Small | Medium | Large | Small | Medium | Large | Small | Medium | Large | |
| B4B4 | −0.0289 | −0.00798 | 0.00328 | 0.0809 (0.0642) | 0.0279 | −0.00779 (0.0159) | 0.0762 (0.0937) | −0.0742 (0.154) | 0.203 (0.130) |
| B4B4 | −0.0279 | −0.00743 | 0.00154 (0.00362) | 0.111 | −0.0183 (0.0301) | −0.0495 (0.0335) | 0.0652 (0.0643) | −0.0939 (0.121) | −0.0685 (0.164) |
| B4S1 | 0.000989 (0.00490) | 0.000555 (0.00340) | −0.00174 (0.00385) | 0.0306 (0.0283) | −0.0461 | −0.0417 (0.0301) | −0.0111 (0.0466) | −0.0196 (0.0508) | −0.271 |
| B4B4 | −0.0250 | −0.00245 (0.00536) | 0.0143 | 0.106 | 0.0242 (0.0284) | −0.0391 (0.0249) | – | – | −0.442 |
| B4B4 | −0.0354 | −0.00457 (0.00534) | −0.000814 (0.00440) | 0.122 | −0.00140 (0.0353) | −0.0328 (0.0253) | 0.00509 (0.0803) | −0.157 (0.109) | 0.238 |
| B4B4 | −0.0223 | −0.00741 (0.00511) | −0.0105 (0.00754) | 0.123 | 0.0122 (0.0375) | −0.0372 (0.0298) | 0.0787 (0.0801) | −0.107 (0.124) | 0.0713 (0.0874) |
| B4S1 | 0.00391 (0.00800) | 0.00553 (0.00500) | 0.0110 (0.00791) | 0.0250 (0.0263) | −0.00367 (0.0234) | −0.0313 (0.0245) | – | – | −0.645 |
| B4S1 | −0.00654 (0.00611) | 0.00341 (0.00482) | −0.00409 (0.00435) | 0.0407 (0.0284) | −0.0293 (0.0274) | −0.0250 (0.0227) | −0.0712 (0.0553) | −0.0831 (0.0707) | 0.0358 (0.0734) |
| B4S1 | 0.00665 (0.00696) | 0.000570 (0.00457) | −0.0138 | 0.0425 (0.0359) | −0.0156 (0.0313) | −0.0294 (0.0281) | 0.00247 (0.0339) | −0.0325 (0.0562) | −0.131 (0.0866) |
| B4S2 | 0.00292 (0.00706) | 0.00498 (0.00523) | 0.0128 (0.00830) | −0.00561 (0.0267) | 0.0424 | 0.0104 (0.0365) | – | – | −0.374 (0.264) |
| B4S2 | −0.00753 (0.00489) | 0.00286 (0.00476) | −0.00236 (0.00525) | 0.0101 (0.0277) | 0.0169 (0.0252) | 0.0167 (0.0323) | −0.0601 (0.0421) | −0.0634 (0.0423) | 0.307 |
| B4S2 | 0.00566 (0.00586) | 1.55e-05 (0.00434) | −0.0120 (0.00792) | 0.0119 (0.0247) | 0.0305 (0.0287) | 0.0124 (0.0333) | 0.0136 (0.0373) | −0.0129 (0.0286) | 0.140 (0.113) |
| Panel C: Comparison of audit quality between pairs without any of the Big Four audit firms | |||||||||
| S1S1 | −0.0105 (0.00742) | −0.00212 (0.00625) | −0.0151 | 0.0157 (0.0277) | −0.0256 (0.0241) | 0.00630 (0.0232) | −0.0736 (0.0455) | −0.0506 (0.0491) | 0.681 |
| S1S1 | 0.00274 (0.00793) | −0.00496 (0.00585) | −0.0248 | 0.0175 (0.0324) | −0.0119 (0.0278) | 0.00198 (0.0294) | – | – | 0.514 |
| S1S2 | 0.0132 | −0.00284 (0.00562) | −0.00969 (0.00821) | 0.00177 (0.0237) | 0.0136 | −0.00432 (0.0229) | 0.0736 (0.0455) | 0.0506 (0.0491) | −0.167 |
***, **, * indicates significant at 1, 5, and 10% significance levels, respectively
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