Description and sources of variables
| Variable name | Measurement | Sources |
|---|---|---|
| Audit fees | Natural log of total audit fees | Annual reports |
| Auditing time | It is measured as the days between the balance sheet date and the signature date of the audit report | Annual reports |
| IFRS | IFRS adoption is defined as a categorical variable which equals 1 if the company prepares IFRS report or 0 – otherwise | Annual reports |
| Auditor switch | Is equal to 1 if, in a year, the firm uses a different audit firm to audit its financial report compare to the prior year | Annual reports |
| Big4 | Indicates the type of auditor that audit company financial statements and is a discrete variable that takes on 1 = Big4, 0 = non-Big4 | Annual reports |
| Firm size | Natural logarithm of the total asset | Annual reports |
| Profitability | Dummy variable equal to 1 if the company made a profit or 0 = loss | Annual reports |
| Return on assets | Calculated as the ratio of net profit before tax to total assets | Annual reports |
| Leverage | Financial leverage is measured as the ratio of total liability to total assets | Annual reports |
| Variable name | Measurement | Sources |
|---|---|---|
| Audit fees | Natural log of total audit fees | Annual reports |
| Auditing time | It is measured as the days between the balance sheet date and the signature date of the audit report | Annual reports |
| IFRS | IFRS adoption is defined as a categorical variable which equals 1 if the company prepares IFRS report or 0 – otherwise | Annual reports |
| Auditor switch | Is equal to 1 if, in a year, the firm uses a different audit firm to audit its financial report compare to the prior year | Annual reports |
| Big4 | Indicates the type of auditor that audit company financial statements and is a discrete variable that takes on 1 = Big4, 0 = non-Big4 | Annual reports |
| Firm size | Natural logarithm of the total asset | Annual reports |
| Profitability | Dummy variable equal to 1 if the company made a profit or 0 = loss | Annual reports |
| Return on assets | Calculated as the ratio of net profit before tax to total assets | Annual reports |
| Leverage | Financial leverage is measured as the ratio of total liability to total assets | Annual reports |