(A thesis submitted in partial fulfilment of the requirements for the degree of MASTER OF ARTS IN DEVELOPMENT ECONOMICS, VIETNAM – THE NETHERLANDS PROGRAMME FOR M.A IN DEVELOPMENT ECONOMICS)
By Le Thi Anh Thu (VNP 21)
Academic Supervisor: Dr. Le Ho An Chau
This study empiricallydetermines the impact of audit quality on the firms’ performance with the dataset of 268 listed companies in Vietnam from 2010 to 2015. Audit quality is considered as an external monitoring factor which affects to firm performance. Audit quality is proxied by three variables including audit rotation, audit reputation and audit firm experience whereas firm performance is measured by ROA, Tobin’s Q and Z-Score. Generalized method of moments (GMM) estimation is applied. The results demonstrate that there is no impact of audit reputation and audit experience onfirm performance of listed companies in Vietnam. However, audit rotation showed positive significant effect on ROA indicator. This is implicated that audit switching increases the audit independence and positively affect firm performance.
Keywords: audit tenure, audit reputation, audit experience, firm performance.
AbbreviationsTPP – Trans-Pacific Strategy Economic Partnership Agreement; PCAOB – Protecting Investors through Audit Oversight; VACPA - Vietnam Association of Certified Public Accountants; ICAEW – Institution of Chartered Accountants in England and Wales; IFAC - International Federation of Accountants.
Full version is available at Library of Vietnam- Netherland Progamme: 1A Hoang Dieu, Phu Nhuan Dist, Ho Chi Minh city, Vietnam.