The effect of ownership structure and board characteristics on auditor choice: evidence from Egypt

In this study, we explore the influence of board characteristics and ownership structure on auditor choice decisions in less strictly legal environments, like Egypt. Using a large sample 899 firm-year observations for period 2011 to 2019, employed logistic probit regressions. We find that larger boards, institutional ownership, foreign have significant positive association with appointing Big 4 auditors. contrast, our findings indicate CEO duality family are negatively related choice. Our results also show powerful CEOs (duality) independent directors more likely hire second-tier auditors instead 4, whereas owners third-tier remain robust even after taking audit committee endogeneities issues into consideration. Taken together, research, therefore, provides consistent evidence different governance variables can effectively generate economic forces support diverging regarding patterns attenuate agency problems. important implications regulators, policymakers, understand drivers market structure.