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Do Auditor Attibutes Affect the Value of Global Diversification?
Liya, Amina
Liya, Amina
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Description
A Master of Science thesis in Accounting (MSA) by Amina Liya entitled, “Do Auditor Attibutes Affect the Value of Global Diversification?”, submitted in May 2025. Thesis advisor is Dr. Feras M. Salama. Soft copy is available (Thesis, Approval Signatures, Completion Certificate, and AUS Archives Consent Form).
Abstract
The diversification discount refers to a concept where diversified firms trade at a lower valuation than their non-diversified peers. This study examines how audit quality, proxied by auditor size and auditor tenure, moderates the relationship between global diversification, firm value, and earnings management. The findings indicate that higher audit quality is associated with a higher valuation for globally diversified firms, with audit tenure exhibiting a non-linear relationship. Additionally, audit quality is also linked to a reduction in earnings management for globally diversified firms. The results are robust to alternate proxies of both global diversification and earnings management.