The impact of board and ownership structure on audit firm selection
Published: July 29, 2026
Abstract
This study examines the influence of Board of Directors (BOD) and ownership structure (OWS) characteristics on the selection of Big 4 audit firms by enterprises. Using a sample of 6,354 firm-year observations from 2009 to 2022, the study employs Binary Logistic Regression to analyze the relationship between BOD and OWS variables and the decision to engage a Big 4 auditor. The findings reveal that BOD independence, domestic institutional ownership, and foreign ownership are positively associated with the choice of a Big 4 audit firm. In contrast, the ownership proportion held by BOD members is negatively related to this choice. These results provide valuable insights for managers, policymakers, and auditors, enhancing the understanding of governance and ownership factors that shape firms’ audit firm selection decisions.
Keywords
Big 4audit firm selectionboard characteristicsownership structure
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