Credit rating agency response to appointment of female audit partners: Evidence from the UK

Journal article

Owusu, A. and Zalata, A 2023. Credit rating agency response to appointment of female audit partners: Evidence from the UK. Journal of International Accounting, Auditing and Taxation. 50, pp. 1-18. https://doi.org/10.1016/j.intaccaudtax.2023.100525
AuthorsOwusu, A. and Zalata, A
Abstract

We study the impact of appointing women as audit partners from a credit rating agency perspective. We investigate whether credit rating agencies value the appointment of women to audit partner positions differently than when men are appointed. This study uses a United Kingdom (UK) balanced panel data of 2,472 firm-year observations of public quoted companies from 2009 to 2016 and analyzes how credit rating agencies respond to such appointments. We find a more positive credit score reaction after appointment of a female audit partner than that following the appointment of a male audit partner. This finding suggests that, from a credit rating agency perspective, there seems to be a business case for a particular gender when it comes to appointing audit partners.

Keywordsaudit partner gender; credit scores; debt market; audit quality
Year2023
JournalJournal of International Accounting, Auditing and Taxation
Journal citation50, pp. 1-18
PublisherElsevier Ltd.
ISSN1879-1603
Digital Object Identifier (DOI)https://doi.org/10.1016/j.intaccaudtax.2023.100525
Web address (URL)https://www.sciencedirect.com/science/article/pii/S1061951823000046?via%3Dihub
Accepted author manuscript
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Open
Output statusPublished
Publication dates
Online11 Feb 2023
Publication process dates
Accepted09 Feb 2023
Deposited24 Feb 2023
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