E-Thesis 77 views 24 downloads
Firm-Level Climate Risk and Big 4 Audit Firms: A Cross-Country Study / MD HAQUE
Swansea University Author: MD HAQUE
Abstract
This research examines the role of Big4 Auditors in mitigating climate risk. Primarily, this research is motivated by the lack of studies on the role of Big Four auditors on climate risk. This study, then, employs the firm-level climate risk based on the analyst calls. Subsequently, this research em...
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Swansea, Wales, UK
2023
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| Institution: | Swansea University |
| Degree level: | Master of Research |
| Degree name: | MSc by Research |
| Supervisor: | Hoque, Hafiz |
| URI: | https://cronfa.swan.ac.uk/Record/cronfa68084 |
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| Abstract: |
This research examines the role of Big4 Auditors in mitigating climate risk. Primarily, this research is motivated by the lack of studies on the role of Big Four auditors on climate risk. This study, then, employs the firm-level climate risk based on the analyst calls. Subsequently, this research employs various statistical methodologies to examine the relationship between Big 4 auditors and climate risk and found that Big 4 auditors are negatively related to firm-level climate risk. This correlation remains stable across various climate-related variables and is supported by multiple statistical approaches, such as fixed effects. To address the selection issue, furthermore, this research employs the Heckman selection model and finds that the inverse mills ratio is significantly related to climate risk. This research also uses a propensity score model to address the endogeneity problem, and our results still hold. Our empirical finding in this study, therefore, may significantly contribute to the literature in understanding the substantial influence of Big Four Auditors’ practice on climate change risk at the firm level. |
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| Item Description: |
ORCiD identifier: https://orcid.org/0009-0009-5508-1438 |
| Keywords: |
Firm-level climate risk, Big 4 Auditors, Heckman selection model, PSM |
| College: |
Faculty of Humanities and Social Sciences |