Who makes partner in Big 4 audit firms? – Evidence from Germany

Downar B, Ernstberger J, Koch C (2020)

Publication Type: Journal article

Publication year: 2020

Journal

Accounting Organizations and Society Elsevier

Book Volume: 91

Pages Range: 101176

Article Number: 101176

DOI: 10.1016/j.aos.2020.101176

Abstract

This study investigates who makes partner in Big 4 audit firms. Building on prior qualitative research, we conduct the first large scale study using archival data to examine the incremental importance of different individual auditor characteristics for making partner. For our analyses, we collect information on German auditors from a business-oriented social network site. We conduct a longitudinal analysis for a cohort of Big 4 senior managers and directors to identify determinants of making partner. We find that economic capital, social capital, and institutionalized cultural capital matter for making partner. Further, we find that female and foreign auditors are less likely to become partner than their counterparts. In addition, we perform a cross-sectional analysis using a larger sample of auditors to identify the distinct characteristics of Big 4 partners compared to Big 4 senior managers, Big 4 directors, and non-Big 4 partners, and find results consistent with the longitudinal analysis.

Authors with CRIS profile

Benedikt Downar

Involved external institutions

Technische Universität München (TUM) DE Germany (DE) Johannes Gutenberg-Universität Mainz (JGU) DE Germany (DE)

How to cite

APA:

Downar, B., Ernstberger, J., & Koch, C. (2021). Who makes partner in Big 4 audit firms? – Evidence from Germany. Accounting Organizations and Society, 91, 101176. https://doi.org/10.1016/j.aos.2020.101176

MLA:

Downar, Benedikt, Jürgen Ernstberger, and Christopher Koch. "Who makes partner in Big 4 audit firms? – Evidence from Germany." Accounting Organizations and Society 91 (2021): 101176.

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