The impact of narcissism, self-confidence and auditor’s characteristics on audit report readability

Salehi, M, Dalwai, T ORCID: https://orcid.org/0000-0001-5754-5384 and Arianpoor, A, 2023. The impact of narcissism, self-confidence and auditor’s characteristics on audit report readability. Arab Gulf Journal of Scientific Research, 41 (2), pp. 202-223. ISSN 1985-9899

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Abstract

Purpose: The present study aims to assess the impact of narcissism, self-confidence and auditor's characteristics on audit report readability for companies listed on the Tehran Stock Exchange.

Design/methodology/approach: The study’s statistical population comprises firms listed on the Tehran Stock Exchange. The present research used a systematic elimination method, and 1,162 firm-year observations were obtained for seven years from 2012 to 2018. Three variables including auditor tenure, audit fee and audit specialization are used for measuring auditing features. The Fog index is used as a proxy for measuring audit report readability. In addition, in this paper, four regressions, including fixed effects, random effects, pooled and T+1, are used to estimate reliable coefficients.

Findings: The findings show a negative and significant relationship between auditor’s characteristics (tenure, fee and specialization) and audit report readability. Moreover, the variables of the auditor’s narcissism, self-confidence and mandatory auditor change have a positive and significant association with audit report readability. This study lends support to the theories of personality disorder and behavioral decision.

Originality/value: Since narcissism and self-confidence are two characteristics that shape an individual’s character and personality, some involved behavioral factors in auditors’ characteristics contribute to their decisions. The effects of these should be detected to enhance the decision-making process. The said factors significantly impact audit report readability. Hence, this paper attempts to assess the effect of the said factors on audit report readability.

Item Type:	Journal article
Publication Title:	Arab Gulf Journal of Scientific Research
Creators:	Salehi, M., Dalwai, T. and Arianpoor, A.
Publisher:	Emerald
Date:	23 March 2023
Volume:	41
Number:	2
ISSN:	1985-9899
Identifiers:	Number Type 10.1108/agjsr-08-2022-0152 DOI 1879011 Other
Rights:	© 2022 Mahdi Salehi, Tamanna Dalwai and Arash Arianpoor. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode
Divisions:	Schools > Nottingham Business School
Record created by:	Jonathan Gallacher
Date Added:	26 Mar 2024 10:31
Last Modified:	26 Mar 2024 10:31
URI:	https://irep.ntu.ac.uk/id/eprint/51159

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