Corporate Governance and Audit Quality: The Moderating Role of Ownership Concentration Roles

Abstract

The purpose of this study was to examine the relationship between corporate governance (CG) and audit quality (AQ), and the moderating effect of ownership concentration (OC) for Vietnamese listed companies. We used the logistic regression model on a sample of 622 Vietnam listed firms data over the period 2014-2018, with a total of 2667 firm-observations collected. The regression result showed a negative association between CG and AQ. The collected evidence suggested that internal controlling and monitoring was related to external AQ. Our study used finite proxies to measure CG and AQ in Vietnam, but there is an extensive diversity of other indicators which may help in the outcome being more precise and explicit, so that future research can extend the measurements in a more detailed manner and on a larger scale. This study primarily contributes to the literature on CG, AQ, OC and exposes the association between CG and AQ.