The international firms as new entrants to the statutory audit market: an empirical analysis of auditor selection in Greece, 1993 to 1997

This paper investigates choice of statutory auditor in Greece in the five years subsequent to the 1992 liberalization of the audit market. We analyse auditor choices by 205 companies which, by 1997, represented almost 90% of companies listed on the Athens Stock Exchange. We find that the level of shareholdings by foreign shareholders is positively associated with choice of a Big Six versus any other auditor both immediately after liberalization in 1993 and still in 1997, indicative of the role of the Big Six in providing audit credibility in the eyes of international investors. In addition, Big Six auditors strengthened their position in the finance sector and, outside the finance sector, among larger companies over the period studied. We also find that in both 1993 and 1997 Big Six firms were distinguished specifically from the second-tier international firms, consistent with the view that, in post-liberalization Greece, companies by their choice of auditor appear to be distinguishing Big Six firms from all others but not between second-tier international firms and local auditors. These findings shed light on the hitherto unresearched area of which companies Big Six auditors target in order to gain market share when they are new entrants in an environment radically changed by regulatory reform. In addition the research extends the auditor name brand reputation debate by its finding that, in post-liberalization Greece, second-tier international firms appear to be distinguished from the Big Six but not from the local audit firms.

The Hidden Internationalism of Elite English Schools

Analyses of UK higher education have provided compelling evidence of the way in which this sector has been affected by globalisation. There is now a large literature documenting the internationalisation of British universities, and the strategic and economic importance attached to attracting students from abroad. Within the schools sector, it has been argued that parents are increasingly concerned about the acquisition of valuable multicultural ‘global capital’. Nevertheless, we know little about whether ‘internationalism’ and/or the inculcation of ‘global capital’ is an explicit focus of UK schools. To start to redress this gap, this article draws on an analysis of websites, prospectuses and other publicly available documents to explore the extent to which internationalism is addressed within the public face that schools present to prospective pupils, and the nature of any such messages that are conveyed