Determinants of Audit Staff Turnover: Evidence from Taiwan
International Journal of Auditing, Vol. 17, Issue 1, pp.100-112, 2013
26 Pages Posted: 5 May 2012 Last revised: 18 Feb 2013
Date Written: May 4, 2012
High employee turnover has long been a concern in the public accounting profession. Frequent hiring, training, and replacement of professional staff could have an adverse impact on audit quality. Using proprietary data from a Big Four accounting firm in Taiwan, we employ survival analysis and examine the factors that explain the turnover of entry-level auditors. We find that female auditors are more likely to depart the accounting firm, while performance ratings, salary, and accounting background are significantly related to higher retention rates. We do not find, however, that master’s degrees incrementally increase the retention rates of professional employees. These results hold after controlling for macroeconomic factors. Our evidence complements prior survey studies and suggests that gender, performance, salary, and accounting degree explain employee turnover in Taiwanese public accounting firms.
Keywords: auditor turnover, public accounting, gender, accounting education, survival analysis
JEL Classification: M41, M42
Suggested Citation: Suggested Citation