Variables

Measurement indicators

Type of Variable

Terms and conditions

Reference authors

EXPLAINED VARIABLE: VALUE CREATION

EVOLTUR

Evolution of turnover (EVOLTUR)

Binary

- “0” if downward change

- “1” if upward change

Gompers et al. (2003); Brown et al. (2010)

EVOLNETI

Evolution of net income (EVOLNETI)

Binary

- “0” if downward change

- “1” if upward change

Gompers et al. (2003); Brown et al. (2010); Fodil et al. (2007)

EXPLANATORY VARIABLE: QUALITY OF THE EXTERNAL AUDIT

COMPETENCE OF THE EXTERNAL AUDITOR

Membership of the auditor in the “Big Four” (MABF)

Binary

- “0” if no

- “1” if yes

Dumontier et al. (2006); Wafa (2013); Gana & Lajmi (2013)

Respect of the steps of the audit process (RESPTAP)

Ordinal

- “0” if never

- “1” if often

- “2” if always

Djoutsa & Tagne (2013);

Tseguiankap (2015); Mock & Wright (1999)

INDEPENDENCE OF THE EXTERNAL AUDITOR

The provision of other services in addition to the audit of accounts (OFSAC)

Ordinal

- “0” if never

- “1” if often

- “2” if always

Higgs & Skantz (2006);

Djoutsa & Tagne (2013)

Evolution of audit fees (EVOLAF)

Ordinal

- “0” if downward

- “1” if stable

- “2” if upwards

Wafa (2013); Higgs & Skantz (2006)

CONTROL VARIABLES: COMPANY SIZE AND AGE

SIZE

Size of the company

Metric

Staffing levels

Abbott & Parker (2000)

AGE

Age of the company

Metric

- “1” Less than 3 years old

- “2” Between 3 and 6 years

- “3” More than 6 years old

Yeoh & Jubb (2001)