Does Personality Similarity Influence the Formation of Auditor-in-Charge–Client Relationships and Audit Quality? Evidence from Swedish Military Conscription Data
References
- (1966) Traits revisited. Amer. Psych. 21(1):1–10. Crossref, Google Scholar
- (2016) Predicting psychological and subjective well-being from personality: Incremental prediction from 30 facets over the big 5. J. Happiness Stud. 17(1):59–80.Crossref, Google Scholar
- (2001) The effects of personality similarity on peer ratings of contextual work behaviors. Personnel Psych. 54(2):331–360.Crossref, Google Scholar
- (2019) Do practitioner assessments agree with academic proxies for audit quality? Evidence from PCAOB and internal inspections. J. Accounting Econom. 67(1):144–174. Crossref, Google Scholar
- (2015) Capital market consequences of audit partner quality. Accounting Rev. 90(6):2143–2176.Crossref, Google Scholar
- (2021) Heterogeneity in expertise in a credence goods setting: Evidence from audit partners. Rev. Account. Stud. 26(2):693–729. Crossref, Google Scholar
- (1989) Social identity theory and the organization. Acad. Management Rev. 14(1):20–39.Crossref, Google Scholar
- (2015) CEO characteristics and audit report timeliness: Do CEO tenure and financial expertise matter? Managerial Auditing J.Crossref, Google Scholar
- (2005) Earnings quality in U.K. private firms: Comparative loss recognition timeliness. J. Accounting Econom. 39(1):83–128. Crossref, Google Scholar
- (2005) Yes, personality matters: Moving on to more important matters. Human Performance 18(4):359–372.Crossref, Google Scholar
- (1996) Development of leader-member exchange: A longitudinal test. Acad. Management J. 39(6):1538–1567.Crossref, Google Scholar
- (2022) A matter of appearances: How does auditing expertise benefit audit committees when selecting auditors? Contemporary Accounting Res. 39(1):234–270.Crossref, Google Scholar
- (2005) Does function follow organizational form? Evidence from the lending practices of large and small banks. J. Financial Econom. 76(2):237–269.Crossref, Google Scholar
- (2013) Miljardskräll för PWC i Prosolvia-målet. Svenska Dagbladet (August 15), https://www.svd.se/miljardskrall-for-pwc-i-prosolvia-malet.Google Scholar
- (2018) Born to lead? The effect of birth order on noncognitive abilities. Rev. Econom. Statist. 100(2):274–286.Crossref, Google Scholar
- (2011) Does CEO duality constrain board independence? Some evidence from audit pricing. Accounting Finance 51(2):361–380.Crossref, Google Scholar
- (2004) Personality and transformational and transactional leadership: A meta-analysis. J. Appl. Psych. 89(5):901–910.Crossref, Google Scholar
- (1998) Psychological team make-up as a determinant of economic firm performance: An experimental study. J. Econom. Psych. 19(1):43–73.Crossref, Google Scholar
- (2025) CEO–CFO compatibility and audit risk. British J. Management 36(3):1070–1090. Crossref, Google Scholar
- (2013) Balance between auditing and marketing: An explorative study. J. Internat. Accounting Auditing Taxation 22(1):57–70.Crossref, Google Scholar
- (2011) Non-cognitive skills and personality traits: Labour market relevance and their development in education & training systems. IZA Discussion Paper Series. No. 5743. University of Padova, CESifo and IZA, Brunello.Google Scholar
- (2014) The audit committee: Management watchdog or personal friend of the CEO? Accounting Rev. 89(1):113–145.Crossref, Google Scholar
- (2002) Swift neighbors and persistent strangers: A cross-cultural investigation of trust and reciprocity in social exchange. Amer. J. Sociol. 108(1):168–206.Crossref, Google Scholar
- (2006) The importance of reporting incentives: Earnings management in European private firms and public firms. Accounting Rev. 81(5):983–1016.Crossref, Google Scholar
- (1971) The Attraction Paradigm, Personality and Psychopathology Monographs 11 (Academic Press, New York).Google Scholar
- (2017) Personality, Cognition and Social Interaction (Routledge, London).Crossref, Google Scholar
- (2008) Audit effort and earnings management. J. Accounting Econom. 45(1):116–138.Crossref, Google Scholar
- (2016) Do audit clients successfully engage in opinion shopping? Partner‐level evidence. J. Accounting Res. 54(1):79–112.Crossref, Google Scholar
- (2021) The importance of partner narcissism to audit quality: Evidence from Taiwan. Accounting Rev. 96(6):103–127.Crossref, Google Scholar
- (1982) The demand for external auditing: Size, debt and ownership influences. Accounting Rev. 57(2):272–291.Crossref, Google Scholar
- (2009) Guanxi vs networking: Distinctive configurations of affect- and cognition-based trust in the networks of Chinese vs American managers. J. Int. Bus. Stud. 40(3):490–508. Crossref, Google Scholar
- (2020) The role of auditor narcissism in auditor‐client negotiations: Evidence from China. Contemporary Accounting Res. 37(3):1756–1787.Crossref, Google Scholar
- (2013) Two economists’ musings on the stability of locus of control. Econom. J. 123(570):F358–F400.Google Scholar
- (2010) Corporate governance in the post‐Sarbanes‐Oxley era: Auditors’ experiences. Contemporary Accounting Res. 27(3):751–786.Crossref, Google Scholar
- (2005) An analysis of earnings management by European private firms. J. Internat. Accounting Auditing Taxation 14(1):1–17.Crossref, Google Scholar
- (2017) Who becomes a politician? Quart. J. Econom. 132(4):1877–1914.Crossref, Google Scholar
- (1995) Personality similarity and work-related outcomes among African-American nursing personnel: A test of the supplementary model of person-environment congruence. J. Vocational Behav. 46(1):55–70.Crossref, Google Scholar
- (1981) Auditor size and audit quality. J. Accounting Econom. 3(3):183–199.Crossref, Google Scholar
- (2014) A review of archival auditing research. J. Accounting Econom. 58(2–3):275–326.Crossref, Google Scholar
- (2020) Managing the auditor-client relationship through partner rotations: The experiences of audit firm partners. Accounting Rev. 95(2):89–111.Crossref, Google Scholar
- (2023) Voluntary vs. mandatory: The role of auditing in constraining corporate tax avoidance in small private firms. Accounting Bus. Res. 53(7):723–755.Crossref, Google Scholar
- (2021) Determinants and consequences of auditor dyad formation at the top level of audit teams. Accounting Organ. Soc. 89:101156.Crossref, Google Scholar
- (2022) The rising return to noncognitive skill. Amer. Econom. J.: Appl. Econom. 14(2):78–100.Crossref, Google Scholar
- (2017) The stability of personality traits in adolescence and young adulthood. J. Econom. Psych. 60:37–52.Crossref, Google Scholar
- (1997) Implicit theories, self-schemas, and leader-member exchange. Acad. Management J. 40(4):988–1010.Crossref, Google Scholar
- (2022) What does homophily do? A review of the consequences of homophily. Acad. Management Ann. 16(1):38–69.Crossref, Google Scholar
- Föreningen Auktoriserade Revisorer (2005) Vägledning vid upphandling av lagstadgad revision. Accessed October 22, 2025, https://www.advokatsamfundet.se/Nyhetsarkiv/2005/mars/Vagledning-vid-upphandling-av-lagstadgad-revision/.Google Scholar
- Federation of European Accountants (2016) Pursuing a strategic debate: The future of audit and assurance. Discussion paper, Federation of European Accountants, Brussels.Google Scholar
- (2018) Trait paranoia shapes inter-subject synchrony in brain activity during an ambiguous social narrative. Nature Comm. 9(1):2043.Crossref, Google Scholar
- (2013) How do regulatory reforms to enhance auditor independence work in practice? Contemporary Accounting Res. 30(3):864–890.Crossref, Google Scholar
- (2013) An interview study to understand the reasons clients change audit firms and the client’s perceived value of the audit service. Current Issues Auditing 7(1):A1–A14.Crossref, Google Scholar
- (2008) The joint effect of investor protection and Big 4 audits on earnings quality around the world. Contemporary Accounting Res. 25(1):157–191.Crossref, Google Scholar
- (2022) Does distance matter? An investigation of partners who audit distant clients and the effects on audit quality. Contemporary Accounting Res. 39(2):947–981.Crossref, Google Scholar
- (2011) The relative importance of firm incentives versus country factors in the demand for assurance services by private entities. Contemporary Accounting Res. 28(2):487–516.Crossref, Google Scholar
- (2012) At what level (and in whom) we trust: Trust across multiple organizational levels. J. Management 38(4):1167–1230.Crossref, Google Scholar
- (2001) Evidence about auditor–Client management negotiation concerning client’s financial reporting. J. Accounting Res. 39(3):535–563.Crossref, Google Scholar
- (2007) The chief financial officer’s perspective on auditor‐client negotiations. Contemporary Accounting Res. 24(2):387–422.Crossref, Google Scholar
- (2016) The cost of friendship. J. Financial Econom. 119(3):626–644.Crossref, Google Scholar
- (2014) Is the effect of industry expertise on audit pricing an office-level or a partner-level phenomenon? Rev. Accounting Stud. 19:1532–1578.Crossref, Google Scholar
- (2016) CEO personality and firm policies. NBER Working Paper No. 22435, National Bureau of Economic Research, Cambridge, MA.Google Scholar
- (2016) The making of a manager: Evidence from military officer training. J. Labor Econom. 34(4):869–898.Crossref, Google Scholar
- (2007) Service Management and Marketing: Customer Management in Service Competition (John Wiley & Sons, Hoboken, NJ).Google Scholar
- (2016) Do school ties between auditors and client executives influence audit outcomes? J. Accounting Econom. 61(2–3):506–525.Crossref, Google Scholar
- (2013) Do individual auditors affect audit quality? Evidence from archival data. Accounting Rev. 88(6):1993–2023.Crossref, Google Scholar
- (2022) Behavioral economics of accounting: A review of archival research on individual decision makers. Contemporary Accounting Res. 39(2):1150–1214.Crossref, Google Scholar
- (1998) Beyond relational demography: Time and the effects of surface-and deep-level diversity on work group cohesion. Acad. Management J. 41(1):96–107.Crossref, Google Scholar
- (2002) Time, teams, and task performance: Changing effects of surface-and deep-level diversity on group functioning. Acad. Management J. 45(5):1029–1045.Crossref, Google Scholar
- (2012) Brain-to-brain coupling: A mechanism for creating and sharing a social world. Trends Cognitive Sci. 16(2):114–121.Crossref, Google Scholar
- (2004) Intersubject synchronization of cortical activity during natural vision. Science 303(5664):1634–1640.Crossref, Google Scholar
- (2018) Long-term impact of economic conditions on auditors’ judgment. Accounting Rev. 93(6):203–229.Crossref, Google Scholar
- (2017) Do social ties between external auditors and audit committee members affect audit quality? Accounting Rev. 92(5):61–87.Crossref, Google Scholar
- (2012) Agency conflicts and auditing in private firms. Accounting Organ. Soc. 37(7):500–517.Crossref, Google Scholar
- (2008) Personality testing and industrial–Organizational psychology: Reflections, progress, and prospects. Indust. Organ. Psych. 1(3):272–290.Crossref, Google Scholar
- (2010) Is spousal similarity for personality a matter of convergence or selection? Personality Individual Differences 49(7):827–830.Crossref, Google Scholar
- (1992) Homophily and differential returns: Sex differences in network structure and access in an advertising firm. Admin. Sci. Quart. 37(3):422–447.Crossref, Google Scholar
- International Auditing and Assurance Standards Board (2009) International Standard on Quality Control (ISQC) 1. Accessed October 22, 2025, https://www.ifac.org/Store/Details.tmpl?SID= 10779265383791012.Google Scholar
- (2016) BDO vinner skadeståndsmål i Högsta domstolen. Realtid (February 16), https://www.realtid.se/bdo-vinner-skadestandsmal-i-hogsta-domstolen. Google Scholar
- (1998) The experience and evolution of trust: Implications for cooperation and teamwork. Acad. Management Rev. 23(3):531–546.Crossref, Google Scholar
- (2000) Five-factor model of personality and transformational leadership. J. Appl. Psych. 85(5):751–765.Crossref, Google Scholar
- (2019) IQ and audit quality: Do smarter auditors deliver better audits? Contemporary Accounting Res. 36(3):1373–1416.Crossref, Google Scholar
- (1971) Personality and consumer behavior: A review. J. Marketing Res. 8(4):409–418.Crossref, Google Scholar
- (2008) Determinants of auditor choice: Evidence from a small client market. Internat. J. Auditing 12(1):65–88.Crossref, Google Scholar
- (2020) Understanding financial auditing from a service perspective. Accounting Organ. Soc. 81:101080.Crossref, Google Scholar
- (2015) Does the identity of engagement partners matter? An analysis of audit partner reporting decisions. Contemporary Accounting Res. 32(4):1443–1478.Crossref, Google Scholar
- (2013) Audit quality: Insights from the academic literature. Auditing: J. Practice Theory 32(1):385–421.Crossref, Google Scholar
- (2005) Performance matched discretionary accrual measures. J. Accounting Econom. 39(1):163–197.Crossref, Google Scholar
- (2023) Audit partner ethnicity and salient audit phenomena. Accounting Organ. Soc. 107:101440.Crossref, Google Scholar
- (2015) Bipolar disorder and leadership—A total population study. Acta Psychiatrica Scandinavica 131(2):111–119.Crossref, Google Scholar
- (2014) Audits of private companies. Hay D, Knechel WR, Willekens M, eds. The Routledge Companion to Auditing (Routledge, London), 170–180.Google Scholar
- (2010) On the use of instrumental variables in accounting research. J. Accounting Econom. 49(3):186–205.Crossref, Google Scholar
- (2019) Audit partner assignments and audit quality in the United States. Accounting Rev. 94(2):297–323.Crossref, Google Scholar
- (2000) Do companies successfully engage in opinion-shopping? Evidence from the UK. J. Accounting Econom. 29(3):321–337.Crossref, Google Scholar
- (2018) A review of the archival literature on audit partners. Accounting Horizons 32(2):1–35.Crossref, Google Scholar
- (2005) Factional groups: A new vantage on demographic faultlines, conflict, and disintegration in work teams. Acad. Management J. 48(5):794–813.Crossref, Google Scholar
- (2025) The economics of auditing in China. Research Handbook on Corporate Governance in China (Edward Elgar, Northampton, MA), 243–263.Crossref, Google Scholar
- (2011) The labor market returns to cognitive and noncognitive ability: Evidence from the Swedish enlistment. Amer. Econom. J.: Appl. Econom. 3(1):101–128.Crossref, Google Scholar
- (2024) Audit partners’ role in material misstatement resolution: Survey and interview evidence. J. Accounting Res. 62(1):275–333.Crossref, Google Scholar
- (2004) Does auditor quality and tenure matter to investors? Evidence from the bond market. J. Accounting Res. 42(4):755–793.Crossref, Google Scholar
- (2005) Marketing by CPAs: Issues with the American Institute of Certified Public Accountants. Services Marketing Quart. 26(3):71–82. Crossref, Google Scholar
- (2022) Personality similarity predicts synchronous neural responses in fMRI and EEG data. Sci. Rep. 12(1):14325.Crossref, Google Scholar
- (2001) Birds of a feather: Homophily in social networks. Annual Rev. Sociol. 27(1):415–444.Crossref, Google Scholar
- (2011) The value of financial statement verification in debt financing: Evidence from private U.S. firms. J. Accounting Res. 49(2):457–506.Crossref, Google Scholar
- (2003) Exploring the term of the auditor‐client relationship and the quality of earnings: A case for mandatory auditor rotation? Accounting Rev. 78(3):779–799.Crossref, Google Scholar
- (2012) Predicting the form and direction of work role performance from the big 5 model of personality traits. J. Organ. Behav. 33(2):175–192.Crossref, Google Scholar
- (2009) A model and literature review of professional skepticism in auditing. Auditing: J. Practice Theory 28(2):1–34.Crossref, Google Scholar
- (2017) Alcohol availability, prenatal conditions, and long-term economic outcomes. J. Political Econom. 125(4):1149–1207.Crossref, Google Scholar
- (2001) Increased susceptibility to stress at a psychological assessment of stress tolerance is associated with impaired fetal growth. Internat. J. Epidemiology 30(1):75–80.Crossref, Google Scholar
- (2016) Birds of a feather locate together? Foursquare checkins and personality homophily. Comput. Human Behav. 58:343–353.Crossref, Google Scholar
- (1983) Organizational demography. Res. Organ. Behav. 5:299–357.Google Scholar
- (2023) Audit quality: An analysis of audit partner cultural proximity to client executives. Eur. Accounting Rev. 32(4):841–873.Crossref, Google Scholar
- (2016) The marketization of accountancy. Critical Perspect. Accounting 34:79–97.Crossref, Google Scholar
- (2018) The colonization of public accounting firms by marketing expertise: Processes and consequences. Auditing: J. Practice Theory 37(1):191–213.Crossref, Google Scholar
- (2004) Auditor choice and the cost of debt capital for newly public firms. J. Accounting Econom. 37(1):113–136.Crossref, Google Scholar
- (2022) Network analysis of audit partner rotation. Contemporary Accounting Res. 39(2):1085–1119.Crossref, Google Scholar
- Public Company Accounting Oversight Board (2003) QC Section 20—System of quality control for a CPA firm’s accounting and auditing practice. https://pcaobus.org/oversight/standards/qc-standards/details/QC20.Google Scholar
- (2014) Auditors’ professional skepticism: Neutrality versus presumptive doubt. Contemporary Account. Res. 31(3):639–657.Crossref, Google Scholar
- (1997) Music preference and the five-factor model of the NEO Personality Inventory. Psych. Music 25(2):120–132.Crossref, Google Scholar
- Realtid (2018) Grant Thornton frias från miljardstämning. Realtid (September 28), https://www.realtid.se/bors-finans/grant-thornton-frias-fran-miljardstamning/.Google Scholar
- (2002) How similarity to peers and supervisor influences organizational advancement in different cultures. Acad. Management J. 45(6):1120–1136.Crossref, Google Scholar
- (2010) Emerging late adolescent friendship networks and Big Five personality traits: A social network approach. J. Personality 78(2):509–538.Crossref, Google Scholar
- (2017) Costs of mandatory periodic audit partner rotation: Evidence from audit fees and audit timeliness. Auditing: J. Practice Theory 36(1):129–149.Crossref, Google Scholar
- (1996) Trust and suspicion; the effects of situational and dispositional factors on auditors’ trust of clients. Behavioral Res. Accounting 8:154–174.Google Scholar
- (2012) Properties of persons and situations related to overall and distinctive personality-behavior congruence. J. Res. Personality 46(1):87–101.Crossref, Google Scholar
- (2001) Forecasting bankruptcy more accurately: A simple hazard model. J. Bus. 74(1):101–124.Crossref, Google Scholar
- (1998) Buyer–Seller relationships: Similarity, relationship management, and quality. Psych. Marketing 15(1):3–21.Crossref, Google Scholar
- (2002) A survey of weak instruments and weak identification in generalized method of moments. J. Bus. Econom. Statist. 20(4):518–529.Crossref, Google Scholar
- (2017) Is the public oversight of auditors effective? The impact of sanctions on loss of clients, salary and audit reporting. Eur. Accounting Rev. 26(4):787–818.Crossref, Google Scholar
- (1974) Social identity and intergroup behaviour. Soc. Sci. Inform. 13(2):65–93.Crossref, Google Scholar
- (1979) An integrative theory of intergroup conflict. Austin WG, Worchel S, eds. The Social Psychology of Intergroup Relations (Brooks/Cole, Monterey, CA), 33–47.Google Scholar
- (2002) Personality and situations in co-worker preference: Similarity and complementarity in worker compatibility. J. Bus. Psych. 17(2):223–243.Crossref, Google Scholar
- (2021) The relationship between team deep‐level diversity and team performance: A meta‐analysis of the main effect, moderators, and mediating mechanisms. J. Management Stud. 58(8):2137–2179.Crossref, Google Scholar
- (2001) CEO domination, growth opportunities, and their impact on audit fees. J. Accounting, Auditing Finance 16(3):189–208.Crossref, Google Scholar
- (2015) Applicant–employee fit in personality: Testing predictions from similarity‐attraction theory and trait activation theory. Internat. J. Selection Assessment 23(3):210–223.Crossref, Google Scholar
- (2017) Auditing private companies: What do we know? Accounting Bus. Res. 47(5):565–584.Crossref, Google Scholar
- (2016) Personality similarity in negotiations: Testing the dyadic effects of similarity in interpersonal traits and the use of emotional displays on negotiation outcomes. J. Appl. Psych. 101(10):1405–1421.Crossref, Google Scholar
- (1997) An examination of cultural influence on audit environments. Res. Accounting Regulation 11(1):129–148. Google Scholar
- (1984) Methodological issues related to the estimation of financial distress prediction models. J. Accounting Res. 22:59–82.Crossref, Google Scholar

