Luciana is an Assistant Professor of Accounting at the Department of Accounting and Operations Management at BI Norwegian Business School. Luciana has a Ph.D. in Business and Finance (specializing in accounting) from Universidad Carlos III de Madrid, Spain.
Luciana's research interests include bank accounting, financial reporting quality, and auditing. She currently teaches a course in Research Methodology in Accounting and Business Control.
This study is a quasi-replication and extension of Bae et al. (Account Rev 92(2):19– 40, 2017), which examines the relationship between auditors’ characteristics and their audit clients’ investment efficiency. Whereas Bae et al. (Account Rev 92(2):19–40, 2017) use U.S. public firm data, we draw a more general picture by using both public and private firm data from Norway. Overall, the results for Norwegian public and private firms are in line with those Bae et al. (Account Rev 92(2):19–40, 2017) find for public U.S. firms. That is, audit clients invest more efficiently if their auditors have more knowledge and resources, measured by auditor market shares or whether a Big N audit firm performs the audit. Further, an auditor’s influence on its client’s investment efficiency is more pronounced when clients have a higher demand for information, proxied by client complexity. Finally, exploiting a regulatory change in 2011 that allowed small private Norwegian firms to opt out of previously mandatory auditing, we extend the study by Bae et al. (Account Rev 92(2):19–40, 2017). We find that audits can increase investment efficiency for small private firms. Specifically, firms that dismiss their auditors tend to overinvest more than similar firms that are not eligible to opt out of auditing. Further, firms that voluntarily keep their auditor have an overall higher investment efficiency than similar firms that are not audited.