Common auditors and accounting comparability: evidence from Vietnam

Purpose This study aims to investigate the relationship between common auditors and accounting comparability of listed companies in Vietnam. Design/methodology/approach The authors follow De Franco et al. (2011) to measure accounting comparability and Francis et al. (2014) to construct a measure for common auditors. Ordinary least squares regressions are used to analyse a sample of 45,178 firm-peer pair observations of companies listed in Ho Chi Minh City Stock Exchange from 2016 to 2022. Findings The authors find a positive relationship between common auditors and accounting comparability. The observed relationship is more pronounced when both audit partners of firm-peer pairs are female and when firms are audited by auditors with greater industry expertise. The authors conduct different robustness tests and find consistent results. Practical implications Investors, analysts and creditors may find our findings valuable when evaluating peer companies for the comparability of financial information, aiding their investment, valuation and lending decisions. In addition, leaders of audit firms could consider the findings of this research to establish relevant policies (e.g. by considering female gender when promoting or assigning personnel to audit engagements). Originality/value The authors provide original evidence on the positive relationship between common auditors and the accounting comparability of listed companies in Vietnam.