4 Citations (Scopus)


Purpose: This study aims to examine the relationship between the presence of ex-auditor chief executive officers (CEOs) and ex-auditor chief financial officers (CFOs) with the company's investment efficiency decisions. Design/methodology/approach: The authors use non-financial Indonesian listed firms, and the authors obtain 2,763 firm-year observations of ex-auditor CEOs and 2,708 firm-year observations of ex-auditor CFOs from 2010–2019. Findings: The results show that ex-auditor CEOs tend to make efficient investment decisions, while ex-auditor CFOs do not. However, when a company has a CEO and a CFO who are both former auditors, there is a significantly stronger positive relationship with investment efficiency. These results indicate that working experience as an auditor can optimally facilitate the decision regarding investment level. Moreover, the results suggest that the CEO, as top management, has more influence in providing the company's final investment decisions, whereas the CFO plays a role in providing investment recommendations to the CEO. The results of this study are consistent with the use of alternative measurements and the robustness test of Coarsened Exact Matching (CEM). Practical implications: The results of this study can contribute as material for consideration by company management in selecting company organs with an auditor background to secure efficient investment. Originality/value: This study specifically examines the experience, values, and particular characteristics of top management with an auditor background on the company's strategic decisions. This study is also based on the phenomenon that the number of ex-auditor CEOs and CFOs in Indonesia tends to increase every year.

Original languageEnglish
Pages (from-to)559-580
Number of pages22
JournalAsian Review of Accounting
Issue number4
Publication statusPublished - 20 Oct 2022


  • Corporate sustainability
  • Ex-auditor CEO
  • Ex-auditor CFO
  • Investment efficiency


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