The Relation of Corporate Social Responsibility and Auditor Selection; Focusing on Firms’ Auditors Reputation

The goal of this research is to study the relation between corporate social responsibility and auditor selection, as two influencing factors on firms’ reputation of listed companies of Tehran Stock Exchange during 1388-1395. In this research corporate social responsibility is measured by utilizing coding method according to 25 criteria through four dimensions (environment issues, products and services, staffs and society responsibilities) which are clarified in board of directors’ report. Moreover, the operating variables of auditor selection and auditor reputation are considered at two levels of industry and market. The statistical method of the research is panel data regression. Research findings show that the relation between corporate social responsibility and auditor reputation is positive and significant at the market level. On the other hand and at the market level the relation of corporate responsibility and auditor reputation is positive with any significancy. Results of findings hold that companies do more declaration of their corporate social responsibilities tend to select independent auditors whom have high level of creditability through industry but they do not pay any severe attention to auditor reputation at the market level.