PT - JOURNAL ARTICLE AU - Janie Casello Bouges TI - Audit Firm Selection and Hedge Fund Characteristics AID - 10.3905/jai.2011.13.4.080 DP - 2011 Mar 31 TA - The Journal of Alternative Investments PG - 80--89 VI - 13 IP - 4 4099 - https://pm-research.com/content/13/4/80.short 4100 - https://pm-research.com/content/13/4/80.full AB - This article examines the hedge fund and hedge fund manager characteristics that lead certain hedge fund managers to select quality auditors. Specifically, using a unique measure of audit quality, the author tests whether hedge fund managers with long histories choose lower-quality auditors, given that the effects of initially selecting a quality auditor lessen over time. Consistent with prior research, the author finds a negative relationship between manager tenure and the choice of a quality auditor. Further, under the theory that agency costs increase as hedge fund size increases, the author tests whether hedge funds with higher agency costs choose higher-quality auditors. Again consistent with prior research, the author’s findings indicate that increased agency costs are positively associated with the selection of higher-quality auditors.TOPICS: Real assets/alternative investments/private equity, legal/regulatory/public policy