Abstract We identified a notable lack of academic literature on the issue of third-country auditors and the main contribution of our article is to address this gap. This research builds on adjacent audit oversight and capital markets literature and we extend this literature by providing evidence on third-country auditors. Specifically, we test the relationship between market capitalization and number of foreign IPOs of listed companies in representative EU countries (on one hand) and the existence of third-country auditors in those respective countries (on the other hand). Our research was performed in the second half of 2018 and is based on the latest data available. We have found that there are about 200 third-country auditors present in the public registers of audit oversight bodies in 11 EU countries. According to our network analysis, only European countries with a developed capital market have attracted third-country auditors. Most of the relationships of these developed EU capital markets are nurtured with non-EU capital markets that are at the same level of development (e.g. USA, Switzerland, Canada, Israel, and Australia). Our research hypotheses were validated: (1) the higher the market capitalization of a EU country, the higher the likelihood for the registration of third-country auditors; (2) the higher the number of foreign IPOs relative to the total IPOs on the stock exchange market, the higher the likelihood for the registration of third-country auditors.

中文翻译：

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欧盟加强审计监督的背景下资本市场的相互关​​系-第三国审计师的证据

摘要我们发现有关第三国审计师问题的学术文献明显不足，而本文的主要贡献在于弥补了这一差距。这项研究建立在相邻的审计监督和资本市场文献的基础上，我们通过提供有关第三国审计师的证据来扩展这些文献。具体来说，我们测试了市值与代表性欧盟国家中上市公司的外国IPO数量之间的关系（一方面）与这些国家中第三国审计师的存在（另一方面）之间的关系。我们的研究是在2018年下半年进行的，基于最新可用数据。我们发现，在11个欧盟国家的审计监督机构的公共登记册中大约有200名第三国审计师。根据我们的网络分析，只有资本市场发达的欧洲国家吸引了第三国审计员。这些发达的欧盟资本市场的大多数关系都与处于相同发展水平的非欧盟资本市场（例如美国，瑞士，加拿大，以色列和澳大利亚）共同培育。我们的研究假设得到了验证：（1）欧盟国家的市值越高，第三国审计师注册的可能性就越大；（2）外国IPO数量相对于证券市场上的IPO总数而言，第三国审计师注册的可能性越高。这些发达的欧盟资本市场的大多数关系都与处于相同发展水平的非欧盟资本市场（例如美国，瑞士，加拿大，以色列和澳大利亚）共同培育。我们的研究假设得到了验证：（1）欧盟国家的市值越高，第三国审计师注册的可能性就越大；（2）外国IPO数量相对于证券市场上的IPO总数而言，第三国审计师注册的可能性越高。这些发达的欧盟资本市场的大多数关系都与处于相同发展水平的非欧盟资本市场（例如美国，瑞士，加拿大，以色列和澳大利亚）共同培育。我们的研究假设得到了验证：（1）欧盟国家的市值越高，第三国审计师注册的可能性就越大；（2）外国IPO数量相对于证券市场上的IPO总数而言，第三国审计师注册的可能性越高。