English translation: which proves that large auditors function as an insurance
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18:15 Dec 15, 2003
English to English translations [PRO] Bus/Financial / auditors
English term or phrase:providing evidence of the insurance role
I'm having difficulty understanding the last part of this sentence. Can someone explain to me how it fits or perhaps suggest a better way to rewrite it?
Our results provide evidence that the demand for audit quality by highly-leveraged companies increases with stronger protection of creditor rights and with higher disclosure requirements. The auditor liability exposure does not have an influence on the link between leverage and auditor choice. However, firms from countries with a regime of joint and several liability are more likely to engage a Big Five auditor when leverage increases, **providing evidence of the insurance role that can be attributed to large auditors.**