The efficiency of corporate boards and firms’ audit fees

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dc.contributor.author Nehme, Rabih
dc.contributor.author Jizi, Mohammad
dc.date.accessioned 2020-12-03T13:20:31Z
dc.date.available 2020-12-03T13:20:31Z
dc.date.copyright 2018 en_US
dc.date.issued 2020-12-03
dc.identifier.issn 0114-0582 en_US
dc.identifier.uri http://hdl.handle.net/10725/12339 en_US
dc.description.abstract Purpose The quality of financial reporting for the financial institutions is vital for the public, as the negative consequences of manipulated financial statements will not only affect shareholders but also the regulators’ reputation and the society at large. The purpose of this paper is to assess the association between different corporate governance mechanisms and their impact on audit and reporting quality. The gender factor is introduced from a diverse boards’ perspective to highlight any impact of female presence on the quality of financial statements. Design/methodology/approach The authors examine a sample of financial institutions listed on the FTSE-350 index for the years 2011 to 2015. The financial sector has its own and different regulations, and financial reporting framework and auditors are expected to behave into more scrutiny. Bloomberg database is used to obtain governance and financial data, while firms’ annual reports are used to collect audit fees and audit committee information. A panel data regression is used to test hypotheses. The authors also control for unobservable heterogeneity, reverse causality and endogeneity. Findings The results suggest that boards with larger size and higher independence pay higher audit fees to enhance the monitoring capacity and protect the wider group of stakeholders. The results also show that women on boards are likely to reduce the risk of manipulated financial statements, as women are more inclined toward truthfulness, cautiousness and conservatism. In addition, the reported results show that audit committees with more independent members are more inclined toward obtaining higher quality audit to enhance firm’s reporting quality. Originality/value Given the recent governments’ intervention to avoid financial institutions’ negative impact on the economy, this study is relevant and provide policymakers insights into the existing relationships between audit fees and financial institutions’ governance structure. en_US
dc.language.iso en en_US
dc.title The efficiency of corporate boards and firms’ audit fees en_US
dc.type Article en_US
dc.description.version Published en_US
dc.title.subtitle the case of the FTSE financial institutions en_US
dc.author.school SOB en_US
dc.author.idnumber 199710210 en_US
dc.author.idnumber 200201121 en_US
dc.author.department Finance And Accounting en_US
dc.description.embargo N/A en_US
dc.relation.journal Pacific Accounting Review en_US
dc.journal.volume 30 en_US
dc.journal.issue 3 en_US
dc.article.pages 297-317 en_US
dc.keywords Audit committee effectiveness en_US
dc.keywords Audit fees en_US
dc.keywords Board structure en_US
dc.keywords Board gender diversity en_US
dc.keywords External auditors en_US
dc.identifier.doi https://doi.org/10.1108/PAR-12-2016-0116 en_US
dc.identifier.ctation Nehme, R., & Jizi, M. (2018). The efficiency of corporate boards and firms’ audit fees: the case of the FTSE financial institutions. Pacific Accounting Review, 30(3), 297-317. en_US
dc.author.email rabih.nehme@lau.edu.lb en_US
dc.author.email mohammad.jizi@lau.edu.lb en_US
dc.identifier.tou http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php en_US
dc.identifier.url https://www.emerald.com/insight/content/doi/10.1108/PAR-12-2016-0116/full/html en_US
dc.orcid.id https://orcid.org/0000-0002-1028-6001 en_US
dc.orcid.id https://orcid.org/0000-0002-1911-8215 en_US
dc.author.affiliation Lebanese American University en_US

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