Ownership structures influence on audit fee

Purpose : The purpose of this study is to investigate the association between corporate ownership structures and audit fees paid to external auditors by Malaysian companies listed on Bursa Malaysia. This study focuses on the extent of the auditor’s reliance on the client’s internal control inasmuch...

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Main Authors:	Puat Nelson, Sherliza, Mohamed-Rusdi, Nurul Farha
Format:	Article
Language:	English
Published:	Emerald Group of Publishing Ltd 2015
Subjects:	H96 Public policy (General), Policy sciences HG4001 Financial management. Business finance. Corporation finance.
Online Access:	http://irep.iium.edu.my/47463/ http://irep.iium.edu.my/47463/1/Nelson_and_Mohamed-rusdi_2015.pdf

id	iium-47463
recordtype	eprints
spelling	iium-474632018-05-21T01:59:40Z http://irep.iium.edu.my/47463/ Ownership structures influence on audit fee Puat Nelson, Sherliza Mohamed-Rusdi, Nurul Farha H96 Public policy (General), Policy sciences HG4001 Financial management. Business finance. Corporation finance. Purpose : The purpose of this study is to investigate the association between corporate ownership structures and audit fees paid to external auditors by Malaysian companies listed on Bursa Malaysia. This study focuses on the extent of the auditor’s reliance on the client’s internal control inasmuch as the corporate ownership structures are varied, and, ultimately, affect the audit fees. Design/Methodology : This study applies the agency theory in formulating three hypotheses that guide the results analysis. By employing a multi regression model for a sample of 345 Malaysian companies listed on Bursa Malaysia, this study examines the relationship of ownership structure, namely, managerial ownership, foreign ownership and government ownership with audit fees using data for 2010. Findings : The results show a significant positive relationship between audit fees and firms with larger foreign ownership and government ownership but no significant relationship with firms with higher managerial ownership. This study contributes recent evidence concerning the relationship between corporate ownership structure and audit fees. Practical implications : The regulator may consider ownership structure on the standards or regulation setting in order to be practical and operationalized in line with the impact associated with different ownership structures. The practitioners may also design appropriate methodologies and procedures for the different ownership structures for high quality service and to standardize the risk mitigation process. Social implications : The ownership structures have different influences on the audit fees, as well as complexity of the firms and their profitability. Originality : The study looks upon certain percentages of ownership structures, and how they affects audit fees, firms complexity and profitability. Emerald Group of Publishing Ltd 2015 Article PeerReviewed application/pdf en http://irep.iium.edu.my/47463/1/Nelson_and_Mohamed-rusdi_2015.pdf Puat Nelson, Sherliza and Mohamed-Rusdi, Nurul Farha (2015) Ownership structures influence on audit fee. Journal of Accounting in Emerging Economies, 5 (4). pp. 457-478. ISSN 2042-1168
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	H96 Public policy (General), Policy sciences HG4001 Financial management. Business finance. Corporation finance.
spellingShingle	H96 Public policy (General), Policy sciences HG4001 Financial management. Business finance. Corporation finance. Puat Nelson, Sherliza Mohamed-Rusdi, Nurul Farha Ownership structures influence on audit fee
description	Purpose : The purpose of this study is to investigate the association between corporate ownership structures and audit fees paid to external auditors by Malaysian companies listed on Bursa Malaysia. This study focuses on the extent of the auditor’s reliance on the client’s internal control inasmuch as the corporate ownership structures are varied, and, ultimately, affect the audit fees. Design/Methodology : This study applies the agency theory in formulating three hypotheses that guide the results analysis. By employing a multi regression model for a sample of 345 Malaysian companies listed on Bursa Malaysia, this study examines the relationship of ownership structure, namely, managerial ownership, foreign ownership and government ownership with audit fees using data for 2010. Findings : The results show a significant positive relationship between audit fees and firms with larger foreign ownership and government ownership but no significant relationship with firms with higher managerial ownership. This study contributes recent evidence concerning the relationship between corporate ownership structure and audit fees. Practical implications : The regulator may consider ownership structure on the standards or regulation setting in order to be practical and operationalized in line with the impact associated with different ownership structures. The practitioners may also design appropriate methodologies and procedures for the different ownership structures for high quality service and to standardize the risk mitigation process. Social implications : The ownership structures have different influences on the audit fees, as well as complexity of the firms and their profitability. Originality : The study looks upon certain percentages of ownership structures, and how they affects audit fees, firms complexity and profitability.
format	Article
author	Puat Nelson, Sherliza Mohamed-Rusdi, Nurul Farha
author_facet	Puat Nelson, Sherliza Mohamed-Rusdi, Nurul Farha
author_sort	Puat Nelson, Sherliza
title	Ownership structures influence on audit fee
title_short	Ownership structures influence on audit fee
title_full	Ownership structures influence on audit fee
title_fullStr	Ownership structures influence on audit fee
title_full_unstemmed	Ownership structures influence on audit fee
title_sort	ownership structures influence on audit fee
publisher	Emerald Group of Publishing Ltd
publishDate	2015
url	http://irep.iium.edu.my/47463/ http://irep.iium.edu.my/47463/1/Nelson_and_Mohamed-rusdi_2015.pdf
first_indexed	2023-09-18T21:07:32Z
last_indexed	2023-09-18T21:07:32Z
_version_	1777411034140639232

Ownership structures influence on audit fee

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