Blockholders' Ownership and Audit Fees: The Impact of the Corporate Governance Model

Abstract : This paper examines how two prominent corporate governance models, namely the shareholder and stakeholder models, have different effects on the relation between agency conflicts and the supply, and demand of audit services. Shareholder (stakeholder) countries rely heavily on public (private) information to reduce information asymmetry for outside investors in the context of high (low) litigation risk. We expect audit fees to reflect the level of agency conflicts in shareholder countries as well as the needs for information of the major blockholders in stakeholder countries. Using a sample of 7982 firm-year observations from 19 countries, we find a U-shaped relation between controlling shareholding and audit fees for shareholder countries and an inverted U-shaped relation between controlling shareholding and audit fees for stakeholder countries. These results are consistent across different firm-level governance arrangements.
Type de document :
Article dans une revue
European Accounting Review, 2016, pp.1--24. 〈10.1080/09638180.2016.1243483〉
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https://hal.archives-ouvertes.fr/hal-01563002
Contributeur : Romain Boisselet <>
Soumis le : lundi 17 juillet 2017 - 11:32:06
Dernière modification le : mardi 3 juillet 2018 - 11:23:49

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Raul Barroso, Chiraz Ben Ali, Cédric Lesage. Blockholders' Ownership and Audit Fees: The Impact of the Corporate Governance Model. European Accounting Review, 2016, pp.1--24. 〈10.1080/09638180.2016.1243483〉. 〈hal-01563002〉

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