Powered by OpenAIRE graph
Found an issue? Give us feedback
addClaim

Audit Committee Connectedness and Audit Fees

Authors: Md. Shariful Islam; William R. McCumber; William W. Stammerjohan; Nusrat Farah;

Audit Committee Connectedness and Audit Fees

Abstract

The study examines the effect of audit committees connectedness, measured using network centrality from social network theory, on audit fees. We also test the effect of the same on audit quality and audit timeliness. We find that network centrality measures of audit committees are positively and significantly associated with audit fees. Moreover, we document that audit committees connectedness is associated with better financial reporting quality and audit timeliness, which might explain the increase in audit fees. We conduct several robustness tests and document the same results. Additional analysis indicates that the results are driven by the overall centrality of the audit committee and not by the centrality of committee chairs, committee financial experts, or members of the committee. Our results also hold true for both pre and post SOX period and after controlling for CEO and CFO network centrality measures. Overall, the findings suggest that connected audit committees are associated with higher audit fees because they demand better audit quality and timely dissemination of information.

Related Organizations
  • BIP!
    Impact byBIP!
    selected citations
    These citations are derived from selected sources.
    This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    0
    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Average
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    Average
    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
    Average
Powered by OpenAIRE graph
Found an issue? Give us feedback
selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
Upload OA version
Are you the author of this publication? Upload your Open Access version to Zenodo!
It’s fast and easy, just two clicks!