The Relationship Between CEO's Duality And Audit Fees
الموضوعات : International Journal of Finance, Accounting and Economics Studies
1 - Department of accounting, khoramabad branch, islamic azad university, khoramabad, iran.
الکلمات المفتاحية: CEO', s duality, audit costs, agency theory.,
ملخص المقالة :
Purpose The purpose of this study is to examine the relationship between CEO duality and audit fee. Design/methodology/approach The data used in testing the hypotheses consist of all the Tehran Stock Exchange listed companies for the period 2012 to 2021. Multivariate regression analysis is used to estimate the relationships proposed in the hypotheses. Findings The findings show that there is a positive association between CEO duality and audit fees. In companies where the CEO is also the chairman of the board of directors, they will probably face an increase in audit fees. The results indicate that companies with the presence of a CEO duality role boards tend to demand higher audit quality, and consequently, pay higher audit fees to protect shareholders’ interests. It is expected that the presence of CEO duality and the subsequent effect that this will have on board independence is likely to result in a less effective monitoring system that will increase the perceived inherent risk of the firm, and will subsequently result in a higher audit fees being charged. Originality/value This study contributes to the literature by providing extensive understanding of the influence on audit fees of the independence of the CEO Duality. This study provides policymakers with insights into the existing relationships between CEO duality and audit fees.
