The relationship between managerial ability and audit fees
Subject Areas : مدیریتMahtab Ebrahimkhani 1 , Mehdi Beshkoh 2
1 - M.Sc, Department of Accounting, Islamic Azad University, Qazvin Branch, Iran (Correspondence Required)
2 - Assistant Professor, Department of Accounting, Islamic Azad University, Qazvin Branch, Iran
Keywords: Crisis, Management Ability, audit fees, Going Concern, Tenure,
Abstract :
The main purpose of this study is to investigate the relationship between managers' ability and audit fees in companies admitted to the Tehran Stock Exchange. The costing of audit services has been one of the topics of interest to many researchers, and so far many studies have been done in this field. Most of them pursue a major goal, which is to identify the factors influencing audit fees. One of the most important determinants of audit fees is the concept of managerial ability. In accounting literature, the ability to manage one of the dimensions of human capital is a company that It is classified as an intangible asset. Define the management as the efficiency of managers towards competitors in the conversion of corporate resources. Findings show that management ability is a factor influencing the decisions of auditors. In order to measure the management ability, The statistical sample consists of 81 companies that have been selected by systematic elimination method, which consisted of 648 companies in total, covering the period from 2009 to 2016. This research is applied and used to test the hypothesis. By examining the research hypothesis, there was a significant negative correlation between managers' ability and audit fees. This result shows that firms that have more powerful executives than other companies pay less audit fees.
_||_
