Journal article
Do political connections affect the role of independent audit committees and CEO Duality? Some evidence from Malaysian audit pricing
Journal of Contemporary Accounting and Economics, Vol.7(2), pp.82-98
2011
Abstract
This study examines whether political connection to firms affects the association between audit committee independence and demand for higher quality audits. In line with
Carcello et al. (2002), our findings show that there is a positive association between audit committee independence and audit fees thus supporting the hypothesis that more independent audit committees demand higher audit quality. However, we find that this relationship is weaker for politically connected (PCON) firms suggesting that the independence of audit committees in Malaysian PCON firms may be compromised. Additionally, we provide evidence that PCON firms that have CEO duality are perceived by audit firms as being of higher risk than CEO duality firms without political connection.
Details
- Title
- Do political connections affect the role of independent audit committees and CEO Duality? Some evidence from Malaysian audit pricing
- Authors
- Mark A. Bliss (Author) - Hong Kong Polytechnic UniversityFerdinand A. Gul (Author) - Monash University MalaysiaAbdul Majid (Author) - Monash University Malaysia
- Publication details
- Journal of Contemporary Accounting and Economics, Vol.7(2), pp.82-98
- Publisher
- Elsevier Ltd
- DOI
- 10.1016/j.jcae.2011.10.002
- Organisation Unit
- University of the Sunshine Coast, Queensland; School of Business and Creative Industries
- Language
- English
- Record Identifier
- 99679189902621
- Output Type
- Journal article
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