Journal article
Litigation risk and audit fees: evidence from UK firms cross-listed on US markets
Journal of Accounting and Economics, Vol.33(1), pp.91-115
2002
Abstract
Two ingredients necessary to examine the relation between litigation risk and audit pricing are (a) a litigious legal environment, and (b) publicly disclosed auditor remuneration. We combine both ingredients by focusing on UK firms offering to sell their securities publicly in the United States. We find that UK auditors charge higher fees for their services when their clients access US, but not non-US, capital markets. Further, we show that the higher fees cannot be fully explained by the SEC's extensive disclosure requirements. Rather, these findings are consistent with audit fees reflecting risk differences across liability regimes.
Details
- Title
- Litigation risk and audit fees: evidence from UK firms cross-listed on US markets
- Authors
- Ananth Seetharaman (Author) - Saint Louis UniversityFerdinand A. Gul (Corresponding Author) - City University of Hong KongStephen G. Lynn (Author) - City University of Hong Kong
- Publication details
- Journal of Accounting and Economics, Vol.33(1), pp.91-115
- Publisher
- Elsevier BV
- DOI
- 10.1016/S0165-4101(01)00046-5
- ISSN
- 1879-1980
- Organisation Unit
- School of Business and Creative Industries; University of the Sunshine Coast, Queensland
- Language
- English
- Record Identifier
- 99679188702621
- Output Type
- Journal article
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