Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Determinants of audit fees and the management of corporate disclosures
Linköping University, Department of Management and Engineering, Business Administration. Linköping University, Faculty of Arts and Sciences.
2020 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Ever since Simunic (1980), a great deal of research has examined the pricing of auditing services. The absence of proprietary audit cost data forces most researchers to use audit fee models linking theoretical concepts to observable data. In order to make audit pricing more transparent, there is a need to examine the determinants of audit fees with regard to, for example, different organizational forms, institutional settings, and governance mechanisms. Regarding corporate disclosures, most prior research has investigated various determinants, although little field-based research has focused on the actual disclosure process. By focusing on disclosure practices, it is possible to explore the role of essential actors involved in the preparation of annual reports. The overall aim of this thesis is twofold: first, to explore theoretically salient influences on audit fees by analyzing the effects of client business risk, municipal ownership, and the content of internal audit disclosures, and second, to improve our understanding of how companies manage their corporate disclosures.

This thesis consists of a compilation of four papers and a comprehensive summary. The specific aim of each paper and current knowledge of the phenomenon under study have formed the basis for the methodological choices (interviews, content analysis, and regression analysis). The empirical material consists mainly of publicly available data from annual reports and of interviews with managers of listed companies, audit firms, and communication agencies. Given the twofolded aim of this thesis, evidence is provided that: (i) the determinants of audit fee cutting and relative audit fee pressure are considerably different, especially with regard to different client business risk factors; (ii) municipal companies are paying significantly lower audit fees than equivalent private companies; (iii) there is a considerable heterogeneity in internal auditing disclosures, and companies with more transparent firm-specific disclosures related to internal auditing pay lower audit fees than do those not providing such disclosures; and (iv) the management of corporate disclosure within the annual report is heavily influenced by the knowledge, skills, and personal characteristics of the project manager.

Abstract [sv]

Ända sedan Simunic (1980) har ett stort antal studier undersökt prissättningen av revisionstjänster. Avsaknaden av företagsintern data över de faktiska revisionskostnaderna har tvingat majoriteten av alla forskare att använda revisionskostnadsmodeller, vilka länkar teoretiska koncept med observerbar data. För att göra prissättningen av revision mer transparant finns det ett behov av att ytterligare undersöka revisionskostnadernas bakomliggande faktorer med hänsyn till exempelvis olika organisationsformer, institutionella miljöer och styrningsmekanismer. Gällande informationsgivning från företag, har en stor andel av tidigare forskning undersökt olika bakomliggande faktorer, dock existerar det fåtalet fältstudier med fokus på den faktiska processen som ligger till grund för offentliggörande av information. Genom att fokusera på informationsgivning i praktiken är det möjligt att utforska rollen av väsentliga aktörer som är inblandade i framtagandet av årsredovisningar. Det övergripande syftet med denna avhandling är tudelat, först att utforska teoretiskt betydande influenser på bolags revisionskostnader genom att analysera effekterna av klienters affärsrisk, kommunalt ägande och innehållet i upplysningar kring internrevision, och för det andra, att förbättra vår förståelse för hur företag hanterar sitt informationsgivande.

Den här avhandlingen består av fyra artiklar och en sammanfattande kappa. Varje enskilt syfte i respektive artikel och det nuvarande evidensläget gällande studiefenomenet har legat till grund för de metodologiska övervägandena (intervjuer, innehållsanalys, och regressionsanalys). Det empiriska materialet består i huvudsak av publikt tillgänglig data från årsredovisningar och intervjuer med anställda på noterade bolag, revisionsbyråer, och kommunikationsbyråer. Med hänsyn till studiens tudelade syfte, påvisas följande resultat: (i) de bakomliggande faktorerna som förklarar en sänkning av revisionskostnaderna och en relativ press av revisionskostnaderna är betydligt olika, speciellt med hänsyn till olika faktorer relaterade till företags affärsrisk; (ii) kommunalägda fastighetsbolag har lägre revisionskostnader jämfört med likvärdiga privata bolag; (iii) det är en betydande heterogenitet gällande upplysningar kring internrevision och företag med mer transparanta företags-specifika upplysningar betalar lägre revisionskostnader jämfört med bolag utan dessa upplysningar; och (iv) styrningen av företags informationsutgivande i årsredovisningen är starkt influerad av projektledarens kunskap, kompetens och personliga karaktärsdrag.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2020. , p. 87
Series
Linköping Studies in Arts and Sciences, ISSN 0282-9800 ; 779
Keywords [en]
Audit fees, Audit fee pressure, Annual report, Business risk, Disclosures, Hybrid organizations, Internal auditing, Project manager
Keywords [sv]
Revisionskostnader, Press av revisionskostnader, Årsredovisning, Affärsrisk, Upplysningar, Hybrida organisationer, Internrevision, Projektledare
National Category
Business Administration
Identifiers
URN: urn:nbn:se:liu:diva-163345DOI: 10.3384/diss.diva-163345ISBN: 9789179299224 (print)OAI: oai:DiVA.org:liu-163345DiVA, id: diva2:1390734
Public defence
2020-02-07, ACAS, A Building, Campus Valla, Linköping, 13:15 (Swedish)
Opponent
Supervisors
Available from: 2020-02-03 Created: 2020-02-03 Last updated: 2020-02-03Bibliographically approved
List of papers
1. Does municipal ownership affect audit fees?
Open this publication in new window or tab >>Does municipal ownership affect audit fees?
Show others...
2019 (English)In: Journal of Management and Governance, ISSN 1385-3457, E-ISSN 1572-963X, Vol. 23, no 3, p. 693-713Article in journal (Refereed) Published
Abstract [en]

This study analyses whether municipal ownership affects and determines audit fees. Our model of the determinants of audit fees was tested on data from 249 Swedishmunicipal and 240 private corporations within the real estate industry, thus extendingthe study of audit fees to hybrid organizations. The statistical analysis was followedup with interviews of five partners from five different audit firms. The resultof the study shows that municipal corporations are paying significantly lower auditfees than equivalent private corporations. This finding is primarily explained bylower perceived business risk and by the fact that municipalities are able to pushprices by coordinating procurements of audit services.

Place, publisher, year, edition, pages
Springer, 2019
Keywords
Audit fees, Business risk, Hybrid organizations, Municipal ownership, Reputation risk
National Category
Business Administration
Identifiers
urn:nbn:se:liu:diva-152255 (URN)10.1007/s10997-018-9438-4 (DOI)000482829700004 ()
Available from: 2018-10-24 Created: 2018-10-24 Last updated: 2020-03-27
2. Exploring the association between the content of internal audit disclosures and external audit fees: Evidence from Sweden
Open this publication in new window or tab >>Exploring the association between the content of internal audit disclosures and external audit fees: Evidence from Sweden
2018 (English)In: International Journal of Auditing, ISSN 1090-6738, E-ISSN 1099-1123, Vol. 22, no 2, p. 285-297Article in journal (Refereed) Published
Abstract [en]

The aim of this study is to explore the content of internal audit (IA) disclosures in annual reports and explain the relationship between IA disclosures and external audit fees. A content analysis of the IA disclosures made it possible to generate inductive categories that were used as a basis for statistical analysis. The findings show a large variation in disclosure practices, and only a small portion of all disclosures contain firm‐specific information related to IA. Evidence is provided that the use of an IA function (IAF) is associated with higher external audit fees. However, companies that disclose firm‐specific information related to IA pay lower audit fees than those not providing this disclosure. Overall, the results of this study indicate that firm‐specific IA disclosures most likely represent actual investments in IA and can be used as a proxy for IAF quality.

Place, publisher, year, edition, pages
Wiley-Blackwell Publishing Inc., 2018
Keywords
Audit fees, corporate governance, disclosure, internal audit
National Category
Business Administration
Identifiers
urn:nbn:se:liu:diva-150157 (URN)10.1111/ijau.12120 (DOI)000437065800011 ()2-s2.0-85050096265 (Scopus ID)
Available from: 2018-08-14 Created: 2018-08-14 Last updated: 2020-02-03Bibliographically approved

Open Access in DiVA

fulltext(5200 kB)83 downloads
File information
File name FULLTEXT01.pdfFile size 5200 kBChecksum SHA-512
1657a602f7603ee129789b85a0e2f3019b796c0c26a7bdb9b314707ada70bb6714ea80bf8df15f80809b8bfc932b9f294d3acfc7b52191b9ee8ebc6d206b4a54
Type fulltextMimetype application/pdf
Order online >>

Other links

Publisher's full text

Search in DiVA

By author/editor
Axén, Linus
By organisation
Business AdministrationFaculty of Arts and Sciences
Business Administration

Search outside of DiVA

GoogleGoogle Scholar
Total: 83 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

doi
isbn
urn-nbn

Altmetric score

doi
isbn
urn-nbn
Total: 519 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf